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The Economic Value of Language Skills: A Human Capital Perspective

Author

Listed:
  • Nicoleta Aurora Stancescu

    (Affiliation: Department of Letters, Faculty of Political Sciences, Letters and Communication, Valahia University of Targoviste)

Abstract

In the modern global economy, language skills are a crucial form of human capital that significantly impact economic outcomes for individuals, businesses, and nations. This paper examines the economic value of language proficiency by exploring its influence on labor market performance, productivity, migration integration, and national competitiveness. Empirical evidence shows that multilingual individuals enjoy higher wages, better job prospects, and greater career advancement opportunities. For businesses, language proficiency enhances communication, reduces transactional errors, and improves customer satisfaction. At a national level, multilingualism supports economic growth by attracting investment, promoting international trade, and facilitating diplomatic engagement. The paper highlights the importance of policy measures that support language education and training as tools for economic development and social inclusion, particularly in multilingual and migrant-rich societies. interventions to reduce the underground economy and promote formal business practices.

Suggested Citation

  • Nicoleta Aurora Stancescu, 2023. "The Economic Value of Language Skills: A Human Capital Perspective," Social-Economic Debates, Association for Entreprenorial Spirit Promotion, vol. 12(1), pages 104-109, octombrie.
    • Handle: RePEc:sdb:social:v:12:y:2023:i:1:n:10:p:104-109
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    References listed on IDEAS

    as
    1. Hoyt Bleakley & Aimee Chin, 2004. "Language Skills and Earnings: Evidence from Childhood Immigrants," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 481-496, May.
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    More about this item

    Keywords

    language skills; human capital; economic value; labor market outcomes; multilingualism; migration integration; productivity; language education; global workforce; national competitiveness.;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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