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Immigrant Labour Market Outcomes: New Insights from a Lack of Language Proficiency in Italy

Author

Listed:
  • L. Pieroni

    (University of Perugia)

  • G. d’Agostino

    (Roma Tre University)

  • D. Lanari

    (University of Perugia)

  • M. Scarlato

    (Roma Tre University)

Abstract

In this paper, we examine how immigrants’ proficiency in the Italian language affects their labour market performance using hitherto unexploited immigration survey published by the Italian Institute of Statistics. With respect to immigrants with good proficiency in the Italian language, our empirical findings suggest that weak language proficiency reduces the probability to be employed by about 25–30 percentage points. Language proficiency in Italian also significantly affects the hourly wages of immigrants. The point estimates suggest an hourly wage gap of more than 30% between immigrants with good proficiency in the Italian language compared to those with weak proficiency, irrespective of gender. Robustness checks confirmed our estimates.

Suggested Citation

  • L. Pieroni & G. d’Agostino & D. Lanari & M. Scarlato, 2024. "Immigrant Labour Market Outcomes: New Insights from a Lack of Language Proficiency in Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 10(1), pages 293-327, March.
    • Handle: RePEc:spr:italej:v:10:y:2024:i:1:d:10.1007_s40797-022-00216-0
    DOI: 10.1007/s40797-022-00216-0
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    Keywords

    Immigrants; Language skills; Employment; Hourly wages;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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