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Language Skills and Labor Market Outcomes of Immigrants in Europe

Author

Listed:
  • Aydemir, Abdurrahman

    (Sabanci University)

  • Girisken, Ahmet

    (Stockholm School of Economics)

Abstract

This paper studies the causal impact of language skills on human capital accumulation, labor market outcomes, and job characteristics of childhood immigrants across European countries. Using PIAAC data, we adopt an instrumental variable strategy based on the critical age hypothesis and linguistic distance. Our IV results show that higher language proficiency boosts human capital accumulation through formal schooling and actual labor market experience, resulting in improved labor market outcomes in terms of earnings and hours of work. Language proficiency also affects job tasks, increasing employment of reading and abstract tasks while decreasing physical work, and reduces education-job mismatch. These results indicate that language proficiency plays a significant role in enhancing productivity of immigrants in the European context.

Suggested Citation

  • Aydemir, Abdurrahman & Girisken, Ahmet, 2026. "Language Skills and Labor Market Outcomes of Immigrants in Europe," IZA Discussion Papers 18421, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18421
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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