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English Deficiency and the Native-Immigrant Wage Gap

Author

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  • Miranda, Alfonso

    () (CIDE, Mexico City)

  • Zhu, Yu

    () (University of Dundee)

Abstract

We focus on the effect of English deficiency on the native-immigrant wage gap for male employees in the UK using the first wave of the UK Household Longitudinal Survey. We show that the wage gap is robust to controls for age, region of residence, educational attainment and ethnicity. However, English as Additional Language (EAL) is capable of explaining virtually all the remaining wage gap between natives and immigrants. Using the interaction of language of country of birth and age-at-arrival as instrument, we find strong evidence of a causal effect of EAL on the native-immigrant wage gap.

Suggested Citation

  • Miranda, Alfonso & Zhu, Yu, 2012. "English Deficiency and the Native-Immigrant Wage Gap," IZA Discussion Papers 7019, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7019
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    References listed on IDEAS

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    1. Blackaby, D.H. & Leslie, D.G. & Murphy, P.D. & O'Leary, N.C., 2005. "Born in Britain: How are native ethnic minorities faring in the British labour market?," Economics Letters, Elsevier, vol. 88(3), pages 370-375, September.
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    4. Fernández-Huertas Moraga, Jesús & Rapoport, Hillel, 2014. "Tradable immigration quotas," Journal of Public Economics, Elsevier, vol. 115(C), pages 94-108.
    5. Christian Dustmann & Francesca Fabbri, 2003. "Language proficiency and labour market performance of immigrants in the UK," Economic Journal, Royal Economic Society, vol. 113(489), pages 695-717, July.
    6. Chiswick, Barry R, 1991. "Speaking, Reading, and Earnings among Low-Skilled Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 149-170, April.
    7. 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.
    8. Dustmann, Christian, 1994. "Speaking Fluency, Writing Fluency and Earnings of Migrants," Journal of Population Economics, Springer;European Society for Population Economics, pages 133-156.
    9. Hoyt Bleakley & Aimee Chin, 2010. "Age at Arrival, English Proficiency, and Social Assimilation among US Immigrants," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 165-192, January.
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    Cited by:

    1. Miranda, Alfonso & Zhu, Yu, 2013. "The Causal Effect of Deficiency at English on Female Immigrants' Labor Market Outcomes in the UK," IZA Discussion Papers 7841, Institute for the Study of Labor (IZA).
    2. Yuxin Yao & Jan C. van Ours, 2015. "Language Skills and Labor Market Performance of Immigrants in the Netherlands," CReAM Discussion Paper Series 1505, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    3. De Paola, Maria & Brunello, Giorgio, 2016. "Education as a Tool for the Economic Integration of Migrants," IZA Discussion Papers 9836, Institute for the Study of Labor (IZA).
    4. Chiswick, Barry R. & Miller, Paul W., 2014. "International Migration and the Economics of Language," IZA Discussion Papers 7880, Institute for the Study of Labor (IZA).
    5. Alejandro Villagómez Amezcua & José Antonio Hidalgo Everardo, 2017. "Financial Literacy and Mathematics: A Study Among Young Mexican High School Students Alfabetismo Financiero y Matemáticas: Un Estudio entre Estudiantes Mexicanos de Preparatoria," Remef - The Mexican Journal of Economics and Finance, Instituto Mexicano de Ejecutivos de Finanzas. Remef, March.
    6. Cucculelli, Marco & Le Breton-Miller, Isabelle & Miller, Danny, 2016. "Product innovation, firm renewal and family governance," Journal of Family Business Strategy, Elsevier, pages 90-104.
    7. Bonin, Holger, 2017. "Report No. 75: The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute for the Study of Labor (IZA).
    8. Bonin, Holger & Rinne, Ulf, 2017. "Report No. 76: Machbarkeitsstudie zur Durchführung einer Evaluation der arbeitsmarktpolitischen Integrationsmaßnahmen für Flüchtlinge," IZA Research Reports 76, Institute for the Study of Labor (IZA).
    9. Ken Clark & Stephen Drinkwater & Catherine Robinson, 2017. "Self-employment amongst migrant groups: new evidence from England and Wales," Small Business Economics, Springer, vol. 48(4), pages 1047-1069, April.
    10. Yao, Yuxin & van Ours, Jan C., 2015. "Language skills and labor market performance of immigrants in the Netherlands," Labour Economics, Elsevier, vol. 34(C), pages 76-85.

    More about this item

    Keywords

    native-immigrant wage gap; English as Additional Language (EAL); age-at-arrival;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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