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The Causal Effect of Deficiency at English on Female Immigrants' Labor Market Outcomes in the UK


  • Miranda, Alfonso

    () (CIDE, Mexico City)

  • Zhu, Yu

    () (University of Dundee)


We investigate the extent to which deficiency at English as measured by English as Additional Language (EAL), contribute to the immigrant-native wage gap for female employees in the UK, controlling for covariates. To deal with the endogeneity of EAL and a substantial problem of self-selection into employment we suggest a 3-step estimator (TSE). The properties of this estimator are investigated in a Monte Carlo simulation study and we show evidence that TSE delivers a consistent and asymptotically normal estimator. We find a large and statistically significant causal effect of EAL on the immigrant-native wage gap for women.

Suggested Citation

  • 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).
  • Handle: RePEc:iza:izadps:dp7841

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    References listed on IDEAS

    1. Miranda, Alfonso & Zhu, Yu, 2013. "English deficiency and the native–immigrant wage gap," Economics Letters, Elsevier, vol. 118(1), pages 38-41.
    2. Paul W. Miller & Barry R. Chiswick, 1999. "Language skills and earnings among legalized aliens," Journal of Population Economics, Springer;European Society for Population Economics, vol. 12(1), pages 63-89.
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    Cited by:

    1. 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.
    2. Morando, Greta, 2014. "Partner ethnicity and ethnic minority socio- economic occupation: evidence from the UK," ISER Working Paper Series 2014-29, Institute for Social and Economic Research.
    3. 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


    English as Additional Language (EAL); immigrant-native wage gap; endogenous treatment; sample selection;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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