IDEAS home Printed from https://ideas.repec.org/p/mos/moswps/2013-18.html
   My bibliography  Save this paper

Age at Migration, Language Proficiency and Socio-economic Outcomes: Evidence from Australia

Author

Listed:
  • Cahit Guven
  • Asadul Islam

Abstract

This paper seeks to estimate the causal effects of language proficiency on the earnings and social assimilation of Australian immigrants. Identifying the effects of languages on socio-economic outcomes is inherently difficult, due to the endogeneity of the language skills. This study exploits the phenomenon that younger children learn languages more easily than older children to construct an instrumental variable for language proficiency. To achieve this, we exploit the age at arrival of immigrants who came as children from Anglophone and non-Anglophone countries. We find English proficiency to have a significant positive effect on wages and promotions among adults who immigrated to Australia as children. English proficiency decreases the perceived risk of job loss, but leads to lower levels of health and life satisfaction. People with better English skills take more risks and drink more, and English proficiency increases the age at marriage. Partners of immigrants with better English skills drink more in general. Parents' proficiency in speaking English has a significant, positive effect on their children's English-speaking proficiency, high school achievements and occupational prestige. We show that IV estimates cannot be explained by alternative theories such as reverse causality and immigrants from English-speaking countries being a poor control group for non-language age-at-arrival effects.

Suggested Citation

  • Cahit Guven & Asadul Islam, 2013. "Age at Migration, Language Proficiency and Socio-economic Outcomes: Evidence from Australia," Monash Economics Working Papers 18-13, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2013-18
    as

    Download full text from publisher

    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2013/1813migrationguvenislam.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anne Case & Christina Paxson, 2011. "The Long Reach of Childhood Health and Circumstance: Evidence from the Whitehall II Study," Economic Journal, Royal Economic Society, vol. 121(554), pages 183-204, August.
    2. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-288, April.
    3. Clarke, Andrew & Skuterud, Mikal, 2014. "Immigrant Skill Selection and Utilization: A Comparative Analysis of Australia, Canada, and the United States," CLSSRN working papers clsrn_admin-2014-41, Vancouver School of Economics, revised 22 Sep 2014.
    4. 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.
    5. Teresa Casey & Christian Dustmann, 2008. "Intergenerational Transmission of Language Capital and Economic Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 4660-4687.
    6. Daneshvary, Nasser, et al, 1992. "Job Search and Immigrant Assimilation: An Earnings Frontier Approach," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 482-492, August.
    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. Heather Antecol & Deborah A. Cobb-Clark & Stephen J. Trejo, 2003. "Immigration Policy and the Skills of Immigrants to Australia, Canada, and the United States," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    9. Anne Case & Christina Paxson, 2010. "Causes and consequences of early-life health," Demography, Springer;Population Association of America (PAA), vol. 47(1), pages 65-85, March.
    10. Sarah Brown & Karl Taylor, 2008. "Reservation Wages, Expected Wages and Labour Market Outcomes: Analysis of Individual Level Panel Data," Working Papers 2008008, The University of Sheffield, Department of Economics, revised Jul 2008.
    11. Kirkman-Liff, B. & Mondragon, D., 1991. "Language of interview: Relevance for research of southwest Hispanics," American Journal of Public Health, American Public Health Association, vol. 81(11), pages 1399-1404.
    12. Battu, Harminder & Seaman, Paul & Zenou, Yves, 2011. "Job contact networks and the ethnic minorities," Labour Economics, Elsevier, vol. 18(1), pages 48-56, January.
    13. M. Keith Chen, 2013. "The Effect of Language on Economic Behavior: Evidence from Savings Rates, Health Behaviors, and Retirement Assets," American Economic Review, American Economic Association, vol. 103(2), pages 690-731, April.
    14. Christian Dustmann & Arthur Van Soest, 2002. "Language and the Earnings of Immigrants," ILR Review, Cornell University, ILR School, vol. 55(3), pages 473-492, April.
    15. repec:pri:cheawb:case_and_paxson_whitehall_jan_2011.pdf is not listed on IDEAS
    16. Lee, Jong-Wha & Barro, Robert J, 2001. "Schooling Quality in a Cross-Section of Countries," Economica, London School of Economics and Political Science, vol. 68(272), pages 465-488, November.
    17. Xin Meng & Robert G. Gregory, 2005. "Intermarriage and the Economic Assimilation of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 135-176, January.
    18. repec:pri:cheawb:case_and_paxson_early_life_health_w15637 is not listed on IDEAS
    19. repec:pri:cheawb:case_and_paxson_early_life_health_w15637.pdf is not listed on IDEAS
    20. 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.
    21. Gray Swicegood & Frank Bean & Elizabeth Stephen & Wolfgang Opitz, 1988. "Language usage and fertility in the Mexican-origin population of the United States," Demography, Springer;Population Association of America (PAA), vol. 25(1), pages 17-33, February.
    22. repec:pri:rpdevs:case_and_paxson_whitehall_jan_2011 is not listed on IDEAS
    23. Dubard, C.A. & Gizlice, Z., 2008. "Language spoken and differences in health status, access to care, and receipt of preventive services among US hispanics," American Journal of Public Health, American Public Health Association, vol. 98(11), pages 2021-2028.
    24. repec:pri:rpdevs:case_and_paxson_early_life_health_w15637 is not listed on IDEAS
    25. M. Keith Chen, 2011. "The Effect of Language on Economic Behavior: Evidence from Savings Rates, Health Behaviors, and Retirement Assets," Cowles Foundation Discussion Papers 1820, Cowles Foundation for Research in Economics, Yale University, revised Dec 2012.
    26. Paul Frijters & Michael A. Shields & Stephen Wheatley Price, 2005. "Job Search Methods and Their Success: A Comparison of Immigrants and Natives in the UK," Economic Journal, Royal Economic Society, vol. 115(507), pages 359-376, November.
    27. repec:pri:cheawb:case_and_paxson_whitehall_jan_2011 is not listed on IDEAS
    28. Jasso, Guillermina & Rosenzweig, Mark R., 2008. "Selection Criteria and the Skill Composition of Immigrants: A Comparative Analysis of Australian and U.S. Employment Immigration," IZA Discussion Papers 3564, Institute of Labor Economics (IZA).
    29. Hoyt Bleakley & Aimee Chin, 2008. "What Holds Back the Second Generation?: The Intergenerational Transmission of Language Human Capital Among Immigrants," Journal of Human Resources, University of Wisconsin Press, vol. 43(2), pages 267-298.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mary Antonia Silles, 2018. "The Effects of Language Skills on the Economic Assimilation of Female Immigrants in the United States," Manchester School, University of Manchester, vol. 86(6), pages 789-815, December.
    2. Mevlude Akbulut-Yuksel & Hoyt Bleakley & Aimee Chin, 2010. "The Effects of English Proficiency among Childhood Immigrants: Are Hispanics Different?," RF Berlin - CReAM Discussion Paper Series 1007, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    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.
    4. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    5. Yao, Yuxin, 2017. "Essays on economics of language and family economics," Other publications TiSEM 0093bc8e-e869-4f87-8ff8-8, Tilburg University, School of Economics and Management.
    6. Yao, Y. & van Ours, J.C., 2015. "Language Skills and Labor Market Performance of Immigrants in the Netherlands," Discussion Paper 2015-010, Tilburg University, Center for Economic Research.
    7. Isphording, Ingo E. & Otten, Sebastian, 2014. "Linguistic barriers in the destination language acquisition of immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 30-50.
    8. 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.
    9. Matti Sarvimäki, 2021. "Managing Refugee Protection Crises: Policy Lessons from Economics and Political Science," RF Berlin - CReAM Discussion Paper Series 2131, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    10. Antonio Di Paolo & Aysit Tansel, 2015. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 407-421, April.
    11. Ramon Caminal & Lorenzo Cappellari & Antonio Di Paolo, 2018. "Linguistic Skills and the Intergenerational Transmission of Language," Working Papers 1053, Barcelona School of Economics.
    12. Tam, King Wa & Page, Lionel, 2016. "Effects of language proficiency on labour, social and health outcomes of immigrants in Australia," Economic Analysis and Policy, Elsevier, vol. 52(C), pages 66-78.
    13. Foged, Mette & van der Werf, Cynthia, 2023. "Access to language training and the local integration of refugees," Labour Economics, Elsevier, vol. 84(C).
    14. De Paola, Maria & Brunello, Giorgio, 2016. "Education as a Tool for the Economic Integration of Migrants," IZA Discussion Papers 9836, Institute of Labor Economics (IZA).
    15. Zorlu, Aslan & Hartog, Joop, 2018. "The Impact of Language on Socioeconomic Integration of Immigrants," IZA Discussion Papers 11485, Institute of Labor Economics (IZA).
    16. Antonio Di Paolo & Aysit Tansel, 2015. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 407-421, April.
    17. Wang, Haining & Cheng, Zhiming & Smyth, Russell, 2016. "Language and consumption," China Economic Review, Elsevier, vol. 40(C), pages 135-151.
    18. Santiago Budría & Alberto Colino & Carlos Martínez de Ibarreta, 2019. "The impact of host language proficiency on employment outcomes among immigrants in Spain," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(4), pages 625-652, November.
    19. Antonio Di Paolo & Josep Lluís Raymond, 2012. "Language Knowledge and Earnings in Catalonia," Journal of Applied Economics, Taylor & Francis Journals, vol. 15(1), pages 89-118, May.
    20. Victor Ginsburgh & Shlomo Weber, 2020. "The Economics of Language," Journal of Economic Literature, American Economic Association, vol. 58(2), pages 348-404, June.

    More about this item

    Keywords

    Economics of Immigration; English Proficiency; Socio-economic Outcomes; Instrumental Variable; Australia.;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • 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
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mos:moswps:2013-18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Simon Angus (email available below). General contact details of provider: https://edirc.repec.org/data/dxmonau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.