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Occupational Language Requirements and the Value of English in the US Labor Market

Author

Listed:
  • Barry R Chiswick

    (Department of Economics, The University of Illinois at Chicago and The IZA-Institute for the Study of Labor)

  • Paul W Miller

    (UWA Business School, The University of Western Australia)

Abstract

This paper is concerned with the English language requirements (both level and importance) of occupations in the United States, as measured by the O*NET database. These scores are linked to microdata on employed adult (aged 25 to 64) males, both native born and foreign born, as reported in the 2000 Census, one percent sample. Working in an occupation that requires greater English language skills, whether measured by the level of these skills or the importance of English for performing the job, has a large effect on earnings among the native born, and an even larger effect among the foreign born. This effect is reduced by 50 percent, but is still large, when worker characteristics, including their own English language skills, are held constant. Earnings increase with the respondent’s own proficiency in English, with the English proficiency required for the occupation, and when those with high levels of proficiency work in jobs requiring English language skills (interaction effect). There is, therefore, a strong economic incentive for the matching of worker’s English skills and the occupation’s requirements, and this matching does tend to occur in the labor market.

Suggested Citation

  • Barry R Chiswick & Paul W Miller, 2007. "Occupational Language Requirements and the Value of English in the US Labor Market," Economics Discussion / Working Papers 07-06, The University of Western Australia, Department of Economics.
  • Handle: RePEc:uwa:wpaper:07-06
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    References listed on IDEAS

    as
    1. 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.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    English Language; Earnings; Occupation; Immigrants; Schooling;
    All these keywords.

    JEL classification:

    • 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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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