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Language learning: human capital investment or consumption?

Author

Listed:
  • Matthias Huber

    (Friedrich Schiller University Jena
    Federal Office for Migration and Refugees)

  • Ann-Marie Sommerfeld

    (University of Göttingen)

  • Silke Uebelmesser

    (Friedrich Schiller University Jena
    CESifo)

Abstract

This paper focuses on foreign language learning as human capital investment or consumption. We apply the human capital investment framework to foreign language learning and enlarge it by the consumption motive. Based on a novel dataset of close to 5000 language course participants in 14 countries worldwide, we estimate individual and country-level determinants of the different motives for language learning and of the expected use of language skills in the labour market. We highlight possible spillovers from the consumption motive to a professional use, which emerge mostly in a “tied-mover” context. This provides guidance for targeted language policies.

Suggested Citation

  • Matthias Huber & Ann-Marie Sommerfeld & Silke Uebelmesser, 2022. "Language learning: human capital investment or consumption?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(4), pages 897-948, November.
    • Handle: RePEc:kap:empiri:v:49:y:2022:i:4:d:10.1007_s10663-022-09548-7
    DOI: 10.1007/s10663-022-09548-7
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    1. Huber, Matthias & Uebelmesser, Silke, 2023. "Presence of language-learning opportunities and migration," Labour Economics, Elsevier, vol. 84(C).

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    More about this item

    Keywords

    Language learning; New dataset; Human capital investment; Consumption;
    All these keywords.

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F15 - International Economics - - Trade - - - Economic Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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