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The impact of host language proficiency across the immigrants’ earning distribution in Spain

Author

Listed:
  • Santiago Budría

    (Universidad Pontificia Comillas)

  • Carlos Martinez de Ibarreta

    (Universidad Pontificia Comillas)

  • Pablo Swedberg

    (Saint Louis University)

Abstract

This paper explores the impact of Spanish language proficiency on immigrant earnings in Spain using an instrumental variable quantile regression approach. The impact is on average roughly 17.2% but varies substantially across the earning distribution. The return to destination language proficiency actually ranges from zero at the bottom quantiles to 30% at the top quantile of the earning distribution. These findings suggest that the benefits derived from host language knowledge are particularly important among individuals with stronger unobserved abilities and marketable skills and that language training policies targeted at specific immigrant population categories may be ineffective from a labor market earning perspective. JEL Classification: F22, J24, J61

Suggested Citation

  • Santiago Budría & Carlos Martinez de Ibarreta & Pablo Swedberg, 2017. "The impact of host language proficiency across the immigrants’ earning distribution in Spain," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-27, December.
    • Handle: RePEc:spr:izamig:v:7:y:2017:i:1:d:10.1186_s40176-017-0094-2
    DOI: 10.1186/s40176-017-0094-2
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    References listed on IDEAS

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    Cited by:

    1. Zhou, Yonghong & Zhu, Rong & Zheng, Xian, 2020. "Second language skills and labor market outcomes: Evidence from the handover of Hong Kong," China Economic Review, Elsevier, vol. 59(C).
    2. 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.
    3. Davia, María A. & Wang, Ting & Gámez, Matías, 2019. "Language proficiency and immigrants’ labor market outcomes in post-crisis Spain," MPRA Paper 94795, University Library of Munich, Germany.
    4. Laura Helena Kivi & Marko Sõmer & Epp Kallaste, 2020. "Language training for unemployed non-natives: who benefits the most?," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 20(1), pages 34-58.

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    More about this item

    Keywords

    Immigration; Spanish language proficiency; Earnings; Instrumental variable quantile regression (IVQR);
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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