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The Impact of Language Proficiency on Immigrants' Earnings in Spain

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  • Budría, Santiago

    (Universidad Nebrija)

  • Swedberg, Pablo

    (St. Louis University)

Abstract

This article uses micro-data from the Spanish National Immigrant Survey to investigate the impact of Spanish language proficiency on immigrants' earnings. The results, based on Instrumental Variables (IV), point to a substantial earnings return to Spanish proficiency, of approximately 27%. This figure varies largely across educational groups, with high-qualified workers earning a premium of almost 50%. This conspicuous complementarity between formal qualifications and language skills poses a challenge for traditional language training policies, for these typically neglect the immigrants' heterogeneous educational background.

Suggested Citation

  • Budría, Santiago & Swedberg, Pablo, 2012. "The Impact of Language Proficiency on Immigrants' Earnings in Spain," IZA Discussion Papers 6957, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6957
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    Cited by:

    1. Zorlu, Aslan & Hartog, Joop, 2018. "The Impact of Language on Socioeconomic Integration of Immigrants," IZA Discussion Papers 11485, Institute of Labor Economics (IZA).
    2. Jan C. van Ours & Yuxin Yao, 2016. "The Wage Penalty of Dialect-Speaking," Tinbergen Institute Discussion Papers 16-091/V, Tinbergen Institute.
    3. 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.
    4. Lang, Julia, 2018. "Employment effects of language training for unemployed immigrants," IAB-Discussion Paper 201821, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Chiswick, Barry R. & Wang, Zhiling, 2019. "Social Contacts, Dutch Language Proficiency and Immigrant Economic Performance in the Netherlands," GLO Discussion Paper Series 419, Global Labor Organization (GLO).
    6. 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).
    7. Bonin, Holger, 2017. "The Potential Economic Benefits of Education of Migrants in the EU," IZA Research Reports 75, Institute of Labor Economics (IZA).
    8. Chiswick, Barry R. & Wang, Zhiling, 2016. "Social Contacts, Dutch Language Proficiency and Immigrant Economic Performance in the Netherlands: A Longitudinal Study," IZA Discussion Papers 9760, Institute of Labor Economics (IZA).
    9. van Ours, Jan C. & Yao, Yuxin, 2016. "The Wage Penalty of Dialect-Speaking," CEPR Discussion Papers 11610, C.E.P.R. Discussion Papers.
    10. Zhiling Wang & Thomas de Graaff & Peter Nijkamp, 2018. "Barriers of Culture, Networks, and Language in International Migration: A Review," REGION, European Regional Science Association, vol. 5, pages 73-89.
    11. 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.

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    More about this item

    Keywords

    instrumental variables; immigration; Spanish language proficiency; earnings;
    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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