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The Value of Earning for Learning: Performance Bonuses in Immigrant Language Training

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  • Aslund, Olof

    (Uppsala University)

  • Engdahl, Mattias

    (IFAU)

Abstract

We study the effects of performance bonuses in immigrant language training for adults. A Swedish policy pilot conducted in 2009-2010 gave a randomly assigned group of municipalities the right to grant substantial cash bonuses to recently arrived migrants. The results suggest substantial effects on average student achievement. But these were fully driven by metropolitan areas; in other parts of Sweden performance was unaffected. The relative effects were larger for younger students but similar for men and women, and present for migrants from different parts of the world. The bonus had a less clear impact on enrollment, but there are indications that it may have increased the probability of progressing to bonus-awarding courses in metropolitan areas.

Suggested Citation

  • Aslund, Olof & Engdahl, Mattias, 2012. "The Value of Earning for Learning: Performance Bonuses in Immigrant Language Training," IZA Discussion Papers 7118, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7118
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    Cited by:

    1. Antonio Di Paolo & Bernat Mallén, 2022. ""Does geographical exposure to language learning centres matter in a bilingual city?"," IREA Working Papers 202205, University of Barcelona, Research Institute of Applied Economics, revised May 2022.
    2. Giesecke, Matthias & Schuß, Eric, 2019. "Heterogeneity in marginal returns to language training of immigrants," IAB-Discussion Paper 201919, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Julia Lang, 2022. "Employment effects of language training for unemployed immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 719-754, April.
    4. Åslund, Olof & Engdahl, Mattias & Rosenqvist, Olof, 2024. "Limbo or leverage? Asylum waiting and refugee integration," Journal of Public Economics, Elsevier, vol. 234(C).
    5. Åslund, Olof & Engdahl, Mattias, 2018. "The value of earning for learning: Performance bonuses in immigrant language training," Economics of Education Review, Elsevier, vol. 62(C), pages 192-204.
    6. Qi, Haodong & Irastorza, Nahikari & Emilsson, Henrik & Bevelander, Pieter, 2019. "Does Integration Policy Integrate? The Employment Effects of Sweden's 2010 Reform of the Introduction Program," IZA Discussion Papers 12594, Institute of Labor Economics (IZA).
    7. Di Paolo, Antonio & Mallén, Bernat, 2023. "Does geographical exposure to language learning centres affect language skills and labour market outcomes in a bilingual city?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 429-449.

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    More about this item

    Keywords

    immigration; language training; performance bonus;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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