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Foreign Languages and their Impact on Income and Unemployment

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  • Donado, Alejandro

Abstract

Using a repeated cross-section of more than 258,000 residents of 39 European countries covering the period from 1990 to 2012, I study the impact of knowing different foreign languages on income and (for the first time) on unemployment. To help identify causal effects, I also employ a novel instrument based on the linguistic distance between the respondent's mother tongue and the foreign language in question. My results indicate that individuals that are able to speak foreign languages have a higher income and are less likely to be unemployed.

Suggested Citation

  • Donado, Alejandro, 2014. "Foreign Languages and their Impact on Income and Unemployment," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100288, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc14:100288
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    References listed on IDEAS

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    Cited by:

    1. Astghik Mavisakalyan, 2017. "Returns to language skills in transition economies," IZA World of Labor, Institute of Labor Economics (IZA), pages 416-416, December.
    2. Makó, Ágnes, 2019. "A közismereti tudás és az elkötelezettség hatása a szakiskolát végzettek munkaerőpiaci esélyeire [General knowledge and commitment as factors in the labour-market chances of those completing vocati," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 434-458.
    3. Bia, Michela & Flores-Lagunes, Alfonso & Mercatanti, Andrea, 2018. "Evaluation of Language Training Programs in Luxembourg using Principal Stratification," GLO Discussion Paper Series 289, Global Labor Organization (GLO).

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    More about this item

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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