The Returns to Language Skills in the US Labor Market

33 Pages Posted: 16 Jan 2013

See all articles by Ingo E. Isphording

Ingo E. Isphording

IZA Institute of Labor Economics

Mathias Sinning

Australian National University (ANU) - Crawford School of Public Policy

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2012

Abstract

This paper uses data from the 2010 American Community Survey (ACS) to study the returns to language skills of child and adult migrants in the US labor market. We employ an instrumental variable strategy, which exploits differences in language acquisition profiles between immigrants from English- and non-English-speaking countries of origin, to address problems related to endogeneity and measurement error. We find significantly positive returns to language skills and demonstrate that education is an important channel through which language skills affect wages of child migrants. Although the returns of adult migrants do not depend on education, we find that child and adult migrants exhibit similar returns to language skills.

Keywords: international migration, language skills, labor productivity

JEL Classification: F22, J24, J31

Suggested Citation

Isphording, Ingo E. and Sinning, Mathias, The Returns to Language Skills in the US Labor Market (December 1, 2012). Ruhr Economic Paper No. 391, Available at SSRN: https://ssrn.com/abstract=2200833 or http://dx.doi.org/10.2139/ssrn.2200833

Ingo E. Isphording

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Mathias Sinning (Contact Author)

Australian National University (ANU) - Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

HOME PAGE: http://www.mathiassinning.com

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