Heterogeneity in the Importance of English-Speaking Ability in Determination of Employment Status by Demographic Subgroups in the United States

Afful, Efua Amoonua (2013): Heterogeneity in the Importance of English-Speaking Ability in Determination of Employment Status by Demographic Subgroups in the United States.

Abstract

Previous literature indicates that language skills are an important determinant of success in the labor market. Using data from the 2012 American Community Survey (ACS) 1-year sample with individual weights in logit estimation, this paper shows that there is heterogeneity in the importance of English-speaking ability by gender, race and education. First, improvement in speaking proficiency in English increases the odds of employment to a point, beyond which there are no additional benefits. Second, females obtain higher benefits than males from enhancing proficiency partly due to the industry distribution of employment by gender. Finally, for proficiency in speaking English to yield substantial employment benefits, one must attain moderate to high educational qualifications. Language remains important as a determinant of success in the labor market.

• Item Type: MPRA Paper
• Language: English
• Keywords: Employment, International Labor Mobility, Immigrant Assimilation
• Subjects: J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J60 - General; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J61 - Geographic Labor Mobility ; Immigrant Workers

References

Aldashev, Alisher, Johannes Gernandt, and Stephan L. Thomsen, 2009. “Language Usage, Participation, Employment and Earnings: Evidence for Foreigners in West Germany with Multiple Sources of Selection,” Labour Economics 16(3): 330-341.

Folgi, Alessandra, and Laura Veldkamp, 2007. “Nature or Nurture? Learning and Female Labour Force Dynamics,” CEPR Discussion Papers, No. 6324.

Bloom, David E., and Gilles Grenier. 1993. “Language, Employment and Earnings in the United States: Spanish-English Differentials from 1970 to 1990,” NBER Working Paper No. 4584.

Budria, Santiago, and Pablo Swedberg, 2012. “The Impact of Language Proficiency on Immigrants’ Earnings in Spain,” IZA Discussion Paper No. 6957.

Cahuc, Pierre, and Andre Zylberberg, 2004. Labor Economics, MIT Press, Cambridge, MA.

Casale, Daniels, and Dorrit Posel, 2010. “English Language Proficiency and Earnings in a Developing County: The Case of South Africa,” Economic Research Southern Africa Working Paper No. 181.

Chiswick, Barry R., and Michael E. Hurst. 2000. “The Employment, Unemployment and Unemployment Compensation Benefits of Immigrants,” Institute for the Study of Labor (IZA), Discussion Papers, No. 129.

De Keyser, T., Ph. Delhez, and H. Zummer. 2012. “Labour Market Integration of the Population of Foreign Origin,” Economic Review (3): 25–43.

Dustmann, Christian, and Fransesca Fabbri. 2000. “Language Proficiency and Labour Market Performance of Immigrants in the UK,” Institute for the Study of Labor (IZA) Discussion Paper No. 156.

Gonzalez, Pablo Swedberg. 2010 “The Impact of Education and Host Language Skills on the Labor Market Outcomes of Immigrants in Spain,” ch. 41, p. 798-824 in Mancebón-Torrubia, María Jesús, de-Embún, Domingo P. Ximénez-, Gómez-Sancho, José María and Esteban, Gregorio Giménez eds., Investigaciones de Economía de la Educación 5, vol. 5, Asociación de Economía de la Educación.

Greene, William, 2003. Econometric Analysis (5th Edition), Prentice Hall, Upper Saddle River, NJ.

Gujarati, Damodar N. (2003), Basic Econometrics, Fourth Edition, McGraw Hill.

Massey, Douglas S., Joaquin Arango, Graeme Hugo, Ali Kouasouci, Adela Pellegrino and J. Edward Taylor, 1993. “Theories of International Migration: A Review and Appraisal,” Population and Development Review 19(3): 431-466.

Miller, Paul W., and Barry R. Chiswick, 1999. “Language Skills and Earnings Among Legalized Aliens,” Journal of Population Economics, 12(1): 63-89.

Rendon, Silvio. 2005. “The Catalan Premiun: Language and Employment in Catalonia,” Journal of Population Economics 20: 669-686.

Svantesson, Elisabeth. 2006. “Determinants of Immigrants’ Early Labor Market Integration.” Örebro University School of Business, Working Paper No. 2006(2)