Heterogeneity in marginal returns to language training of immigrants

Matthias Giesecke and Eric Schuß
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Eric Schuß: Institute for Employment Research (IAB), Nuremberg, Germany

No 201919, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "We estimate the effect of language training on subsequent employment and wages of immigrants under essential heterogeneity. The identifying variation is based on regional differences in language training availability that we use to instrument endogenous participation. Estimating marginal treatment effects along the distribution of observables and unobservables that drive individual participation decisions, we find that immigrants with higher gains are more likely to select into language training than immigrants with lower gains. We document up to 15 percent higher employment rates and 13 percent wage gains for immigrants with a high desire to participate but the positive returns vanish with increasing resistance to treatment. This pattern of selection on gains correlates with unobserved ability and motivation, promoting investments in education and job-specific skills that yield higher returns when complemented by language capital in the host country." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Beschäftigungseffekte; Einwanderer; Lohnhöhe; IAB-SOEP-Migrationsstichprobe; Sprachkenntnisse; Sprachunterricht (search for similar items in EconPapers)
JEL-codes: F22 J24 J61 J68 O15 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2019-09-09
New Economics Papers: this item is included in nep-eur, nep-lab, nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201919

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