How valuable are language skills in the Luxembourg labour market?

Thomas Mathä, Giuseppe Pulina and Michael Ziegelmeyer

BCL Bulletin Analyses, 2022, vol. 2022-1, 85-93

Abstract: This analysis explores the languages skills in the Luxembourg labour market and how they affect employment income, using data on residents and cross-border workers collected through the Household Finance and Consumption Survey (HFCS). On average, workers in the Luxembourg labour market are proficient in more than one language, reflecting the country’s linguistic diversity. Native and foreign-born residents tend to be proficient in more languages than cross-border workers. Employees who master more languages tend to earn higher employment income. Mastering an additional language is associated with a 5% higher hourly wage. In particular, proficiency in English is associated with an 18% higher hourly wage.

Keywords: Survey; employment; wages; language (search for similar items in EconPapers)
JEL-codes: I26 J31 R23 Z13 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:bcl:bclban:bclanalyse20221a3

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