The Economic Value of Language Skills: A Human Capital Perspective

Nicoleta Aurora Stancescu
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Nicoleta Aurora Stancescu: Affiliation: Department of Letters, Faculty of Political Sciences, Letters and Communication, Valahia University of Targoviste

Social-Economic Debates, 2023, vol. 12, issue 1, 104-109

Abstract: In the modern global economy, language skills are a crucial form of human capital that significantly impact economic outcomes for individuals, businesses, and nations. This paper examines the economic value of language proficiency by exploring its influence on labor market performance, productivity, migration integration, and national competitiveness. Empirical evidence shows that multilingual individuals enjoy higher wages, better job prospects, and greater career advancement opportunities. For businesses, language proficiency enhances communication, reduces transactional errors, and improves customer satisfaction. At a national level, multilingualism supports economic growth by attracting investment, promoting international trade, and facilitating diplomatic engagement. The paper highlights the importance of policy measures that support language education and training as tools for economic development and social inclusion, particularly in multilingual and migrant-rich societies. interventions to reduce the underground economy and promote formal business practices.

Keywords: language skills; human capital; economic value; labor market outcomes; multilingualism; migration integration; productivity; language education; global workforce; national competitiveness. (search for similar items in EconPapers)
JEL-codes: I23 I25 O31 (search for similar items in EconPapers)
Date: 2023
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