The Impact of Language Proficiency on Immigrants' Earnings in Spain
Santiago Budria Rodriguez () and
Pablo Swedberg ()
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Pablo Swedberg: St. Louis University
No 6957, IZA Discussion Papers from Institute of Labor Economics (IZA)
This article uses micro-data from the Spanish National Immigrant Survey to investigate the impact of Spanish language proficiency on immigrants' earnings. The results, based on Instrumental Variables (IV), point to a substantial earnings return to Spanish proficiency, of approximately 27%. This figure varies largely across educational groups, with high-qualified workers earning a premium of almost 50%. This conspicuous complementarity between formal qualifications and language skills poses a challenge for traditional language training policies, for these typically neglect the immigrants' heterogeneous educational background.
Keywords: instrumental variables; immigration; Spanish language proficiency; earnings (search for similar items in EconPapers)
JEL-codes: F22 J24 J61 (search for similar items in EconPapers)
Pages: 26 pages
New Economics Papers: this item is included in nep-eur, nep-lab, nep-lma and nep-mig
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Published in: Revista de Economía Aplicada, 2015, 23 (67), 63-91
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp6957
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