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The Causal Effect of Deficiency at English on Female Immigrants' Labor Market Outcomes in the UK

Alfonso Miranda and Yu Zhu

No 7841, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We investigate the extent to which deficiency at English as measured by English as Additional Language (EAL), contribute to the immigrant-native wage gap for female employees in the UK, controlling for covariates. To deal with the endogeneity of EAL and a substantial problem of self-selection into employment we suggest a 3-step estimator (TSE). The properties of this estimator are investigated in a Monte Carlo simulation study and we show evidence that TSE delivers a consistent and asymptotically normal estimator. We find a large and statistically significant causal effect of EAL on the immigrant-native wage gap for women.

Keywords: endogenous treatment; immigrant-native wage gap; English as Additional Language (EAL); sample selection (search for similar items in EconPapers)
JEL-codes: C21 J15 J31 J61 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2013-12
New Economics Papers: this item is included in nep-ecm, nep-lab and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published - published as 'The Effect of Deficiency at English on Female Immigrants' Wage in the UK: Correcting for measurement error, endogenous treatment, and sample selection bias' in: Applied Economics Letters , 2021, 28 (5), 349-353

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