Language Usage, Participation, Employment and Earnings

Alisher Aldashev, Johannes Gernandt () and Stephan Thomsen

No 7018, FEMM Working Papers from Otto-von-Guericke University Magdeburg, Faculty of Economics and Management

Abstract: Language ability may not only affect the earnings of the individual, but the participation to participate in the labor market or becoming employed as well. It may also affect selection of people into economic sectors and occupation. In this paper the effects of language ability on earnings are analyzed for foreigners in Germany with joint consideration of up to four types of self-selection. The results show that language profciency signifcantly increases participation and employment probability and affects earnings directly. However, when self-selection into economic sectors and occupation is regarded, the direct effects of language ability on earnings vanish.

Keywords: Migration; Language Ability; Multiple Selection; Selection Bias; Germany (search for similar items in EconPapers)
JEL-codes: I12 J15 J61 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2007-09
New Economics Papers: this item is included in nep-lab and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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