Language usage, participation, employment and earnings : evidence for foreigners in West Germany with multiple sources of selection


Aldashev, Alisher ; Gernandt, Johannes ; Thomsen, Stephan L.


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URL: http://ub-madoc.bib.uni-mannheim.de/2162
URN: urn:nbn:de:bsz:180-madoc-21623
Document Type: Working paper
Year of publication: 2008
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: J61 J24 J15 C35 ,
Subject headings (SWD): Deutschland , Einwanderer , Mehrsprachigkeit , Berufliche Integration , Einkommen
Keywords (English): Foreigners , Participation , Employment , Language Ability , Multiple Selection
Abstract: Language proficiency may not only affect the earnings of the individual, but the probability to participate in the labor market or becoming employed as well. It may also affect selection of people into economic sector and occupation. In this paper, the effects of language proficiency on earnings are analyzed for foreigners in Germany with joint consideration of up to four types of selection. The results show that language proficiency significantly increases participation and employment probability and affects occupational choice. When selection into economic sector and occupation is regarded, we do not find an impact of language ability on earnings thereby implying an indirect effect.
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Aldashev, Alisher ; Gernandt, Johannes ; Thomsen, Stephan L. (2008) Language usage, participation, employment and earnings : evidence for foreigners in West Germany with multiple sources of selection. Open Access [Working paper]
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