Language Usage, Participation, Employment and Earnings - Evidence for Foreigners in West Germany with Multiple Sources of Selection

32 Pages Posted: 26 Nov 2008

See all articles by Alisher Aldashev

Alisher Aldashev

ZEW – Leibniz Centre for European Economic Research

Johannes Gernandt

Center for European Economic Research (ZEW)

Stephan L. Thomsen

Leibniz Universität Hannover - Institute of Economics; IZA Institute of Labor Economics; ZEW – Leibniz Centre for European Economic Research - Labour Markets, Human Resources and Social Policy Department

Date Written: 2008

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.

Keywords: Foreigners, Participation, Employment, Language Ability, Multiple Selection

JEL Classification: J61, J24, J15, C35

Suggested Citation

Aldashev, Alisher and Gernandt, Johannes and Thomsen, Stephan Lothar, Language Usage, Participation, Employment and Earnings - Evidence for Foreigners in West Germany with Multiple Sources of Selection (2008). ZEW - Centre for European Economic Research Discussion Paper No. 08-090, Available at SSRN: https://ssrn.com/abstract=1307646 or http://dx.doi.org/10.2139/ssrn.1307646

Alisher Aldashev (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Johannes Gernandt

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Stephan Lothar Thomsen

Leibniz Universität Hannover - Institute of Economics ( email )

United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

ZEW – Leibniz Centre for European Economic Research - Labour Markets, Human Resources and Social Policy Department ( email )

P.O.Box 10 34 43
D-68034
Germany

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