Employability and Labor Income of Immigrants in the US: A Special Focus on the Roles of Language and Home Country Income Level
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Jun 13, 2022
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Abstract
Speaking the most-demanded languages is an asset in the labor market. However, coming from a high-income country may give immigrants an advantage in the labor market as those may have more transferable skills. This article investigates the determinants of the employability and labor income of immigrants and newcomer immigrants in the United States (US) labor market, specifically focusing on the role of language and income level of the home country. It applies the Heckman two-step selection procedure to the American Community Survey between 2000 and 2019. The findings show that immigrating from both high-income countries and countries where internationally most widely used languages (English, French, Portuguese, Spanish, and Chinese) are spoken gives immigrants an advantage in the US labor market compared to those from the countries where only national languages are spoken. This article emphasizes the key role of the income level of the home country on immigrants' labor income in the US. It contributes to the literature by employing the interaction terms of being from the same-income-level countries and the same-languages-speaking countries.
JEL classification: F22, J15, J61
Keywords: Employability, Foreign language knowledge, Income level of home country, Immigrants, Labor income
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Dudu, S. (2022) “Employability and Labor Income of Immigrants in the US: A Special Focus on the Roles of Language and Home Country Income Level”, World Journal of Applied Economics, 8(1), pp. 15-34. doi: 10.22440/wjae.8.1.2.
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References
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Dudu, S. (2022). Employment Status and Labour Income of Turkish and Other Immigrants in the United States. Migration Letters, 19, 235-45. doi:10.33182/ml.v19i2.1924
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Duleep, H. O., & Regets, M. C. (2002). The Elusive Concept of Immigrant Quality: Evidence from 1970-1990. IZA Discussion Papers.
Dustmann, C., & Fabbri, F. (2003). Language Proficiency and Labour Market Performance of Immigrants in the UK. The Economic Journal, 113, 695-717. doi:10.1111/1468-0297.t01-1-00151
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Bauer, T. K., & Zimmermann, K. F. (1995). Modelling International Migration: Economic and Econometric Issues. In R. v. Erf, & L. Heering (Eds.), Causes of International Migration (pp. 95-115). Eurostat.
Becker, G. S. (1971). The Economics of Discrimination. The University of Chicago.
Becker, G. S. (1993). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. University of Chicago Press.
Beine, M., Docquier, F., & Ozden, C. (2010). Diaspora Effects in International Migration: Key Questions and Methodological Issues. Swiss Society of Economics and Statistics, 146, 639-59. doi:10.1007/BF03399331
Bell, B. D. (1997). The Performance of Immigrants in the United Kingdom: Evidence from the GHS. The Economic Journal, 107, 333-44. doi:10.1111/j.0013-0133.1997.161.x
Bellante, D., & Kogut, C. A. (1998). Language Ability, US Labor Market Experience and the Earnings of Immigrants. International Journal of Manpower, 19, 319-30. doi:10.1108/01437729810221995
Bertrand, M., & Mullainathan, S. (2004). Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination. The American Economic Review, 94, 991-1013. doi:10.1257/0002828042002561
Bloemen, H. G., & Stancanelli, E. G. (2001). Individual Wealth, Reservation Wages, and Transitions into Employment. Journal of Labor Economics, 19, 400-39. doi:10.1086/319566
Borjas, G. J. (1987). Self-Selection and the Earnings of Immigrants. The American Economic Review, 77, 531-53.
Bruno, R. (2015). New Models of Worker Representation. Labor Studies Journal, 40, 5-7. doi:10.1177/0160449X15579766
Carliner, G. (1981). Wage Differences by Language Group and the Market for Language Skills in Canada. The Journal of Human Resources, 16, 384-99. doi:10.2307/145627
Carling, J. (2002). Migration in the Age of Involuntary Immobility: Theoretical Reflections and Cape Verdean Experiences. Journal of Ethnic and Migration Studies, 28, 5-42. doi:10.1080/13691830120103912
Chiswick, B. R. (1978). The Effect of Americanization on the Earnings of Foreign-born Men. Journal of Political Economy, 86, 897-921. doi:10.1086/260717
Chiswick, B. R. (1998). Hebrew Language Usage: Determinants and Effects on Earnings among Immigrants in Israel. Journal of Population Economics, 11, 253-71. doi:10.1007/s001480050068
Chiswick, B. R. (2008). The Economics of Language: An Introduction and Overview. IZA Discussion Papers.
Chiswick, B. R., & Miller, P. W. (2015). International Migration and the Economics of Language. In &. P. B. Chiswick (Ed.), Handbook of the Economics of International Migration, Volume 1A (pp. 211-69). Elsevier. doi:10.1016/B978-0-444-53764-5.00005-0
Chiswick, B. R., & Miller, P. W. (2018). Do Native-Born Bilinguals in the US Earn More? Review of Economics of the Household, 16, 563-83. doi:10.1007/s11150-017-9398-5
Coen, A. D., Forrier, A., & Sels, L. (2010). The Impact of Age on the Reservation Wage: The Role of Employability. Leuven Katholieke Universiteit Department of Marketing and Organisation Study Working Paper. doi:10.2139/ssrn.1620368
Colakoglu, S., Yunlu, D. G., & Arman, G. (2018). High-Skilled Female Immigrants: Career Strategies and Experiences. Journal of Global Mobility, 6, 258-84. doi:10.1108/JGM-10-2017-0039
Constant, A. F., & Massey, D. S. (2005). Labor Market Segmentation and the Earnings of German Guestworkers. Population Research and Policy Review, 24, 489-512. doi:10.1007/s11113-005-4675-z
Constant, A. F., Krause, A., Rinne, U., & Zimmerman, K. F. (2017). Reservation Wages of First- and Second-Generation Migrants. Applied Economics Letters, 24, 1-5. doi:10.1080/13504851.2016.1243203
Damari, R. R., Rivers, W. P., Brecht, R. D., Gardner, P., Pulupa, C., & Robinson, J. (2017). The Demand for Multilingual Human Capital in the U.S. Labor Market. Foreign Language Annals, 50, 13-37. doi:10.1111/flan.12241
Dudu, S. (2022). Employment Status and Labour Income of Turkish and Other Immigrants in the United States. Migration Letters, 19, 235-45. doi:10.33182/ml.v19i2.1924
Duleep, H. O., & Dowhan, D. J. (2008). Research on Immigrant Earnings. Social Security Bulletin, 68, 31-50.
Duleep, H. O., & Regets, M. C. (2002). The Elusive Concept of Immigrant Quality: Evidence from 1970-1990. IZA Discussion Papers.
Dustmann, C., & Fabbri, F. (2003). Language Proficiency and Labour Market Performance of Immigrants in the UK. The Economic Journal, 113, 695-717. doi:10.1111/1468-0297.t01-1-00151
Fleischmann, F., & Dronkers, J. (2010). Unemployment among Immigrants in European Labour Markets: An Analysis of Origin and Destination Effects. Work, Employment and Society, 24, 337-54. doi:10.1177/0950017010362153
Flubacher, M.-C., Duchene, A., & Coray, R. (2018). Language Investment and Employability: The Uneven Distribution of Resources in the Public Employment Service. Palgrave Macmillan, Switzerland. doi:10.1007/978-3-319-60873-0
Fought, C. (2011). Language and Ethnicity. In R. Mesthrie (Ed.), The Cambridge Handbook of Sociolinguistic (pp. 238-58). Cambridge University Press.
Fry, R., & Lowell, B. L. (2003). The Value of Bilingualism in the U.S. Labor Market. Industrial and Labor Relations Review, 57, 128-40. doi:10.1177/001979390305700107
Gazier, B. (1998). Observations and Recommendations. In B. Gazier (Ed.), Employability —Concepts and Policies (pp. 298-315). European Employment Observatory, Berlin.
Graddol, D. (1999). The Future of English? A Guide to Forecasting the Popularity of the English Language in the 21st Century. British Council, London.
Gradirovski, S., & Esipova, N. (2008). Russian Language Enjoying a Boost in Post-Soviet States. Russian Language Enjoying a Boost in Post-Soviet States.
Green, A., de Hoyos, M., Barnes, S.-A., Owen, D., Baldauf, B., & Behle, H. (2013). Literature Review on Employability, Inclusion and ICT, Report 1: The Concept of Employability with a Specific Focus on Young People, Older Workers and Migrants. Institute for Prospective Technological Studies, Joint Research Centre. Seville: European Commission.
Hill, N., McGregory, R., & Peoples, J. (2018). Noncitizen Employment and the Wages of Healthcare Support Workers in the US. Journal of Labor Research, 39, 433-61. doi:10.1007/s12122-018-9276-9
Hwang, S.-S., Xi, J., & Cao, Y. (2010). The Conditional Relationship between English Language Proficiency and Earnings among US Immigrants. Ethnic and Racial Studies, 33, 1620-47. doi:10.1080/01419871003642375
Ikpebe, E., & Seeborg, M. C. (2018). Earnings Performance of African Immigrants: Evidence from the American Community Survey. Atlantic Economic Journal, 46, 215-30. doi:10.1007/s11293-018-9583-9
IPUMS USA. (2021). 2018-Onward Occupation Codes. 2018-Onward Occupation Codes.
Jasso, G., & Rosenzweig, M. R. (1985). What's in a Name? Country-of-Origin Influences on the Earnings of Immigrants in the United States. University of Minnesota Economic Development Center Bulletins. doi:10.22004/ag.econ.8424
Johnston, R., Khattab, N., & Manley, D. (2015). East versus West? Over-Qualification and Earnings among the UK's European Migrants. Journal of Ethnic and Migration Studies, 41, 196-218. doi:10.1080/1369183X.2014.935308
Kahanec, M. (2013). Labor Mobility in an Enlarged European Union. In A. F. Constant, & K. F. Zimmermann (Eds.), International Handbook on the Economics of Migration (pp. 137-53). Edward Elgar, Cheltenham.
Kahanec, M., Zimmermann, K. F., Kureková, L., & Biavaschi, C. (2013). Labour Migration from EaP Countries to the EU- Assessment of Costs and Benefits and Proposals for Better Labour Market Matching. IZA Research Report.
King, J. E. (1990). Labour Economics. Macmillan Education, New York.
Kivi, L. H., Somer, M., & Kallaste, E. (2020). Language Training for Unemployed Non-Natives: Who Benefits the Most? Baltic Journal of Economics, 20, 34-58. doi:10.1080/1406099X.2020.1740403
Leckcivilize, A., & Straub, A. (2018). Headscarf and Job Recruitment—Lifting the Veil of Labour Market Discrimination. IZA Journal of Labor Economics, 7, 1-32. doi:10.1186/s40172-018-0071-x
Liebig, T. (2007). The Labour Market Integration of Immigrants in Denmark. OECD Social, Employment and Migration Working Papers.
Lucas, T., Barkho, E., Rudolph, C., Zhdanova, L., Fakhouri, M., & Thompson, L. (2014). Political Affiliation, Collective Self-Esteem and Perceived Employability of Immigrants: Inducing National Identity Polarizes Host-Nation Employers. International Journal of Intercultural Relations, 39, 136-51. doi:10.1016/j.ijintrel.2013.11.001
Mancinelli, S., Mazzanti, M., Piva, N., & Ponti, G. (2010). Education, Reputation or network? Evidence on Migrant Workers Employability. The Journal of Socio-Economics, 39, 64-71. doi:10.1016/j.socec.2009.08.002
Maskileyson, D. (2019). Health Trajectories of Immigrants in the United States: Does Income Inequality of Country of Origin Matter? Social Science & Medicine, 230, 246-55. doi:10.1016/j.socscimed.2019.04.032
Mattoo, A., Neagu, I. C., & Ozden, C. (2008). Brain waste? Educated Immigrants in the US Labor Market. Journal of Development Economics, 87, 255-69. doi:10.1016/j.jdeveco.2007.05.001
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