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

47 Pages Posted: 28 Dec 2013 Last revised: 19 May 2022

See all articles by Alfonso Miranda

Alfonso Miranda

Keele University - School of Economic and Management Studies; Institute for the Study of Labor (IZA)

Yu Zhu

University of Kent - Department of Economics

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

JEL Classification: J15, J31, J61, C21

Suggested Citation

Miranda, Alfonso and Zhu, Yu, The Causal Effect of Deficiency at English on Female Immigrants' Labor Market Outcomes in the UK. IZA Discussion Paper No. 7841, Available at SSRN: https://ssrn.com/abstract=2372550

Alfonso Miranda (Contact Author)

Keele University - School of Economic and Management Studies ( email )

United Kingdom

Institute for the Study of Labor (IZA) ( email )

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

HOME PAGE: http://www.iza.org/en/webcontent/personnel/photos?key=2804

Yu Zhu

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom

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