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
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
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