This study quantifies the disadvantage in the formation of literacy skills of immigrants that arises from the linguistic distance between mother tongue and host country language. Combining unique cross-country data on literacy scores with information on the linguistic distance between languages,...

This study examines the returns to foreign and local language skills of immigrants in the Spanish labor market. Different sources of endogeneity are addressed by deriving a set of novel instruments for language proficiency through a measure of linguistic dissimilarity. Using cross-sectional data...

We use a newly available measure of linguistic distance developed by the German Max Planck Institute for Evolutionary Anthropology to explain heterogeneity in language skills of immigrants. This measure is based on an automatical algorithm comparing pronunciation and vocabulary of language...

Linguistic distance, i.e. the dissimilarity between languages, is an important factor influencing international economic transactions such as migration or international trade flows by imposing hurdles for second language acquisition and increasing transaction costs. To measure these costs, we...

This paper investigates the transferability of human capital across countries and the contribution of imperfect human capital portability to the explanation of the immigrant-native wage gap. Using data for West Germany, our results reveal that, overall, education and labor market experience...

This paper uses data from the 2010 American Community Survey (ACS) to study the returns to language skills of child and adult migrants in the US labor market. We employ an instrumental variable strategy, which exploits differences in language acquisition profiles between immigrants from English-...

This paper combines individual-level data from the German Socio-Economic Panel (SOEP) with economic and demographic postcode-level data from administrative records to analyze the effects of immigration on wages and unemployment probabilities of high- and low-skilled natives. Employing an...

We analyse wage differentials between Higher Education graduates in the UK, differentiating between polytechnic and university graduates. Polytechnic graduates earned on average lower wages than university graduates prior to the UK Further and Higher Education Act of 1992. The reform changed the...

This study provides strong evidence for an increase in wage inequality induced by skillbiased technological change in the UK manufacturing industry between 1991 and 2006. Using individual level data from the BHPS and industry level data from the OECD, wage regressions are estimated which...

This study estimates separate selectivity bias corrected wage equations for formal and informal workers in rural and urban Mexico using data from the Mexican Family Life Survey (MxFLS). We control for diff erent potential selection patterns using Probit and Multinominal logit models in the fi...