Language proficiency and labour market performance of immigrants in the UK

This paper uses two recent UK surveys to investigate the determinants of language proficiency and the effect of language on earnings and employment probabilities of non-white immigrants. We address the problem of endogenous choice of language acquisition and measurement error in language variables. Our results show that language acquisition, employment probabilities, as well as earnings differ widely across non-white immigrants, according to their ethnic origin. Language proficiency has a positive effect on employment probabilities, and lack of English fluency leads to earning losses.