From engineer to taxi driver? Language proficiency and the occupational skills of immigrants

Abstract

We examine the ability of immigrants to transfer the occupational human capital they acquired prior to immigration. We first augment a model of occupational choice to study the implications of language proficiency on the cross-border transferability of occupational human capital. We then explore the empirical predictions using information about the skill requirements from O Å NET and a unique dataset that includes both the last source country occupation and the first four years of occupations in Canada. We supplement the analysis using Census estimates for the same cohort with source country occupational skill requirements predicted using detailed human capital related information such as field of study. We find that male immigrants to Canada were employed in source country occupations that typically require high levels of cognitive skills, but rely less intently on manual skills. Following immigration, they find initial employment in occupations that require the opposite. Consistent with the hypothesized From engineer to taxi driver? 915 asymmetric role of language in the transferability of previously acquired cognitive and manual skills, these discrepancies are larger among immigrants with limited language fluency. Résumé. D'ingénieur à chauffeur de taxi? Les aptitudes linguistiques et les compétences professionnelles des immigrants.Dans cet article, nous avons étudié la capacité des immigrants à transférer leur capital humain professionnel développé avant leur immigration. Tout d'abord, nous avons élaboré un modèle augmenté de choix professionnels afin d'étudier l'incidence des aptitudes linguistiques sur la transférabilité transfrontalière du capital humain professionnel. Nous avons ensuite exploré les prévisions empiriques en utilisant les données du système O Å NET ainsi qu'un ensemble de données uniques présentant à la fois le dernier poste occupé dans le pays de départ et les quatre premières années en emploi au Canada. Nous avons complété cette analyse en utilisant les estimations du recensement correspondant à cette même population afin d'évaluer les qualifications professionnelles requises dans le pays d'origine en tenant compte de diverses informations détaillées relatives au capital humain, notamment le domaine d'étude. Nous avons découvert que dans leur pays d'origine, les immigrants de sexe masculin au Canada étaient employés dans des domaines professionnels nécessitant habituellement des compétences cognitives de haut niveau et ne reposant pas sur des compétences manuelles. Suite à leur immigration, ils trouvent leur premier emploi dans des domaines professionnels nécessitant des compétences manuelles ne reposant pas sur des compétences cognitives. Conformément à l'hypothèse du rôle asymétrique de la langue dans la transférabilité des compétences manuelles et cognitives acquises avant l'immigration, ces différences sont plus importantes parmi les immigrants aux compétences linguistiques limitées.JEL classification: J24, J31, J61, J62, J71, J80

Language proficiency and immigrants’ economic integration

“…It follows that language, in addition to being a component of human capital, is also key to facilitating the transmission of other components [8]. Indeed, there is evidence that the immigrant/native-born earnings gap is mostly eliminated after controlling for an objective measure of language proficiency [9].…”

Preference vs Constraints: Generational Transmission of Immigrant Entrepreneurship

“…I operationalize the degree of labor market frictions ethnic groups face by using the linguistic distance measure constructed by Wacziarg and Spolaore (2009). Previous studies have shown how linguistic distance proxies for skill transferability Miller 2012, Imai, Stacey andWarman 2014). Kim and Morgan (2018) in particular use the measure to proxy for the inability signal precisely and show how the most highly educated, linguistically distant first-generation immigrants are most likely to disproportionately sort into selfemployment.…”

“…I operationalize this comparison employing a measure of linguistic distance (Fearon 2003, Wacziarg andSpolaore 2009). This measure based on the language of the father's origin country has been previously used to assess skill mismatch or the degree of labor market transferability immigrants face, which are mitigated with time spent in the U.S. (Chiswick and Miller 2012, Imai, Stacey and Warman 2014, Kim and Morgan 2018. I find that, indeed, the smaller gap is driven by linguistically distant ethnic groups, even when comparing immigrants within the same continent of origin.…”

“…Wacziarg and Spolaore 2009, Fearon 2003). Studies show that measures of linguistic distance can more broadly proxy for the degree of labor market frictions such as skill transferability (e.g Chiswick and Miller 2012, Imai et al 2014. or linguistic-cultural differences (Kim and Morgan 2018).…”

Immigrant Wage Growth in the United States: The Role of Occupational Upgrading

“…de Matos (2012) shows reduced-form evidence on immigrants moving to more productive firms over time using linked employer-employee data from Portugal. Imai et al (2019) use Canadian data to show that home country occupation predicts immigrants' wage growth, but the authors do not explicitly consider occupational upgrading within Canada or quantify the effects of home country occupation on immigrants' wage path. In the U.S. context, Akresh (2008) documents the degree of occupational downgrading when immigrants enter the United States and the resulting occupational upgrading after arrival.…”