April 2013

IZA DP No. 7366: Language Proficiency of Migrants: The Relation with Job Satisfaction and Matching

We empirically analyze the language proficiency of migrants in the Netherlands. Traditionally, the emphasis in studying language proficiency and economic outcomes has been on the relation between earnings and indicators for language proficiency, motivated by the human capital theory. Here we analyze whether there is a relation between proficiency of the destination language and job level. A lack of language skills may induce the migrant to work in jobs of a lower level leading to lower job satisfaction. We use subjective survey information about job satisfaction and the fit between the migrant's education and skill level and the job. We also use objective information on professional level. For men, we find evidence for a positive relationship between indicators for language proficiency and satisfaction with work type and professional level.