@TechReport{iza:izadps:dp18421, author={Aydemir, Abdurrahman B. and Girisken, Ahmet}, title={Language Skills and Labor Market Outcomes of Immigrants in Europe}, year={2026}, month={Feb}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={18421}, url={https://www.iza.org/index.php/publications/dp18421}, abstract={This paper studies the causal impact of language skills on human capital accumulation, labor market outcomes, and job characteristics of childhood immigrants across European countries. Using PIAAC data, we adopt an instrumental variable strategy based on the critical age hypothesis and linguistic distance. Our IV results show that higher language proficiency boosts human capital accumulation through formal schooling and actual labor market experience, resulting in improved labor market outcomes in terms of earnings and hours of work. Language proficiency also affects job tasks, increasing employment of reading and abstract tasks while decreasing physical work, and reduces education-job mismatch. These results indicate that language proficiency plays a significant role in enhancing productivity of immigrants in the European context.}, keywords={immigration;language proficiency;labor market;job tasks;PIAAC}, }