%0 Report %A Budría, Santiago %A Swedberg, Pablo %T The Impact of Language Proficiency on Immigrants' Earnings in Spain %D 2012 %8 2012 Oct %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 6957 %U https://www.iza.org/index.php/publications/dp6957 %X This article uses micro-data from the Spanish National Immigrant Survey to investigate the impact of Spanish language proficiency on immigrants' earnings. The results, based on Instrumental Variables (IV), point to a substantial earnings return to Spanish proficiency, of approximately 27%. This figure varies largely across educational groups, with high-qualified workers earning a premium of almost 50%. This conspicuous complementarity between formal qualifications and language skills poses a challenge for traditional language training policies, for these typically neglect the immigrants' heterogeneous educational background. %K instrumental variables %K immigration %K Spanish language proficiency %K earnings