TY - RPRT AU - Budría, Santiago AU - Swedberg, Pablo TI - The Impact of Language Proficiency on Immigrants' Earnings in Spain PY - 2012/Oct/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 6957 UR - https://www.iza.org/index.php/publications/dp6957 AB - 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. KW - instrumental variables KW - immigration KW - Spanish language proficiency KW - earnings ER -