ABSTRACT
We investigate how English as Additional Language (EAL) affects the wage gap among foreign-born female immigrants in the UK. To deal with endogeneity and measurement error of EAL and self-selection into employment we implement a 3-step estimation (TSE) procedure suggested by Wooldridge, which deliver consistent and asymptotically normal estimators. We find a large and statistically significant causal effect of EAL on the wage gap.
Acknowledgments
We are grateful to Jagjit Chadha, Antonio Di Paolo, Massimiliano Bratti, Amanda Gosling, Colin Green, Kai Liu, Stephen Machin, Anna Vignoles, Maria De Paola, Kjell Salvanes, Pravin K. Trivedi, João Santos Silva, Stephen Pudney, Gauthier Lanot, and Susan W. Parker for comments.
Disclosure statement
The authors declare that there is no conflict of interest.
Ethical approval
We use secondary data from the UK Household Longitudinal Survey (UKHLS), which is a longitudinal survey collected by ISER at Essex University, UK. The UKHLS has an Ethnicity Strand Advisory Committee, as well as a Scientific Advisory Committee, and complies with the 1964 Helsinki declaration and its later amendments.
Supplementary material
Supplementary material for this article can be accessed here.
Notes
1 We perform robustness checks using different ages as threshold and find similar results.