Occupational language requirements and the value of English in the US labor market

Abstract

This paper is concerned with the English-language requirements of occupations in the USA, as measured by the O*NET database. These scores are linked to employed native and foreign-born men in the 2000 Census. Earnings increase with the respondent’s proficiency in English, with the English proficiency required for the occupation, and when those with high levels of proficiency work in jobs requiring English-language skills (interaction effect). There is a strong economic incentive for the matching of worker’s English skills and the occupation’s requirements, and this matching tends to occur in the labor market.