Have a personal or library account? Click to login
Language Proficiency and Wage Premiums: A Review of Analytical Models with Reference to Lithuania Cover

Language Proficiency and Wage Premiums: A Review of Analytical Models with Reference to Lithuania

By: Milda Kiškė  
Open Access
|Dec 2025

References

  1. Albouy, D. (2008). The wage gap between Francophones and Anglophones: A Canadian perspective, 1970–2000. Canadian Journal of Economics / Revue canadienne d’économique, 41(4), 1211–1238. https://doi.org/10.1111/j.1540-5982.2008.00500.x
  2. Aldashev, A., Gernandt, J., & Thomsen, S. L. (2009). The immigrant–native wage gap in Germany: Are East Europeans worse off? Labour Economics, 16(1), 36–48. https://doi.org/10.1016/j.labeco.2008.11.004
  3. Becker, G. S. (1993). Human capital: A theoretical and empirical analysis, with special reference to education (3rd ed.). University of Chicago Press. https://doi.org/10.7208/chicago/9780226041223.001.0001
  4. Budría, S., Colino, A., & Martínez de Ibarreta, C. (2019). The impact of host language proficiency on employment outcomes among immigrants in Spain. Empirica, 46(3), 625–652. https://doi.org/10.1007/s10663-018-9414-x
  5. Cattaneo, M. A., & Winkelmann, R. (2005). Earning differentials between German and French speakers in Switzerland. Swiss Journal of Economics and Statistics, 141(II), 191–212. https://econpapers.repec.org/article/sesarsjes/2005-ii-2.htm
  6. Chiswick, B. R., & Miller, P. W. (1995). The endogeneity between language and earnings: International analyses. Journal of Labor Economics, 13(2), 246–288. https://doi.org/10.1086/298374
  7. Di Paolo, A., & Raymond, J. L. (2012). Language knowledge and earnings in Catalonia. Regional Science and Urban Economics, 42(5), 865–878. https://doi.org/10.1016/j.regsciurbeco.2012.04.003
  8. Eurostat. (2019). Foreign language learning statistics. https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Foreign_language_learning_statistics
  9. Eurostat. (2023a). Demographic statistics: Foreign-born population – Lithuania. https://ec.europa.eu/eurostat
  10. Eurostat. (2023b). Demography of Europe – 2023 interactive edition. https://ec.europa.eu/eurostat/web/interactive-publications/demography-2023
  11. European Labour Authority (EURES). (2023). Labour shortages and surpluses 2022: Report based on data from national public employment services. https://eures.ec.europa.eu/publications/labour-shortages-and-surpluses-2022_en
  12. Gazzola, M., & Mazzacani, D. (2019). Foreign language skills and employment status of European natives: Evidence from Germany, Italy and Spain. Empirica, 46(4), 713–740. https://doi.org/10.1007/s10663-019-09460-7
  13. Grin, F., & Sfreddo, C. (1998). Language-based earnings differentials on the Swiss labour market: Is Italian a liability? International Journal of Manpower, 19(7), 520–532. https://doi.org/10.1108/01437729810237196
  14. Hahm, S., & Gazzola, M. (2022). The value of foreign language skills in the German labor market. Labour Economics, 76, 102150. https://doi.org/10.1016/j.labeco.2022.102150
  15. Isphording, I. E. (2015). Language and labor market success. In J. D. Wright (Ed.), International encyclopedia of the social & behavioral sciences (2nd ed., Vol. 13, pp. 260–265). Elsevier. https://doi.org/10.1016/B978-0-08-097086-8.94033-9
  16. Lietuvos Respublikos socialinės apsaugos ir darbo ministerija. (2018). Dėl užsieniečių teisės į socialinę integraciją ir darbo rinkos prieinamumą: Įsakymas Nr. A1-778. https://www.etar.lt/portal/lt/legalAct/cc845690052311e9a5eaf2cd290f1944
  17. Liwiński, J. (2019). The wage premium from foreign language skills. Empirica, 46(2), 251–284. https://doi.org/10.1007/s10663-019-09459-0
  18. OECD. (2016). The survey of adult skills: Reader’s companion (2nd ed.). OECD Publishing. https://doi.org/10.1787/9789264258075-en
  19. Rendon, S. (2007). The Catalan premium: Language and employment in Catalonia. Journal of Population Economics, 20(3), 669–686. https://doi.org/10.1007/s00148-005-0048-5
  20. Ridala, S. (2020). Language skills and labour market returns: A meta-regression analysis. Language Problems and Language Planning, 44(2), 200–241. https://doi.org/10.1075/lplp.20012.rid
  21. Seimas of the Republic of Lithuania. (1995–2023). Law on the State Language (Valstybinės kalbos įstatymas). https://www.lrs.lt
  22. Seimas of the Republic of Lithuania. (2004, April 29). Law on the Legal Status of Aliens (No. IX-2206). https://www.lithuanialaw.com/lithuanian-lawon-the-legal-status-of-aliens-526
  23. Shapiro, D. M., & Stelcner, M. (1997). Language and earnings in Québec: Trends over twenty years, 1970–1990. Canadian Public Policy / Analyse de Politiques, 23(2), 115–140. https://doi.org/10.2307/3551481
  24. Stöhr, T. (2015). The returns to occupational foreign language use: Evidence from Germany. Labour Economics, 32, 86–98. https://doi.org/10.1016/j.labeco.2015.01.004
  25. Toomet, O. (2011). Learn English, not the local language! Ethnic Russians in the Baltic States. American Economic Review, 101(3), 526–531. https://doi.org/10.1257/aer.101.3.526
  26. World Economic Forum. (2023). The future of jobs report 2023. https://www.weforum.org/publications/the-future-of-jobs-report-2023
  27. Zorlu, A., & Hartog, J. (2018). The impact of language on socioeconomic integration of immigrants (IZA Discussion Paper No. 11485). Institute of Labor Economics (IZA). https://www.iza.org/publications/dp/11485/the-impact-of-language-on-socioeconomic-integration-of-immigrants
DOI: https://doi.org/10.2478/sm-2025-0013 | Journal eISSN: 2335-2027 | Journal ISSN: 2335-2019
Language: English
Page range: 74 - 112
Published on: Dec 12, 2025
Published by: Vytautas Magnus University, Institute of Foreign Language
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2025 Milda Kiškė, published by Vytautas Magnus University, Institute of Foreign Language
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.