ABSTRACT

It has become recognized in recent years that an important aspect of the overall adjustment of immigrants in the labor market is their linguistic adjustment.2 Linguistic adjustment refers to the process by which immigrants who are not fluent in the destination’s dominant language improve their fluency. Linguistic adjustment influences labor market outcomes, such as earnings. Previous research studies in this area have used ad hoc models and have not adequately addressed the issue of the extent to which language skills and earnings are mutually determined for immigrants.