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.
- English as Additional Language (EAL)
- endogenous treatment
- sample selection
- wage gap