English skills and early labour market integration: Evidence from humanitarian migrants in Australia

This paper uses panel data from the Building a New Life in Australia survey to examine the relationship between proficiency in English and labour market outcomes among humanitarian migrants. We show that having better general or speaking skills in English is associated with a higher propensity for participation in the labour force and success in getting a job. We also find that participating in an English training programme is strongly and positively associated with gaining better language skills. Among the channels leading to these outcomes, we find that self-esteem, self-efficacy and general health partially mediate the relationship between English proficiency and labour force participation. Self-efficacy, general health status and indicative serious mental illness also partially mediate the relationship between better English proficiency and the chance of getting a job.