The Value of Second Language Skills on Labour Market (An Analysis from the Economic Perspective)

Abstract

Students are increasingly mobile and often need to communicate across different languages in today’s globalized world. Learning a new language is an investment in human capital. Economic studies have shown that fluency in a dominant language is important to economic success and increases economic efficiency. However, maintaining linguistic diversity also has value since language is also an expression of people’s culture. A dominant language enables people to communicate with others in the same region or country, and having a common international language extends that ability beyond national boundaries. Learning the dominant or common language is a good investment in human capital, but people also value their native language and want to preserve it. There is a trade-off between the two objectives, but they can be pursued together if more people become bilingual or multilingual. When the experts evaluate the costs of investment in second languages as elements of human capital there arises a number of difficulties. Individuals getting an education usually endure some costs: those connected with expenditure on books, tuition, video films, etc., and, naturally forgone expenditures (go without something desirable). The first type of cost involves direct expenditure on school materials, though not nil, being relatively minor and can be assumed away (that meanwhile would not result in a major difference in the estimating rates of return in the nearest or in the remotest future). The second cost that concerns forgone expenditures, in the terms of the cost for second language skills tend to zero for learners under legal working age.