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English Language Training to Adult Immigrants

Introduction

The Framingham Adult ESL Plus (FAESL+) program provides English language training to over 750 immigrant students per year in Framingham, Massachusetts. Heller and Mumma (2023) estimate the impact of providing this training to adult immigrants in the US. The paper links administrative data from the FAESL+ program in the city of Framingham, MA to employer-reported earnings data. The paper exploits random variation generated by the program’s enrollment lottery to identify the program’s impact on earnings.

Pays for Itself

Net Cost

In 2019, the total direct governmental cost for a seat in an English for Speakers of Other Languages course was $2,788. The average enrollment period was 3.2 semesters, corresponding to each enrollee costing taxpayers $4,500.

Beginning 2 years after completion of an ESOL course, enrollees realize meaningful increases in their earnings that persist for at least 8 additional years. Assuming these earnings gains are maintained for the following 17 years (the average amount of time before an enrollee turns 65 years old), and a federal (state) tax rate of 8.7% (5.5%), enrollees contribute an additional $162 ($103) per year in income tax compared to their peers who did not enroll in ESOL classes due to their lottery ranking.

Enrollees are also estimated to contribute an additional $434 to FICA per year. In the paper’s preferred specification, 19% of FICA contributions are counted as benefits to taxpayers, corresponding to the rate of FICA payments that fund Medicare.

Assuming a discount rate of 3%, the net cost of the ESOL classes is negative by 20 years after initial enrollment. The estimated negative cost of the program also holds for interest rates as high as 6 percent.

$<0.0 Net Cost

Willingness to Pay

Enrollment in the FAESL+ is voluntary. This suggests that the willingness to pay is positive. The authors also note that the program has large excess demand, has positive impacts on future earnings, and is similar to language training programs provided by for-profit companies which charge for their services.

$>0.0 WTP

MVPF Summary

Assuming a positive willingness to pay, the paper estimates that the MVPF of adult ESOL courses is infinite.

MVPF

References

Blake Heller and Kirsten Slungaard Mumma (2023). “Immigrant Integration in the United States: The Role of Adult English Language Training.” American Economic Journal: Economic Policy 15(3): 407-437. DOI: https://doi.org/10.1257/pol.20210336

Policy Features

Category: Education
Beneficiary Type(s): Adults
Country of Implementation: United States
Empirical Method: Lottery
Research Type: Primary
Peer Reviewed: No
MVPF Publication Link: doi.org/10.1257/pol.20210336