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Earnings And Linguistic Proficiency In A Bilingual Economy

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  • ANDREW HENLEY
  • RHIAN ELERI JONES

Abstract

Bilingualism is a widespread phenomenon, yet its economic effects are under researched. Typically studies find that bilingual workers are disadvantaged. Governments often protect minority languages through official promotion of bilingualism, with potential economic consequences. This paper addresses the impact of bilingualism on earnings, using the example of Wales. Results show a positive raw differential of 8 to 10 per cent depending on definition of linguistic proficiency. This differential persists in earnings function estimates, which control for human capital and demographic characteristics as well as local area effects. The potential endogeneity of language choice and earnings is addressed through the use of appropriate instrumental variables. Results suggest that bilingualism may be exogenous to the determination of earnings. Copyright Blackwell Publishing Ltd and The Victoria University of Manchester, 2005..

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Bibliographic Info

Article provided by University of Manchester in its journal The Manchester School.

Volume (Year): 73 (2005)
Issue (Month): 3 (06)
Pages: 300-320

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Handle: RePEc:bla:manchs:v:73:y:2005:i:3:p:300-320

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Cited by:
  1. Melanie K. Jones, 2004. "Rural labour markets: the welsh example," Local Economy, Taylor and Francis Journals, vol. 19(3), pages 226-248, August.
  2. Donald R. Williams, 2011. "Multiple language usage and earnings in Western Europe," International Journal of Manpower, Emerald Group Publishing, vol. 32(4), pages 372-393, July.
  3. Williams, Donald R., 2006. "The Economic Returns to Multiple Language Usage in Western Europe," IRISS Working Paper Series 2006-07, IRISS at CEPS/INSTEAD.
  4. Muravyev, Alexander & Talavera, Oleksandr, 2010. "Can State Language Policies Distort Students' Demand for Higher Education?," IZA Discussion Papers 5411, Institute for the Study of Labor (IZA).
  5. Sílvio Rendon, 2007. "The Catalan premium: language and employment in Catalonia," Journal of Population Economics, Springer, vol. 20(3), pages 669-686, July.
  6. Juan Carlos Jiménez Redondo, 2006. "La Economía de la lengua: una visión de conjunto," Documentos de Trabajo del Instituto Complutense de Estudios Internacionales 01-06, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.

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