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Language and urban labor market segmentation: Theory and evidence

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  • Li, Qiang

Abstract

I propose a language theory of labor market segmentation. People of different language origins form separate urban labor submarkets and can switch between submarkets. Two types of wage differentials emerge, namely the Within-Labor-Market Wage Gap and the Within-Language-Group Wage Gap. The average wage in each market and a worker’s choice of the labor market depend on the population sizes of the relevant groups. These implications are tested using the 2001 Census of Canada Public Use Microdata. A unique feature of these data is the reported work language, which helps me to identify labor market segments. The empirical evidence supports my theory.

Suggested Citation

  • Li, Qiang, 2013. "Language and urban labor market segmentation: Theory and evidence," Journal of Urban Economics, Elsevier, vol. 74(C), pages 27-46.
    • Handle: RePEc:eee:juecon:v:74:y:2013:i:c:p:27-46
    DOI: 10.1016/j.jue.2012.07.001
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    3. Zenou, Yves & Itoh, Ryo & Sato, Yasuhiro, 2021. "Intergenerational Assimilation of Minorities: The Role of the Majority Group," CEPR Discussion Papers 16830, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    Language; Labor market segmentation; Matching;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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