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Earnings Differentials between German and French speakers in Switzerland

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  • Alejandra Cattaneo
  • Rainer Winkelmann

Abstract

The paper analyzes the effect of mother tongue on labor market outcomes of Swiss residents. This type of analysis can shed light on an important policy question. Is the Swiss labor market well integrated, or can one find instead segmentation along language borders? Improving on previous research in this area, we use a nationally representative household survey, the Swiss Household Panel 1999 and 2000, and we explicitly account for self-selection of workers into language areas. Overall, we find no evidence to suggest that the Swiss labor market is not perfectly integrated or that internal migrants are positively selected.

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Bibliographic Info

Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

Volume (Year): 141 (2005)
Issue (Month): II (June)
Pages: 191-212

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Handle: RePEc:ses:arsjes:2005-ii-2

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Keywords: language; labor market segmentation; Swiss household panel;

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References

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  1. Geoffrey Carliner, 1981. "Wage Differences by Language Group and the Market for Language Skills in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 16(3), pages 384-399.
  2. Augustin de Coulon, 2001. "Wage Differentials between Ethnic Groups in Switzerland," LABOUR, CEIS, vol. 15(1), pages 111-132, 03.
  3. Chiswick, Barry R & Miller, Paul M, 1996. "Ethnic Networks and Language Proficiency among Immigrants," Journal of Population Economics, Springer, vol. 9(1), pages 19-35, February.
  4. James Heckman & Justin L. Tobias & Edward Vytlacil, 2003. "Simple Estimators for Treatment Parameters in a Latent-Variable Framework," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 748-755, August.
  5. Chiswick, Barry R & Miller, Paul W, 1994. "Language Choice among Immigrants in a Multi-lingual Destination," Journal of Population Economics, Springer, vol. 7(2), pages 119-31.
  6. James J. Heckman & Justin L. Tobias & Edward Vytlacil, 2000. "Simple Estimators for Treatment Parameters in a Latent Variable Framework with an Application to Estimating the Returns to Schooling," NBER Working Papers 7950, National Bureau of Economic Research, Inc.
  7. Dustmann, Christian & Fabbri, Francesca, 2000. "Language Proficiency and Labour Market Performance of Immigrants in the UK," IZA Discussion Papers 156, Institute for the Study of Labor (IZA).
  8. Dustmann, Christian & van Soest, Arthur, 1998. "Language and the Earnings of Immigrants," CEPR Discussion Papers 2012, C.E.P.R. Discussion Papers.
  9. Calvin J. Veltman & Jac-Andre Boulet & Charles Castonguay, 1979. "The Economic Context of Bilingualism and Language Transfer in the Montreal Metropolitan Area," Canadian Journal of Economics, Canadian Economics Association, vol. 12(3), pages 468-79, August.
  10. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer, vol. 15(1), pages 31-57.
  11. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-88, April.
  12. Barry R. Chiswick, 2000. "A Model of Immigrant Language Acquisition: Application to Male Immigrants in Canada," University of Chicago - George G. Stigler Center for Study of Economy and State 149, Chicago - Center for Study of Economy and State.
  13. Barry Chiswick & Paul Miller, 2001. "A model of destination-language acquisition: Application to male immigrants in Canada," Demography, Springer, vol. 38(3), pages 391-409, August.
  14. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-94, July.
  15. Chiswick, Barry R, 1991. "Speaking, Reading, and Earnings among Low-Skilled Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 149-70, April.
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Cited by:
  1. Sílvio Rendon, 2007. "The Catalan premium: language and employment in Catalonia," Journal of Population Economics, Springer, vol. 20(3), pages 669-686, July.
  2. Antonio Di Paolo & Aysit Tansel, 2013. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1322, Koc University-TUSIAD Economic Research Forum.
  3. Kohler, Pierre, 2012. "Three essays on the economic and cultural integration of migrants in Switzerland: putting into perspective the influence of economic discrimination and of host society culture," MPRA Paper 38129, University Library of Munich, Germany.
  4. Florian Zainhofer, 2007. "Life Cycle Portfolio Choice: A Swiss Perspective," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(II), pages 187-238, June.
  5. Williams, Donald R., 2006. "The Economic Returns to Multiple Language Usage in Western Europe," IRISS Working Paper Series 2006-07, IRISS at CEPS/INSTEAD.

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