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The returns to speaking a second language

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  • Albert Saiz
  • Elena Zoido

Abstract

Does speaking a foreign language have an impact on earnings? The authors use a variety of empirical strategies to address this issue for a representative sample of U.S. college graduates. OLS regressions with a complete set of controls to minimize concerns about omitted variable biases, propensity score methods, and panel data techniques all lead to similar conclusions. The hourly earnings of those who speak a foreign language are more than 2 percent higher than the earnings of those who do not. The authors obtain higher and more imprecise point estimates using state high school graduation and college entry and graduation requirements as instrumental variables.

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Bibliographic Info

Paper provided by Federal Reserve Bank of Philadelphia in its series Working Papers with number 02-16.

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Date of creation: 2002
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Handle: RePEc:fip:fedpwp:02-16

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  1. Grenier, G. & Vaillancourt, F., 1982. "An Economic Perspective on Learning a Second Language," Cahiers de recherche 8238, Universite de Montreal, Departement de sciences economiques.
  2. Guido Imbens, 2000. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometric Society World Congress 2000 Contributed Papers 1166, Econometric Society.
  3. Joseph G. Altonji, 1995. "The Effects of High School Curriculum on Education and Labor Market Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 409-438.
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  6. Caroline M. Hoxby & Bridget Terry, 1999. "Explaining Rising Income and wage Inequality Among the College Educated," NBER Working Papers 6873, National Bureau of Economic Research, Inc.
  7. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January.
  8. Chiswick, Barry R. & Miller, Paul W., 2003. "The complementarity of language and other human capital: immigrant earnings in Canada," Economics of Education Review, Elsevier, vol. 22(5), pages 469-480, October.
  9. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
  10. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
  11. Barry R. Chiswick, 1998. "Hebrew language usage: Determinants and effects on earnings among immigrants in Israel," Journal of Population Economics, Springer, vol. 11(2), pages 253-271.
  12. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc.
  13. Geoffrey Carliner, 1995. "The Language Ability of U.S. Immigrants: Assimilation and Cohort Effects," NBER Working Papers 5222, National Bureau of Economic Research, Inc.
  14. A. E. Fernández Jilberto, 1991. "Introduction," International Journal of Political Economy, M.E. Sharpe, Inc., vol. 21(1), pages 3-9, April.
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Cited by:
  1. Chr. Hjorth-Andersen, 2006. "The Relative Importance of the European Languages," Discussion Papers 06-23, University of Copenhagen. Department of Economics.

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