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Nonparametric Bounds on the Returns to Language Skills

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  • Gonzalez, Libertad

    ()
    (Universitat Pompeu Fabra)

Abstract

This paper applies the theoretical literature on nonparametric bounds on treatment effects to the estimation of how limited English proficiency (LEP) affects wages and employment opportunities for Hispanic workers in the United States. I analyze the identifying power of several weak assumptions on treatment response and selection, and stress the interactions between LEP and education, occupation and immigration status. I show that the combination of two weak but credible assumptions provides informative upper bounds on the returns to language skills for certain subgroups of the population. Adding age at arrival as a monotone instrumental variable also provides informative lower bounds.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1098.

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Length: 51 pages
Date of creation: Mar 2004
Date of revision:
Publication status: published in: Journal of Applied Econometrics, 2005, 20 (6), 771-795
Handle: RePEc:iza:izadps:dp1098

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Keywords: nonparametric bounds; language skills; Hispanic workers; labor market outcomes;

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References

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  1. Geoffrey Carliner, 1995. "The Language Ability of U.S. Immigrants: Assimilation and Cohort Effects," NBER Working Papers 5222, National Bureau of Economic Research, Inc.
  2. John V. Pepper, 2000. "The Intergenerational Transmission Of Welfare Receipt: A Nonparametric Bounds Analysis," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 472-488, August.
  3. Manski, C.F., 1996. "Monotone Treatment Response," Working papers, Wisconsin Madison - Social Systems 9604, Wisconsin Madison - Social Systems.
  4. Berman, Eli & Lang, Kevin & Siniver, Erez, 2003. "Language-skill complementarity: returns to immigrant language acquisition," Labour Economics, Elsevier, Elsevier, vol. 10(3), pages 265-290, June.
  5. Manski, C.F., 1992. "Identification Problems in the Social Sciences," Working papers, Wisconsin Madison - Social Systems 9217, Wisconsin Madison - Social Systems.
  6. McManus, Walter S, 1985. "Labor Market Costs of Language Disparity: An Interpretation of Hispanic Earnings Differences," American Economic Review, American Economic Association, American Economic Association, vol. 75(4), pages 818-27, September.
  7. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 13(2), pages 246-88, April.
  8. Manski, C.F. & Nagin, D.S., 1995. "Bounding Disagreements About Treatment Effects: A Case Study of Sentencing and Recidivism," Working papers, Wisconsin Madison - Social Systems 9526, Wisconsin Madison - Social Systems.
  9. Manski, C.F., 1989. "Nonparametric Bounds On Treatment Effects," Working papers, Wisconsin Madison - Social Systems 8909, Wisconsin Madison - Social Systems.
  10. Dustmann, C. & Soest, A.H.O. van, 1998. "Language Fluency and Earnings: Estimation with Misclassified Language Indicators," Discussion Paper, Tilburg University, Center for Economic Research 1998-120, Tilburg University, Center for Economic Research.
  11. Geoffrey Carliner, 1996. "The Wages and Language Skills of U.S. Immigrants," NBER Working Papers 5763, National Bureau of Economic Research, Inc.
  12. Hoyt Bleakley & Aimee Chin, 2004. "Language Skills and Earnings: Evidence from Childhood Immigrants," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 481-496, May.
  13. Kossoudji, Sherrie A, 1988. "English Language Ability and the Labor Market Opportunities of Hispanic and East Asian Immigrant Men," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 6(2), pages 205-28, April.
  14. Manski, C.F. & Sandefur, G.D. & Mclanahan, S. & Powers, D., 1990. "Alternative Estimates Of The Effect Of Family Stucture During Adolescence On Hight School Graduation," Working papers, Wisconsin Madison - Social Systems 90-31, Wisconsin Madison - Social Systems.
  15. Charles F. Manski & John V. Pepper, 1998. "Monotone Instrumental Variables with an Application to the Returns to Schooling," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0224, National Bureau of Economic Research, Inc.
  16. McManus, Walter & Gould, William & Welch, Finis, 1983. "Earnings of Hispanic Men: The Role of English Language Proficiency," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 1(2), pages 101-30, April.
  17. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-79, November.
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Citations

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Cited by:
  1. Gerfin, Michael & Schellhorn, Martin, 2005. "Nonparametric Bounds on the Effect of Deductibles in Health Care Insurance on Doctor Visits – Swiss Evidence," IZA Discussion Papers 1616, Institute for the Study of Labor (IZA).
  2. repec:dgr:uvatin:2008061 is not listed on IDEAS
  3. Antonio Di Paolo & Josep Lluís Raymond, 2012. "Language knowledge and earnings in Catalonia," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 89-118, May.
  4. Rosangela Bando & Xia Li, 2014. "The Effect of In-Service Teacher Training on Student Learning of English as a Second Language," IDB Publications 86173, Inter-American Development Bank.
  5. Monique de Haan, 2008. "The Effect of Parents' Schooling on Child's Schooling: A Nonparametric Bounds Analysis," Tinbergen Institute Discussion Papers, Tinbergen Institute 08-061/3, Tinbergen Institute.
  6. Victor Chernozhukov & Sokbae Lee & Adam M. Rosen, 2013. "Intersection Bounds: Estimation and Inference," Econometrica, Econometric Society, Econometric Society, vol. 81(2), pages 667-737, 03.
  7. Stefan Boes, 2009. "Bounds on Counterfactual Distributions Under Semi-Monotonicity Constraints," SOI - Working Papers, Socioeconomic Institute - University of Zurich 0920, Socioeconomic Institute - University of Zurich.
  8. Lafférs, Lukáš, 2013. "A note on bounding average treatment effects," Economics Letters, Elsevier, Elsevier, vol. 120(3), pages 424-428.
  9. Richey, Jeremiah, 2013. "An Odd Couple: Monotone Instrumental Variables and Binary Treatments," MPRA Paper 54785, University Library of Munich, Germany, revised 06 Nov 2013.

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