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Language and Consumption

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  • Haining Wang
  • Zhiming Cheng
  • Russell Smyth

Abstract

We examine the relationship between proficiency in Mandarin and consumption in China. We find that proficiency in Mandarin has a positive effect on an individual’s total consumption expenditure as well as most categories of consumption expenditure. We also find considerable heterogeneity in the effects of Mandarin proficiency on consumption across subsamples. In addition, we find that proficiency in Mandarin has a positive effect on relative consumption, irrespective of the manner in which the reference group is defined. Our results have important policy implications for debates on the promotion of a national language and, in particular, recent debate about the promotion of speaking Mandarin in China.

Suggested Citation

  • Haining Wang & Zhiming Cheng & Russell Smyth, 2016. "Language and Consumption," Monash Economics Working Papers 06-16, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2016-06
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    5. Wang, Haining & Cheng, Zhiming & Smyth, Russell, 2019. "Health outcomes, health inequality and Mandarin proficiency in urban China," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
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    7. Tomoki Fujii & Maki Nakajima & Sijia Xu, 2023. "Teaching in the right context: Textbook supply program, language, and learning," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 797-824, May.
    8. Liang Chen & Wanli Li, 2022. "Language acquisition and regional innovation: Evidence from English proficiency in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 178-191, January.
    9. Haining Wang & Zhiming Cheng & Russell Smyth, 2016. "Language, Health Outcomes and Health Inequality," Monash Economics Working Papers 43-16, Monash University, Department of Economics.
    10. Wang, Haining & Cheng, Zhiming & Smyth, Russell, 2018. "Do migrant students affect local students’ academic achievements in urban China?," Economics of Education Review, Elsevier, vol. 63(C), pages 64-77.
    11. Dovì, Max-Sebastian, 2019. "Does higher language proficiency decrease the probability of unemployment? Evidence from China," China Economic Review, Elsevier, vol. 54(C), pages 1-11.
    12. Zhang, Jiaping & Zhang, Huirong & Gong, Xiaomei, 2022. "Mobile payment and rural household consumption: Evidence from China," Telecommunications Policy, Elsevier, vol. 46(3).
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    14. Cheng, Zhiming & Smyth, Russell, 2021. "Education and migrant entrepreneurship in urban China," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 506-529.

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    More about this item

    Keywords

    Mandarin proficiency; consumption; human capital; China;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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