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Common tongue: The impact of language on economic performance

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  • Jain, Tarun

Abstract

This paper investigates the impact of language on economic performance. I use the 1956 reorganization of Indian states on linguistic lines as a natural experiment to estimate the impact of speaking the majority language on educational and occupational outcomes. I find that districts that spoke the majority language of the state during colonial times enjoy persistent economic benefits, as evidenced by higher educational achievement and employment in communication intensive sectors. After reorganization, historically minority language districts experience greater growth in educational achievement, indicating that reassignment could reverse the impact of history.

Suggested Citation

  • Jain, Tarun, 2011. "Common tongue: The impact of language on economic performance," MPRA Paper 34423, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34423
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    Cited by:

    1. Jain, Tarun & Maitra, Pushkar & Mani, Subha, 2019. "Barriers to skill acquisition: Evidence from English training in India," World Development, Elsevier, vol. 114(C), pages 314-325.

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    More about this item

    Keywords

    Language; Communication costs; Education; Occupational choice; Reorganization of Indian states;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • N95 - Economic History - - Regional and Urban History - - - Asia including Middle East

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