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Earning Differentials between German and French Speakers in Switzerland

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  • Alejandra Cattaneo

    ()
    (Socioeconomic Institute, University of Zurich)

  • Rainer Winkelmann

    ()
    (Socioeconomic Institute, University of Zurich)

Abstract

The paper analyses 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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File URL: http://www.soi.uzh.ch/research/wp/2003/wp0309.pdf
File Function: Revised version, 2003
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Bibliographic Info

Paper provided by Socioeconomic Institute - University of Zurich in its series SOI - Working Papers with number 0309.

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Length: 27 pages
Date of creation: Sep 2003
Date of revision: Nov 2003
Publication status: Published in Swiss Journal of Economics and Statistics 141, 2005, pages 191-212
Handle: RePEc:soz:wpaper:0309

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

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References

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  1. Augustin de Coulon, 2001. "Wage Differentials between Ethnic Groups in Switzerland," LABOUR, CEIS, vol. 15(1), pages 111-132, 03.
  2. Christian Dustmann & Francesca Fabbri, 2003. "Language proficiency and labour market performance of immigrants in the UK," Economic Journal, Royal Economic Society, vol. 113(489), pages 695-717, 07.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. Heckman, J J & Tobias, Justin & Vytlacil, Ed, 2003. "Simple Estimators for Treatment Parameters in a Latent Variable Framework," Staff General Research Papers 12012, Iowa State University, Department of Economics.
  9. 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.
  10. Christian Dustmann & Arthur Van Soest, 2002. "Language and the earnings of immigrants," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(3), pages 473-492, April.
  11. 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.
  12. 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.
  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. 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.
  15. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-94, July.
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Citations

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Cited by:
  1. Antonio Di Paolo & Aysýt Tansel, 2013. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Working Papers 2013/14, Turkish Economic Association.
  2. Williams, Donald R., 2006. "The Economic Returns to Multiple Language Usage in Western Europe," IRISS Working Paper Series 2006-07, IRISS at CEPS/INSTEAD.
  3. Sílvio Rendon, 2007. "The Catalan premium: language and employment in Catalonia," Journal of Population Economics, Springer, vol. 20(3), pages 669-686, July.
  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. 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.

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