Advanced Search
MyIDEAS: Login

Returns to Foreign Language Skills in a Developing Country: The Case of Turkey

Contents:

Author Info

  • Antonio Di Paolo

    (University of Barcelona)

  • Aysýt Tansel

    (Middle East Technical University)

Abstract

Foreign language skills represent a form of human capital that can be rewarded in the labor market. Drawing on data from the Adult Education Survey of 2007, this is the first study estimating returns to foreign language skills in Turkey. We contribute to the literature on the economic value of language knowledge, with a special focus on a country characterized by fast economic and social development. Although English is the most widely spoken foreign language in Turkey, we initially consider the economic value of different foreign languages among the employed males aged 25 to 65. We find positive and significant returns to proficiency in English and Russian, which increase with the level of competence. Knowledge of French and German also appears to be positively rewarded in the Turkish labor market, although their economic value seems mostly linked to an increased likelihood to hold specific occupations rather than increased earnings within occupations. Focusing on English, we also explore the heterogeneity in returns to different levels of proficiency by frequency of English use at work, birth-cohort, education, occupation and rural/urban location. The results are also robust to the endogenous specification of English language skills.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.tek.org.tr/dosyalar/WP_language_Turkey_final.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Turkish Economic Association in its series Working Papers with number 2013/14.

as in new window
Length: 60 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:tek:wpaper:2013/14

Contact details of provider:
Postal: Hoşdere Cad. 24/4, TR-Çankaya, Ankara
Phone: (+90 312) 468 25 89
Fax: (+90 312) 468 25 99
Email:
Web page: http://www.tek.org.tr/
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Hoyt Bleakley & Aimee Chin, 2009. "Age at Arrival, English Proficiency, and Social Assimilation Among U.S. Immigrants," CReAM Discussion Paper Series 0913, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Ingo E. Isphording & Sebastian Otten, 2012. "The Costs of Babylon – Linguistic Distance in Applied Economics," Ruhr Economic Papers 0337, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. Angrist, Joshua D & Lavy, Victor, 1997. "The Effect of a Change in Language of Instruction on the Returns to Schooling in Morocco," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages S48-76, January.
  4. Silvio Rendon, 2006. "The Catalan Premium: Language and Employment in Catalonia," Working Papers 0604, Centro de Investigacion Economica, ITAM.
  5. Chiswick, Barry R. & Miller, Paul W., 2013. "The impact of surplus skills on earnings: Extending the over-education model to language proficiency," Economics of Education Review, Elsevier, vol. 36(C), pages 263-275.
  6. Aldashev, Alisher & Gernandt, Johannes & Thomsen, Stephan L., 2009. "Language usage, participation, employment and earnings: Evidence for foreigners in West Germany with multiple sources of selection," Labour Economics, Elsevier, vol. 16(3), pages 330-341, June.
  7. Aysýt Tansel & Elif Öznur Kan, 2012. "The Formal/Informal Employment Earnings GAP: Evidence From Turkey," Working Papers 2012/23, Turkish Economic Association.
  8. Peter Howitt, 1999. "Steady Endogenous Growth with Population and R & D Inputs Growing," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 715-730, August.
  9. 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.
  10. William K. Hutchinson, 2005. "“Linguistic Distance” as a Determinant of Bilateral Trade," Southern Economic Journal, Southern Economic Association, vol. 72(1), pages 1–15, July.
  11. Mehtabul Azam & Aimee Chin & Nishith Prakash, 2013. "The Returns to English-Language Skills in India," Economic Development and Cultural Change, University of Chicago Press, vol. 61(2), pages 335 - 367.
  12. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 411-432, September.
  13. Eli Berman & Kevin Lang & Erez Siniver, 1999. "Language Skill Complementarity: Returns to Immigrant Language Acquisition," Boston University - Institute for Economic Development 96, Boston University, Institute for Economic Development.
  14. Tansel, Aysit & Yaşar, Pınar, 2010. "Macroeconomic Impact of Remittances on Output Growth: Evidence from Turkey," IZA Discussion Papers 5376, Institute for the Study of Labor (IZA).
  15. Dustmann, C. & Soest, A.H.O. van, 2004. "An analysis of speaking fluency of immigrants using ordered response models with classification errors," Open Access publications from Tilburg University urn:nbn:nl:ui:12-140721, Tilburg University.
  16. Arslanturk, Yalcin & Balcilar, Mehmet & Ozdemir, Zeynel Abidin, 2011. "Time-varying linkages between tourism receipts and economic growth in a small open economy," Economic Modelling, Elsevier, vol. 28(1-2), pages 664-671, January.
  17. Núria Quella & Silvio Rendon, 2012. "Occupational selection in multilingual labor markets: the case of Catalonia," International Journal of Manpower, Emerald Group Publishing, vol. 33(8), pages 918-937, July.
  18. Alicia Adsera & Mariola Pytlikova, 2012. "The role of language in shaping international migration," Norface Discussion Paper Series 2012014, Norface Research Programme on Migration, Department of Economics, University College London.
  19. 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.
  20. Alejandra Cattaneo & Rainer Winkelmann, 2003. "Earning Differentials between German and French Speakers in Switzerland," SOI - Working Papers 0309, Socioeconomic Institute - University of Zurich, revised Nov 2003.
  21. Williams, Donald R., 2006. "The Economic Returns to Multiple Language Usage in Western Europe," IRISS Working Paper Series 2006-07, IRISS at CEPS/INSTEAD.
  22. David Albouy, 2008. "The wage gap between Francophones and Anglophones: a Canadian perspective, 1970-2000," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1211-1238, November.
  23. Stewart, Mark B, 1983. "On Least Squares Estimation When the Dependent Variable Is Grouped," Review of Economic Studies, Wiley Blackwell, vol. 50(4), pages 737-53, October.
  24. Michael A. Shields & Stephen Wheatley Price, 2002. "The English language fluency and occupational success of ethnic minority immigrant men living in English metropolitan areas," Journal of Population Economics, Springer, vol. 15(1), pages 137-160.
  25. Segerstrom, Paul S, 2000. " The Long-Run Growth Effects of R&D Subsidies," Journal of Economic Growth, Springer, vol. 5(3), pages 277-305, September.
  26. Joshua Angrist & Aimee Chin & Ricardo Godoy, 2006. "Is Spanish-Only Schooling Responsible for the Puerto Rican Language Gap?," NBER Working Papers 12005, National Bureau of Economic Research, Inc.
  27. Ku, Hyejin & Zussman, Asaf, 2010. "Lingua franca: The role of English in international trade," Journal of Economic Behavior & Organization, Elsevier, vol. 75(2), pages 250-260, August.
  28. 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.
  29. Barry Chiswick & Paul Miller, 2010. "Occupational language requirements and the value of English in the US labor market," Journal of Population Economics, Springer, vol. 23(1), pages 353-372, January.
  30. James Levinsohn, 2004. "Globalization and the Returns to Speaking English in South Africa," Working Papers 523, Research Seminar in International Economics, University of Michigan.
  31. Aysit Tansel, 1998. "Self Employment Wage Employment Choice and Returns to Education for Urban Men and Women in Turkey," Working Papers 9804, Economic Research Forum, revised Apr 1998.
  32. Jacques Melitz, 2003. "Language and Foreign Trade," Working Papers 2003-26, Centre de Recherche en Economie et Statistique.
  33. 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.
  34. GABSZEWICZ, Jean J. & GINSBURG, Victor A. & LAUSSEL, Didier & WEBER, Shlomo, . "Foreign languages acquisition: self-learning and language schools," CORE Discussion Papers RP -2318, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  35. Victor Ginsburgh & Juan Prieto, 2007. "Returns to foreign languages of native workers in the EU," ULB Institutional Repository 2013/151573, ULB -- Universite Libre de Bruxelles.
  36. Ginsburgh, Victor & Ortuño-Ortín, Ignacio & Weber, Shlomo, 2005. "Learning Foreign Languages.Theoretical and Empirical Implications of the Selten and Pool Model," CEPR Discussion Papers 4942, C.E.P.R. Discussion Papers.
  37. 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.
  38. Oh, Chang Hoon & Travis Selmier, W. & Lien, Donald, 2011. "International trade, foreign direct investment, and transaction costs in languages," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 732-735.
  39. Tansel, Aysit, 1994. "Wage employment, earnings and returns to schooling for men and women in Turkey," Economics of Education Review, Elsevier, vol. 13(4), pages 305-320.
  40. Gabriel R G Benito & Geir Gripsrud, 1992. "The Expansion of Foreign Direct Investments: Discrete Rational Location Choices or a Cultural Learning Process?," Journal of International Business Studies, Palgrave Macmillan, vol. 23(3), pages 461-476, September.
  41. Giulia BETTIN & Riccardo LUCCHETTI, 2010. "Interval Regression Models with;Endogenous Explanatory Variables," Working Papers 339, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  42. Dustmann, Christian, 1994. "Speaking Fluency, Writing Fluency and Earnings of Migrants," Journal of Population Economics, Springer, vol. 7(2), pages 133-56.
  43. Antonio di Paolo, 2011. "Knowledge of catalan, public/prívate sector choice and earnings: Evidence from a double sample selection model," Hacienda Pública Española, IEF, vol. 197(2), pages 9-35, June.
  44. Jeffrey Church & Ian King, 1993. "Bilingualism and Network Externalities," Canadian Journal of Economics, Canadian Economics Association, vol. 26(2), pages 337-45, May.
  45. Ott Toomet, 2011. "Learn English, Not the Local Language! Ethnic Russians in the Baltic States," American Economic Review, American Economic Association, vol. 101(3), pages 526-31, May.
  46. David Roodman, 2011. "Fitting fully observed recursive mixed-process models with cmp," Stata Journal, StataCorp LP, vol. 11(2), pages 159-206, June.
  47. Casale, Daniela & Posel, Dorrit, 2011. "English language proficiency and earnings in a developing country: The case of South Africa," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(4), pages 385-393, August.
  48. Leslie, Derek & Lindley, Joanne, 2001. "The Impact of Language Ability on Employment and Earnings of Britain's Ethnic Communities," Economica, London School of Economics and Political Science, vol. 68(272), pages 587-606, November.
  49. Albert Saiz & Elena Zoido, 2005. "Listening to What the World Says: Bilingualism and Earnings in the United States," The Review of Economics and Statistics, MIT Press, vol. 87(3), pages 523-538, August.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Tansel, Aysit, 2013. "Supplementary Education in Turkey: Recent Developments and Future Prospects," MPRA Paper 50213, University Library of Munich, Germany.
  2. Anna Castañer & Mª Mercè Claramunt, 2014. "Optimal stop-loss reinsurance: a dependence analysis," Working Papers XREAP2014-04, Xarxa de Referència en Economia Aplicada (XREAP), revised Apr 2014.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:tek:wpaper:2013/14. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ercan Uygur).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.