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The Wage Penalty of Dialect-Speaking

Author

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  • Jan C. van Ours

    (Erasmus University Rotterdam, The Netherlands)

  • Yuxin Yao

    (Tilburg University, The Netherlands)

Abstract

Our paper studies the effects of dialect-speaking on job characteristics of Dutch workers, in particular on their hourly wages. The unconditional difference in median hourly wages between standard Dutch speakers and dialect speakers is about 10.6% for males and 6.7% for females. If we take into account differences in personal characteristics and province fixed effects male dialect speakers earn 4.1% less while for females this is 2.8%. Using the geographic distance to Amsterdam as an instrumental variable to dialect-speaking, we find that male workers who speak a dialect earn 11.6% less while for female workers this is 1.6%. Our main conclusion is that for male workers there is a significant wage penalty of dialect-speaking while for female workers there is no significant difference.

Suggested Citation

  • Jan C. van Ours & Yuxin Yao, 2016. "The Wage Penalty of Dialect-Speaking," Tinbergen Institute Discussion Papers 16-091/V, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20160091
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    References listed on IDEAS

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    1. Antonio Di Paolo & Josep Lluís Raymond, 2012. "Language Knowledge and Earnings in Catalonia," Journal of Applied Economics, Taylor & Francis Journals, vol. 15(1), pages 89-118, May.
    2. Yao, Yuxin & Ohinata, Asako & van Ours, Jan C., 2016. "The Educational Consequences of Language Proficiency for Young Children," IZA Discussion Papers 9800, Institute of Labor Economics (IZA).
    3. Kevin Lang, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 363-382.
    4. Yao, Yuxin & van Ours, Jan C., 2015. "Language skills and labor market performance of immigrants in the Netherlands," Labour Economics, Elsevier, vol. 34(C), pages 76-85.
    5. Yao, Y. & van Ours, J.C., 2015. "Language Skills and Labor Market Performance of Immigrants in the Netherlands," Other publications TiSEM 8df5e344-eb4e-4c90-9429-8, Tilburg University, School of Economics and Management.
    6. Yao, Yuxin & Ohinata, Asako & van Ours, Jan C., 2016. "The educational consequences of language proficiency for young children," Economics of Education Review, Elsevier, vol. 54(C), pages 1-15.
    7. Jeffrey Grogger, 2011. "Speech Patterns and Racial Wage Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 1-25.
    8. Budría, Santiago & Swedberg, Pablo, 2012. "The Impact of Language Proficiency on Immigrants' Earnings in Spain," IZA Discussion Papers 6957, Institute of Labor Economics (IZA).
    9. Gao, Wenshu & Smyth, Russell, 2011. "Economic returns to speaking 'standard Mandarin' among migrants in China's urban labour market," Economics of Education Review, Elsevier, vol. 30(2), pages 342-352, April.
    10. van Ours, Jan C. & Yao, Yuxin & Ohinata, Asako, 2016. "The Educational Consequences of Language Proficiency for Young Children," CEPR Discussion Papers 11183, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Grogger, Jeffrey & Steinmayr, Andreas & Winter, Joachim, 2019. "The Wage Penalty of Regional Accents," Rationality and Competition Discussion Paper Series 184, CRC TRR 190 Rationality and Competition.
    2. Yuxin Yao & Jan C. Ours, 2019. "Daily dialect-speaking and wages among native Dutch speakers," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(4), pages 653-668, November.
    3. 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.

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    More about this item

    Keywords

    Dialect-speaking; wage penalty; job characteristics;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I2 - Health, Education, and Welfare - - Education

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