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Language knowledge and earnings in Catalonia

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  • Antonio Di Paolo

    ()
    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

  • Josep Lluís Raymond

    ()
    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

Abstract

In this paper we are aimed to investigate the relationship between Catalan knowledge and individual earnings in Catalonia. Using data from 2006, we find a positive earning return to Catalan proficiency; however, when accounting for self-selection into Catalan knowledge, we find a higher language return (20% of extra earnings), suggesting that individuals who are more prone to know Catalan are also less remunerated than others (negative selection effect). Moreover, we also find important complementarities between language knowledge and completed education, which means that only more educated individuals benefit from Catalan knowledge.

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Bibliographic Info

Paper provided by Department of Applied Economics at Universitat Autonoma of Barcelona in its series Working Papers with number wpdea1001.

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Length: 32 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:uab:wprdea:wpdea1001

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Keywords: Language; Earnings; Self-Selection; Skill-Complementarity; Catalonia;

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References

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  1. Thomsen, Stephan L. & Gernandt, Johannes & Aldashev, Alisher, 2008. "Language Usage, Participation, Employment and Earnings: Evidence for Foreigners in West Germany with Multiple Sources of Selection," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 08-090, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Mario Izquierdo & Aitor Lacuesta & Raquel Vegas, 2009. "Assimilation of immigrants in Spain: A longitudinal analysis," Banco de Espa�a Working Papers, Banco de Espa�a 0904, Banco de Espa�a.
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  4. Sílvio Rendon, 2007. "The Catalan premium: language and employment in Catalonia," Journal of Population Economics, Springer, Springer, vol. 20(3), pages 669-686, July.
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  7. Dustmann, Christian & Fabbri, Francesca, 2000. "Language Proficiency and Labour Market Performance of Immigrants in the UK," IZA Discussion Papers 156, Institute for the Study of Labor (IZA).
  8. Kevin Lang & Erez Siniver, 2006. "The Return to English in a Non-English Speaking Country: Russian Immigrants and Native Israelis in Israel," NBER Working Papers 12464, National Bureau of Economic Research, Inc.
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  14. Barry Chiswick & Paul Miller, 2001. "A model of destination-language acquisition: Application to male immigrants in Canada," Demography, Springer, Springer, vol. 38(3), pages 391-409, August.
  15. Núria Quella & Silvio Rendon, 2012. "Occupational selection in multilingual labor markets: the case of Catalonia," International Journal of Manpower, Emerald Group Publishing, Emerald Group Publishing, vol. 33(8), pages 918-937, July.
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Citations

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Cited by:
  1. Antonio Di Paolo & Aysit Tansel, 2013. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Working Papers, Xarxa de Referència en Economia Aplicada (XREAP) XREAP2013-07, Xarxa de Referència en Economia Aplicada (XREAP), revised Oct 2013.
  2. Antonio Di Paolo, 2010. "Knowledge of Catalan, public/private sector choice and earnings: Evidence from a double sample selection model," Working Papers, Xarxa de Referència en Economia Aplicada (XREAP) XREAP2010-09, Xarxa de Referència en Economia Aplicada (XREAP), revised Sep 2010.
  3. Ramon Caminal, 2013. "The Economic Value of Reciprocal Bilingualism," Working Papers 713, Barcelona Graduate School of Economics.
  4. Budría, Santiago & Swedberg, Pablo, 2012. "The Impact of Language Proficiency on Immigrants' Earnings in Spain," IZA Discussion Papers 6957, Institute for the Study of Labor (IZA).
  5. Antonio Manresa & Ferran Sancho, 2012. "Leontief versus Ghosh: two faces of the same coin," Working Papers, Xarxa de Referència en Economia Aplicada (XREAP) XREAP2012-18, Xarxa de Referència en Economia Aplicada (XREAP), revised Oct 2012.
  6. Anna Castañer & Mª Mercè Claramunt, 2014. "Optimal stop-loss reinsurance: a dependence analysis," Working Papers, Xarxa de Referència en Economia Aplicada (XREAP) XREAP2014-04, Xarxa de Referència en Economia Aplicada (XREAP), revised Apr 2014.
  7. Ramon Caminal, 2013. "The economic value of reciprocal bilingualism," UFAE and IAE Working Papers, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) 933.13, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).

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