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Language knowledge and earnings in Catalonia

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Author Info

  • 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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File URL: http://www.ecap.uab.es/RePEc/doc/wpdea1001.pdf
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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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Web page: http://www.uab.cat/departament/economia-aplicada/
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Keywords: Language; Earnings; Self-Selection; Skill-Complementarity; Catalonia;

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References

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  1. Dustmann, C. & Soest, A.H.O. van, 1998. "Language Fluency and Earnings: Estimation with Misclassified Language Indicators," Discussion Paper 1998-120, Tilburg University, Center for Economic Research.
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  8. Amuedo Dorantes, Catalina & De la Rica Goiricelaya, Sara, 2006. "Labor Market Assimilation of Recent Immigrants in Spain," DFAEII Working Papers 2006-01, University of the Basque Country - Department of Foundations of Economic Analysis II.
  9. Dustmann, Christian & van Soest, Arthur, 1998. "Language and the Earnings of Immigrants," CEPR Discussion Papers 2012, C.E.P.R. Discussion Papers.
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  12. 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.
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  15. Geoffrey Carliner, 1996. "The Wages and Language Skills of U.S. Immigrants," NBER Working Papers 5763, National Bureau of Economic Research, Inc.
  16. Quella, Núria & Rendon, Silvio, 2008. "Occupational Selection in Multilingual Labor Markets," IZA Discussion Papers 3446, Institute for the Study of Labor (IZA).
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  19. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
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Citations

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Cited by:
  1. Antonio Manresa & Ferran Sancho, 2012. "Leontief versus Ghosh: two faces of the same coin," Working Papers XREAP2012-18, Xarxa de Referència en Economia Aplicada (XREAP), revised Oct 2012.
  2. 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).
  3. 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.
  4. Antonio Di Paolo & Aysit Tansel, 2013. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Working Papers XREAP2013-07, Xarxa de Referència en Economia Aplicada (XREAP), revised Oct 2013.
  5. Antonio Di Paolo, 2010. "Knowledge of Catalan, public/private sector choice and earnings: Evidence from a double sample selection model," Working Papers XREAP2010-09, Xarxa de Referència en Economia Aplicada (XREAP), revised Sep 2010.
  6. Ramon Caminal, 2013. "The economic value of reciprocal bilingualism," UFAE and IAE Working Papers 933.13, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  7. Ramon Caminal, 2013. "The Economic Value of Reciprocal Bilingualism," Working Papers 713, Barcelona Graduate School of Economics.

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