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Knowledge of catalan, public/prívate sector choice and earnings: Evidence from a double sample selection model

  • Antonio di Paolo

    ()

    (Universidad Autónoma de Barcelona)

This paper explores the earnings return to Catalan knowledge for public and private workers in Catalonia. In doing so, we allow for a double simultaneous selection process. We consider, on the one hand, the non-random allocation of workers into one sector or another, and on the other, the potential self-selection into Catalan proficiency. In addition, when correcting the earnings equations, we control for the correlation between the two selectivity rules. Our findings suggest that the apparent higher language return for public sector workers is entirely accounted for by selection effects, whereas knowledge of Catalan has a significant positive return in the private sector, which is somewhat higher when the selection processes are taken into account.

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Article provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.

Volume (Year): 197 (2011)
Issue (Month): 2 (June)
Pages: 9-35

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Handle: RePEc:hpe:journl:y:2011:v:197:i:2:p:9-35
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  1. Christofides, Louis N. & Pashardes, Panos, 2002. "Self/paid-employment, public/private sector selection, and wage differentials," Labour Economics, Elsevier, vol. 9(6), pages 737-762, December.
  2. Kevin Lang & Erez Siniver, 2006. "The Return To English In A Non-English Speaking Country: Russian Immigrants And Native Israelis In Israel," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-159, Boston University - Department of Economics.
  3. Antonio Di Paolo & Josep Lluís Raymond, 2010. "Language knowledge and earnings in Catalonia," Working Papers XREAP2010-07, Xarxa de Referència en Economia Aplicada (XREAP), revised Jul 2010.
  4. Quella, Núria & Rendon, Silvio, 2008. "Occupational Selection in Multilingual Labor Markets," IZA Discussion Papers 3446, Institute for the Study of Labor (IZA).
  5. van der Gaag, Jacques & Vijverberg, Wim, 1988. "A Switching Regression Model for Wage Determinants in the Public and Private Sectors of a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 244-52, May.
  6. Sílvio Rendon, 2003. "The Catalan Premium: Language And Employment In Catalonia," Economics Working Papers we033410, Universidad Carlos III, Departamento de Economía.
  7. 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 08-090, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Axel Heitmueller, 2006. "Public-private sector pay differentials in a devolved Scotland," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 295-323, November.
  9. 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.
  10. Barry R Chiswick & Paul W Miller, 2007. "Occupational Language Requirements and the Value of English in the US Labor Market," Economics Discussion / Working Papers 07-06, The University of Western Australia, Department of Economics.
  11. Victor Ginsburgh & Juan Prieto-Rodríguez, 2007. "La prima salarial de las lenguas extranjeras en el mercado de trabajo español," ULB Institutional Repository 2013/7282, ULB -- Universite Libre de Bruxelles.
  12. Keith A. Bender, 2003. "Examining Equality between Public- and Private-Sector Wage Distributions," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 62-79, January.
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