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Earnings Differentials between German and French speakers in Switzerland

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  • Alejandra Cattaneo
  • Rainer Winkelmann

Abstract

The paper analyzes the effect of mother tongue on labor market outcomes of Swiss residents. This type of analysis can shed light on an important policy question. Is the Swiss labor market well integrated, or can one find instead segmentation along language borders? Improving on previous research in this area, we use a nationally representative household survey, the Swiss Household Panel 1999 and 2000, and we explicitly account for self-selection of workers into language areas. Overall, we find no evidence to suggest that the Swiss labor market is not perfectly integrated or that internal migrants are positively selected.

Suggested Citation

  • Alejandra Cattaneo & Rainer Winkelmann, 2005. "Earnings Differentials between German and French speakers in Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(II), pages 191-212, June.
    • Handle: RePEc:ses:arsjes:2005-ii-2
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    References listed on IDEAS

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    Cited by:

    1. Andreas Steinhauer, 2018. "Working Moms, Childlessness, and Female Identity," Working Papers hal-03475468, HAL.
    2. Jacek Liwiński, 2019. "The wage premium from foreign language skills," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(4), pages 691-711, November.
    3. Antonio Di Paolo & Aysit Tansel, 2015. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 407-421, April.
    4. Steinhauer, Andreas, 2018. "Working Moms, Childlessness, and Female Identity," CEPR Discussion Papers 12929, C.E.P.R. Discussion Papers.
    5. Andreas Steinhauer, 2018. "Working Moms, Childlessness, and Female Identity," Sciences Po publications 79, Sciences Po.
    6. Victor Ginsburgh & Shlomo Weber, 2020. "The Economics of Language," Journal of Economic Literature, American Economic Association, vol. 58(2), pages 348-404, June.
    7. Javier Ortega & Gregory Verdugo, 2015. "Assimilation in multilingual cities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(3), pages 785-815, July.
    8. Antonio Di Paolo & Aysit Tansel, 2015. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 407-421, April.
    9. repec:hal:spmain:info:hdl:2441/1a68qg411o9bg9jp7fhgh60n5p is not listed on IDEAS
    10. Cottier, Lionel, 2018. "Culture, financial constraints, and retirement decision," Labour Economics, Elsevier, vol. 53(C), pages 128-145.
    11. Sílvio Rendon, 2007. "The Catalan premium: language and employment in Catalonia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(3), pages 669-686, July.
    12. Pierre Kohler, 2012. "The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben," IHEID Working Papers 08-2012, Economics Section, The Graduate Institute of International Studies.
    13. Simon Loertscher & Yves Schneider, 2005. "Switching Costs, Firm Size, and Market Structure," SOI - Working Papers 0508, Socioeconomic Institute - University of Zurich.
    14. Florian Zainhofer, 2007. "Life Cycle Portfolio Choice: A Swiss Perspective," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(II), pages 187-238, June.
    15. Hahm, Sabrina & Gazzola, Michele, 2022. "The Value of Foreign Language Skills in the German Labor Market," Labour Economics, Elsevier, vol. 76(C).
    16. Kohler, Pierre, 2012. "Three essays on the economic and cultural integration of migrants in Switzerland: putting into perspective the influence of economic discrimination and of host society culture," MPRA Paper 38129, University Library of Munich, Germany.
    17. Jason Dean & Vincent Geloso, 2022. "The linguistic wage gap in Quebec, 1901 to 1951," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 16(3), pages 615-637, September.
    18. Javier Ortega & Gregory Verdugo, 2015. "Assimilation in multilingual cities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(3), pages 785-815, July.
    19. WILLIAMS Donald R., 2006. "The Economic Returns to Multiple Language Usage in Western Europe," IRISS Working Paper Series 2006-07, IRISS at CEPS/INSTEAD.
    20. Pierre Kohler, 2012. "The Effect of Host Society Culture on Migrant Wage Discrimination: Approaching the Roestigraben," IHEID Working Papers 08-2012, Economics Section, The Graduate Institute of International Studies.

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    More about this item

    Keywords

    language; labor market segmentation; Swiss household panel;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J4 - Labor and Demographic Economics - - Particular Labor Markets
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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