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Language knowledge and earnings in Catalonia

Author

Listed:
  • 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.

Suggested Citation

  • Antonio Di Paolo & Josep Lluís Raymond, 2010. "Language knowledge and earnings in Catalonia," Working Papers wpdea1001, Department of Applied Economics at Universitat Autonoma of Barcelona.
  • Handle: RePEc:uab:wprdea:wpdea1001
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    References listed on IDEAS

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    More about this item

    Keywords

    Language; Earnings; Self-Selection; Skill-Complementarity; Catalonia;
    All these keywords.

    JEL classification:

    • J79 - Labor and Demographic Economics - - Labor Discrimination - - - Other
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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