Returns to foreign languages of native workers in the EU
Most of the literature on returns to languages is concerned with immigrants. The authors' study, which uses the European Community Household Panel Survey for the period 1994-2001, infers returns to non-native languages by native workers in nine countries of the European Union. The study differs from other studies that deal with the same issue in three respects. First, instead of using a dummy for each language, they use the ratio of the population not proficient in a given country's national language and compare the results with the more traditional approach using dummies. Second, they correct for time-independent measurement errors in self-reporting and find that the resulting IV estimates are much larger than those obtained by OLS. They also suggest that there is little room for time-persistent errors and heterogeneity and that therefore their estimates should suffer ostensibly little from unobserved ability biases. Finally, they estimate IV quantile regressions to illustrate how returns to languages vary at different points of the distribution of earnings.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2007|
|Date of revision:|
|Publication status:||Published in: Industrial & labor relations review (2007) n° 64,p.599-618|
|Contact details of provider:|| Postal: CP135, 50, avenue F.D. Roosevelt, 1050 Bruxelles|
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- John E. DiNardo & Jörn-Steffen Pischke, 1997. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," The Quarterly Journal of Economics, Oxford University Press, vol. 112(1), pages 291-303.
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- Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 246-88, April.
- Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
- Williams, Donald R., 2006. "The Economic Returns to Multiple Language Usage in Western Europe," IRISS Working Paper Series 2006-07, IRISS at CEPS/INSTEAD.
- Abbott, Michael G & Beach, Charles M, 1992. "Immigrant Earnings Differentials in Canada: A More General Specification of Age and Experience Effects," Empirical Economics, Springer, vol. 17(2), pages 221-38.
- Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, vol. 11(3), pages 355-371, June.
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