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Nonparametric bounds on the returns to language skills

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Abstract

This paper applies the theoretical literature on nonparametric bounds on treatment effects to the estimation of how limited English proficiency (LEP) affects wages and employment opportunities for Hispanic workers in the United States. I analyze the identifying power of several weak assumptions on treatment response and selection, and stress the interactions between LEP and education, occupation and immigration status. I show that the combination of two weak but credible assumptions provides informative upper bounds on the returns to language skills for certain subgroups of the population. Adding age at arrival as a monotone instrumental variable also provides informative lower bounds.

Suggested Citation

  • Libertad González, 2003. "Nonparametric bounds on the returns to language skills," Economics Working Papers 714, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfgen:714
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    1. Fenoll, Ainoa Aparicio & Kuehn, Zoë, 2019. "Immigrants move where their skills are scarce: Evidence from English proficiency," Labour Economics, Elsevier, vol. 61(C).
    2. Victor Chernozhukov & Sokbae Lee & Adam M. Rosen, 2013. "Intersection Bounds: Estimation and Inference," Econometrica, Econometric Society, vol. 81(2), pages 667-737, March.
    3. Antonio Di Paolo & Josep Lluís Raymond, 2012. "Language Knowledge and Earnings in Catalonia," Journal of Applied Economics, Taylor & Francis Journals, vol. 15(1), pages 89-118, May.
    4. Lafférs, Lukáš, 2013. "A note on bounding average treatment effects," Economics Letters, Elsevier, vol. 120(3), pages 424-428.
    5. Tsunao Okumura & Emiko Usui, 2014. "Concave‐monotone treatment response and monotone treatment selection: With an application to the returns to schooling," Quantitative Economics, Econometric Society, vol. 5, pages 175-194, March.
    6. Sajons, Christoph, 2019. "Birthright citizenship and parental labor market integration," Labour Economics, Elsevier, vol. 57(C), pages 1-22.
    7. Jeremiah Richey, 2016. "An Odd Couple: Monotone Instrumental Variables and Binary Treatments," Econometric Reviews, Taylor & Francis Journals, vol. 35(6), pages 1099-1110, June.
    8. Michael Gerfin & Martin Schellhorn, 2006. "Nonparametric bounds on the effect of deductibles in health care insurance on doctor visits – Swiss evidence," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 1011-1020, September.
    9. Stefan Boes, 2009. "Bounds on Counterfactual Distributions Under Semi-Monotonicity Constraints," SOI - Working Papers 0920, Socioeconomic Institute - University of Zurich.
    10. Rhoads Christopher H., 2012. "Problems with Tests of the Missingness Mechanism in Quantitative Policy Studies," Statistics, Politics and Policy, De Gruyter, vol. 3(1), pages 1-25, March.
    11. Bando, Rosangela & Li, Xia, 2018. "The Effect of In-Service Teacher Training on Student Learning of English as a Second Language," IDB Publications (Working Papers) 6596, Inter-American Development Bank.
    12. Rosangela Bando & Xia Li, 2014. "The Effect of In-Service Teacher Training on Student Learning of English as a Second Language," IDB Publications (Working Papers) 86173, Inter-American Development Bank.
    13. Victor Ginsburgh & Juan Prieto-Rodriguez, 2013. "Is there a Gender Bias in the Use of Foreign Languages in Europe?," Kyklos, Wiley Blackwell, vol. 66(4), pages 552-566, November.
    14. Siwach, Garima, 2017. "Criminal background checks and recidivism: Bounding the causal impact," International Review of Law and Economics, Elsevier, vol. 52(C), pages 74-85.
    15. Alkalay, Adi & Eizenberg, Alon & Lahad, Amnon & Shurtz, Ity, 2018. "Physician workload and treatment choice: the case of primary care," CEPR Discussion Papers 13157, C.E.P.R. Discussion Papers.
    16. Aoki, Yu & Santiago, Lualhati, 2018. "Deprivation, Segregation, and Socioeconomic Class of UK Immigrants: Does English Proficiency Matter?," IZA Discussion Papers 11368, Institute of Labor Economics (IZA).
    17. Deockhyun Ryu & Changhui Kang, 2013. "Do Private Tutoring Expenditures Raise Academic Performance? Evidence from Middle School Students in South Korea," Asian Economic Journal, East Asian Economic Association, vol. 27(1), pages 59-83, March.
    18. Aizawa, T.;, 2019. "Reviewing the Existing Evidence of the Conditional Cash Transfer in India through the Partial Identification Approach," Health, Econometrics and Data Group (HEDG) Working Papers 19/24, HEDG, c/o Department of Economics, University of York.

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    More about this item

    Keywords

    Nonparametric bounds; language skills; Hispanic workers; labor market outcomes;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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