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The Endogeneity Between Language and Earnings: An international analysis

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  • B.R. Chiswick
  • P.W. Miller

Abstract

This study is concerned with the determinants of dominant language fluency, its effects on earnings, and its endogeneity with earnings among immigrants. Dominant language fluency is hypothesized to be a function of three fundamental variables: exposure to the language, efficiency in second language acquisition, and economic benefits from language fluency. Conceptual variables with empirical counterparts are developed. Earnings are hypothesized to be a function of language skills, among other variables. Ordinary least squares, instrumental variables, and sample selection bias techniques are used to estimate the equations for Australia. Comparisons are made with analyses for the United States, Canada, and Israel. Copyright 1995 by University of Chicago Press.
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Suggested Citation

  • B.R. Chiswick & P.W. Miller, 1993. "The Endogeneity Between Language and Earnings: An international analysis," Economics Discussion / Working Papers 93-03, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:93-03
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    References listed on IDEAS

    as
    1. Mark B. Stewart, 1983. "On Least Squares Estimation when the Dependent Variable is Grouped," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 737-753.
    2. Manski, Charles F., 1992. "Identification Problems In The Social Sciences," SSRI Workshop Series 292716, University of Wisconsin-Madison, Social Systems Research Institute.
    3. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
    4. Chiswick, Barry R, 1991. "Speaking, Reading, and Earnings among Low-Skilled Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 149-170, April.
    5. Dustmann, Christian, 1994. "Speaking Fluency, Writing Fluency and Earnings of Migrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(2), pages 133-156.
    6. McManus, Walter & Gould, William & Welch, Finis, 1983. "Earnings of Hispanic Men: The Role of English Language Proficiency," Journal of Labor Economics, University of Chicago Press, vol. 1(2), pages 101-130, April.
    7. repec:bla:ecorec:v:61:y:1985:i:173:p:540-53 is not listed on IDEAS
    8. Paul W. Miller & Barry R. Chiswick, 1985. "Immigrant Generation and Income in Australia," The Economic Record, The Economic Society of Australia, vol. 61(2), pages 540-553, June.
    9. Evelina Tainer, 1988. "English Language Proficiency and the Determination of Earnings among Foreign-Born Men," Journal of Human Resources, University of Wisconsin Press, vol. 23(1), pages 108-122.
    10. Robinson, Chris, 1989. "The Joint Determination of Union Status and Union Wage Effects: Some Tests of Alternative Models," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 639-667, June.
    11. repec:bla:econom:v:47:y:1980:i:185:p:81-87 is not listed on IDEAS
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