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Knowledge of Catalan, public/private sector choice and earnings: Evidence from a double sample selection model

  • Antonio Di Paolo

    ()

    (Departament d'Economia Aplicada, Universitat Autònoma de Barcelona (UAB); Campus de Bellaterra, Edifici B 08193 Bellaterra (Cerdanyola), Spain. Institut d’Economia de Barcelona, Universitat de Barcelona.)

This paper explores the earnings return to Catalan knowledge for public and private workers in Catalonia. In doing so, we allow for a double simultaneous selection process. We consider, on the one hand, the non-random allocation of workers into one sector or another, and on the other, the potential self-selection into Catalan proficiency. In addition, when correcting the earnings equations, we take into account the correlation between the two selectivity rules. Our findings suggest that the apparent higher language return for public sector workers is entirely accounted for by selection effects, whereas knowledge of Catalan has a significant positive return in the private sector, which is somewhat higher when the selection processes are taken into account.

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File URL: http://www.pcb.ub.es/xreap/aplicacio/fitxers/XREAP2010-9.pdf
File Function: First version, 2010
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File URL: http://www.pcb.ub.es/xreap/aplicacio/fitxers/XREAP2010-9.pdf
File Function: Revised version, 2010
Download Restriction: no

Paper provided by Xarxa de Referència en Economia Aplicada (XREAP) in its series Working Papers with number XREAP2010-09.

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Length: 36 pages
Date of creation: Sep 2010
Date of revision: Sep 2010
Handle: RePEc:xrp:wpaper:xreap2010-09
Contact details of provider: Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques i Empresarials, Universitat de Barcelona, c/ Tinent Coronel Valenzuela, 1-11, 08034 Barcelona
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Web page: http://www.pcb.ub.edu/xreapEmail:


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  1. van der Gaag, Jacques & Vijverberg, Wim, 1988. "A Switching Regression Model for Wage Determinants in the Public and Private Sectors of a Developing Country," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 244-52, May.
  2. Sílvio Rendon, 2003. "The Catalan Premium: Language And Employment In Catalonia," Economics Working Papers we033410, Universidad Carlos III, Departamento de Economía.
  3. Keith A. Bender, 2003. "Examining Equality between Public- and Private-Sector Wage Distributions," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 62-79, January.
  4. Christofides, Louis N. & Pashardes, Panos, 2002. "Self/paid-employment, public/private sector selection, and wage differentials," Labour Economics, Elsevier, vol. 9(6), pages 737-762, December.
  5. Victor A. Ginsburgh & Juan Prieto-Rodriguez, 2011. "Returns to Foreign Languages of Native Workers in the EU," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 64(3), pages 599-618, April.
  6. Thomsen, Stephan L. & Gernandt, Johannes & Aldashev, Alisher, 2008. "Language Usage, Participation, Employment and Earnings: Evidence for Foreigners in West Germany with Multiple Sources of Selection," ZEW Discussion Papers 08-090, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Lang Kevin & Siniver Erez, 2009. "The Return to English in a Non-English Speaking Country: Russian Immigrants and Native Israelis in Israel," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-30, November.
  8. Victor Ginsburgh & Juan Prieto-Rodríguez, 2007. "La prima salarial de las lenguas extranjeras en el mercado de trabajo español," ULB Institutional Repository 2013/7282, ULB -- Universite Libre de Bruxelles.
  9. Antonio Di Paolo & Josep Lluís Raymond, 2010. "Language knowledge and earnings in Catalonia," Working Papers XREAP2010-07, Xarxa de Referència en Economia Aplicada (XREAP), revised Jul 2010.
  10. Chiswick, Barry R. & Miller, Paul W., 2007. "Occupational Language Requirements and the Value of English in the U.S. Labor Market," IZA Discussion Papers 2664, Institute for the Study of Labor (IZA).
  11. Axel Heitmueller, 2006. "Public-private sector pay differentials in a devolved Scotland," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 295-323, November.
  12. Quella, Núria & Rendon, Silvio, 2008. "Occupational Selection in Multilingual Labor Markets," IZA Discussion Papers 3446, Institute for the Study of Labor (IZA).
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