Language knowledge and earnings in Catalonia

Antonio Di Paolo, Josep Lluís Raymond

Research output: Contribution to journalArticleResearchpeer-review

25 Citations (Scopus)

Abstract

This paper represents the first contribution that investigates the economic value of Catalan knowledge in terms of earnings, focusing on national and foreign first- and second-generation immigrants in Catalonia. Specifically, drawing on data from the Survey on Living Conditions and Habits of the Catalan Population (2006), we quantify the expected earnings differential between individuals who are proficient in Catalan and those who are not, taking into account the potential endogeneity between knowledge of Catalan and earnings. The results indicate the existence of a positive return to knowledge of Catalan, with a 7.5% increase in earnings estimated by OLS. When we account for the presence of endogeneity, monthly earnings are around 18% higher for individuals who are able to speak and write Catalan. We also find that language and education are complementary inputs for generating earnings in Catalonia, given that knowledge of Catalan increases monthly earnings only for more educated individuals. © 2012 Universidad del CEMA.
Original languageEnglish
Pages (from-to)89-118
JournalJournal of Applied Economics
Volume15
Issue number1
DOIs
Publication statusPublished - 1 Jan 2012

Keywords

  • Complementarity
  • Earnings
  • Endogeneity
  • Immigrants
  • Language

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