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Occupational selection in multilingual labor markets: the case of Catalonia

Author

Listed:
  • Núria Quella
  • Silvio Rendon

Abstract

Purpose - The purpose of this paper is to measure the effect that knowing the Catalan language has on individuals’ comparative advantage to perform certain jobs in Catalonia (Spain), where Catalan and Spanish coexist. Design/methodology/approach - Using census data for 1991 and 1996, and for individuals born in Spain, the paper first estimates a Probit model for individuals’ level of Catalan proficiency in order to correct for the possible endogeneity of Catalan knowledge, as it may be jointly determined with occupational selection or be a reflection of unobserved human capital or innate ability. Then, it estimates a bivariate Probit model for the probability of choosing a given occupation conditional on a given Catalan proficiency level. Findings - The paper finds that advanced proficiency in Catalan reinforces selection into being employed, being an entrepreneur, and into white‐collar occupations and communication‐intensive jobs. Being able to read and speak Catalan increases selection into white collar occupations by between 11 and 16 percentage points, while writing Catalan increases by 4 to 7 percentage points the probability of engaging in services, and government and educational activities. Practical implications - Because census data are cross‐sectional panel effects on language selection cannot be analyzed. Nevertheless, the paper's results suggest that investing in learning the local language, at the firm and the government level, improves job matching and assimilation of workers to multilingual economies. The authors suggest a cost‐benefit analysis to assess the effectiveness of language policies for further research. Originality/value - The results contribute to the scarce literature on the economic value of a language, i.e. on how much language knowledge as a form of human capital reinforces individuals’ comparative advantage to perform certain tasks.

Suggested Citation

  • Núria Quella & Silvio Rendon, 2012. "Occupational selection in multilingual labor markets: the case of Catalonia," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(8), pages 918-937, November.
    • Handle: RePEc:eme:ijmpps:v:33:y:2012:i:8:p:918-937
    DOI: 10.1108/01437721211280380
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    Cited by:

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    2. Jacek Liwiński, 2019. "The wage premium from foreign language skills," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(4), pages 691-711, November.
    3. Antonio Di Paolo & Josep Lluís Raymond, 2012. "Language knowledge and earnings in Catalonia," Journal of Applied Economics, Universidad del CEMA, vol. 15, pages 89-118, May.
    4. Markowsky, Eva & Wolf, Fridolin & Schäfer, Marie, 2022. "Immigrant bilingualism in the German labour market: Between human capital, social networks, and ethnic marginalisation," WiSo-HH Working Paper Series 68, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.
    5. Antonio Di Paolo & Aysit Tansel, 2015. "Returns to Foreign Language Skills in a Developing Country: The Case of Turkey," Journal of Development Studies, Taylor & Francis Journals, vol. 51(4), pages 407-421, April.
    6. Bengt-Arne Wickström, 2014. "Indigenes, immigration, and integration: a welfare-economics approach to minority rights," Chapters, in: Francesco Forte & Ram Mudambi & Pietro Maria Navarra (ed.), A Handbook of Alternative Theories of Public Economics, chapter 10, pages 227-242, Edward Elgar Publishing.

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    More about this item

    Keywords

    Occupational selection; Industry; Immigration; Skill premium; Spain; Skills; Languages; Competitive advantage; Labour market;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I20 - Health, Education, and Welfare - - Education - - - General

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