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Nonparametric bounds on the returns to language skills

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  • Libertad González

    (Department of Economics and Business, Universitat Pompeu Fabra and CREA, Barcelona, Spain)

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 analyse 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. Copyright © 2005 John Wiley & Sons, Ltd.

Suggested Citation

  • Libertad González, 2005. "Nonparametric bounds on the returns to language skills," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(6), pages 771-795.
    • Handle: RePEc:jae:japmet:v:20:y:2005:i:6:p:771-795
    DOI: 10.1002/jae.795
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    6. Germinario, Giuseppe & Amin, Vikesh & Flores, Carlos A. & Flores-Lagunes, Alfonso, 2022. "What can we learn about the effect of mental health on labor market outcomes under weak assumptions? Evidence from the NLSY79," Labour Economics, Elsevier, vol. 79(C).
    7. Ity Shurtz & Alon Eizenberg & Adi Alkalay & Amnon Lahad, 2022. "Physician workload and treatment choice: the case of primary care," RAND Journal of Economics, RAND Corporation, vol. 53(4), pages 763-791, December.
    8. Lafférs, Lukáš, 2013. "A note on bounding average treatment effects," Economics Letters, Elsevier, vol. 120(3), pages 424-428.
    9. 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.
    10. Yu Aoki & Lualhati Santiago, 2024. "Where to live? English proficiency and residential location of UK migrants," French Stata Users' Group Meetings 2024 27, Stata Users Group.
    11. Sajons, Christoph, 2019. "Birthright citizenship and parental labor market integration," Labour Economics, Elsevier, vol. 57(C), pages 1-22.
    12. Jeremiah Richey, 2016. "An Odd Couple: Monotone Instrumental Variables and Binary Treatments," Econometric Reviews, Taylor & Francis Journals, vol. 35(6), pages 1099-1110, June.
    13. Nicole Black & Johannes S. Kunz, 2024. "The Intergenerational Effects of Language Proficiency on Child Health Outcomes: Evidence from Survey- and Census-matched Health Care Records," Papers 2024-11, Centre for Health Economics, Monash University.
    14. 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.
    15. Stefan Boes, 2009. "Bounds on Counterfactual Distributions Under Semi-Monotonicity Constraints," SOI - Working Papers 0920, Socioeconomic Institute - University of Zurich.
    16. 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.
    17. 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.
    18. Bando, Rosangela & Li, Xia, 2014. "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.
    19. 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.
    20. 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.
    21. Aoki, Yu & Santiago, Lualhati, 2024. "Where to live? English proficiency and residential location of UK migrants," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 73-93.
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    23. 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).
    24. 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.
    25. 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

    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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