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The Wage Penalty of Dialect-Speaking

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  • van Ours, Jan C.
  • Yao, Yuxin

Abstract

Our paper studies the effects of dialect-speaking on job characteristics of Dutch workers, in particular on their hourly wages. The unconditional difference in median hourly wages between standard Dutch speakers and dialect speakers is about 10.6% for males and 6.7% for females. If we take into account differences in personal characteristics and province fixed effects male dialect speakers earn 4.1% less while for females this is 2.8%. Using the geographic distance to Amsterdam as an instrumental variable to dialect-speaking, we find that male workers who speak a dialect earn 11.6% less while for female workers this is 1.6%. Our main conclusion is that for male workers there is a significant wage penalty of dialect-speaking while for female workers there is no significant difference.

Suggested Citation

  • van Ours, Jan C. & Yao, Yuxin, 2016. "The Wage Penalty of Dialect-Speaking," CEPR Discussion Papers 11610, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:11610
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    References listed on IDEAS

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    1. Antonio Di Paolo & Josep Lluís Raymond, 2012. "Language Knowledge and Earnings in Catalonia," Journal of Applied Economics, Taylor & Francis Journals, vol. 15(1), pages 89-118, May.
    2. Yao, Yuxin & Ohinata, Asako & van Ours, Jan C., 2016. "The Educational Consequences of Language Proficiency for Young Children," IZA Discussion Papers 9800, Institute of Labor Economics (IZA).
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    4. Yao, Yuxin & van Ours, Jan C., 2015. "Language skills and labor market performance of immigrants in the Netherlands," Labour Economics, Elsevier, vol. 34(C), pages 76-85.
    5. Yao, Y. & van Ours, J.C., 2015. "Language Skills and Labor Market Performance of Immigrants in the Netherlands," Other publications TiSEM 8df5e344-eb4e-4c90-9429-8, Tilburg University, School of Economics and Management.
    6. Yao, Yuxin & Ohinata, Asako & van Ours, Jan C., 2016. "The educational consequences of language proficiency for young children," Economics of Education Review, Elsevier, vol. 54(C), pages 1-15.
    7. Jeffrey Grogger, 2011. "Speech Patterns and Racial Wage Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 1-25.
    8. Budría, Santiago & Swedberg, Pablo, 2012. "The Impact of Language Proficiency on Immigrants' Earnings in Spain," IZA Discussion Papers 6957, Institute of Labor Economics (IZA).
    9. Gao, Wenshu & Smyth, Russell, 2011. "Economic returns to speaking 'standard Mandarin' among migrants in China's urban labour market," Economics of Education Review, Elsevier, vol. 30(2), pages 342-352, April.
    10. van Ours, Jan C. & Yao, Yuxin & Ohinata, Asako, 2016. "The Educational Consequences of Language Proficiency for Young Children," CEPR Discussion Papers 11183, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Yuxin Yao & Jan C. Ours, 2019. "Daily dialect-speaking and wages among native Dutch speakers," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(4), pages 653-668, November.
    2. Dovì, Max-Sebastian, 2019. "Does higher language proficiency decrease the probability of unemployment? Evidence from China," China Economic Review, Elsevier, vol. 54(C), pages 1-11.
    3. Grogger, Jeffrey & Steinmayr, Andreas & Winter, Joachim, 2019. "The Wage Penalty of Regional Accents," Rationality and Competition Discussion Paper Series 184, CRC TRR 190 Rationality and Competition.

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    More about this item

    Keywords

    Dialect-speaking; Wage penalty;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I2 - Health, Education, and Welfare - - Education

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