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The Wage Penalty of Regional Accents

Author

Listed:
  • Grogger, Jeffrey

    (University of Chicago)

  • Steinmayr, Andreas

    (LMU Munich)

  • Winter, Joachim

    (LMU Munich)

Abstract

Previous work has documented that speaking one’s native language with an accent distinct from the mainstream is associated with lower wages. In this study, we seek to estimate the causal effect of speaking with a distinctive regional accent, disentangling the effect of the accent from that of omitted variables. We collected data on workers’ speech in Germany, a country with wide variation in regional dialects. We use a variety of strategies in estimation, including an instrumental variables strategy in which the instruments are based on research findings from the linguistics of accent acquisition. All of our estimators show that speaking with a distinctive regional accent reduces wages by an amount that is comparable to the gender wage gap. We also find that workers with distinctive regional accents tend to sort away from occupations that demand high levels of face-to-face contact, consistent with various occupational sorting models.

Suggested Citation

  • 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.
    • Handle: RePEc:rco:dpaper:184
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    References listed on IDEAS

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    More about this item

    Keywords

    accent; dialect; wage penalty; discrimination; SOEP;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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