Knowledge of Catalan, Public/Private Sector Choice and Earnings: Evidence from a Double Sample Selection Model
XREAP Working Paper No. 2010-09
36 Pages Posted: 22 Apr 2011
Date Written: September 1, 2010
This paper explores the earnings return to Catalan knowledge for public and private workers in Catalonia. In doing so, we allow for a double simultaneous selection process. We consider, on the one hand, the non-random allocation of workers into one sector or another, and on the other, the potential self-selection into Catalan proficiency. In addition, when correcting the earnings equations, we take into account the correlation between the two selectivity rules. Our findings suggest that the apparent higher language return for public sector workers is entirely accounted for by selection effects, whereas knowledge of Catalan has a significant positive return in the private sector, which is somewhat higher when the selection processes are taken into account.
Keywords: Language, Sector Choice, Earnings, Simultaneous Selection, Catalonia
JEL Classification: J24, J45, J70, C31
Suggested Citation: Suggested Citation