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

Abstract

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

Di Paolo, Antonio, Knowledge of Catalan, Public/Private Sector Choice and Earnings: Evidence from a Double Sample Selection Model (September 1, 2010). XREAP Working Paper No. 2010-09, Available at SSRN: https://ssrn.com/abstract=1815042 or http://dx.doi.org/10.2139/ssrn.1815042

Antonio Di Paolo (Contact Author)

University of Barcelona ( email )

Gran Via de les Corts Catalanes, 585
Barcelona, 08007
Spain

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