Language skills and wage differences among wage earning males : Canada, 1980
Date
1990
Authors
Lax, Leslie
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Abstract
The officially bilingual nature of Canada lends importance to the economic returns to language skills, as measured by earned income. This thesis analyses the economic relationship between language skills and wages. A theory of language markets is developed which suggests that premiums will accrue to bilinguals, and that those who speak neither English nor French would benefit by learning either or both of the official languages.
A human capital model is used to estimate the contribution of language and other human capital characteristics to earned wages. The sample data are drawn from Canadian 1981 Census data and include only full-time employed, wage earning males. The model is applied to five geographic areas. Eight language groups are used, with Anglophones as the reference group. The estimates are compared with results from a study by Geoffrey Carliner (1981) using a similar model and data from the 1971 Census. Source of wage difference statistics are calculated and these, too, are compared with the results reported by Carliner (1981).
The comparison model reports that bilingual Anglophones and bilingual Francophones earn a premium over Anglophones. In addition, those who speak neither English nor French earn a premium to learning either or both official languages. The wage discount that Francophones experience with respect to Anglophones has been reduced in the ten year period 1970 to 1980.
The basic comparison model is extended, through the addition of relevant independent variables, to test the robustness of the comparison model. This model is estimated for two areas, English Canada and Quebec. The extended model provides a better goodness-of-fit statistic, indicating that it is a better model with which to analyse the determinants of wages.
Results from the extended model tend to support the findings of the comparison model with respect to the success of Federal language policies. Language premiums and the returns to learning official languages are consistent with the view that Federal language policies have been successful in English Canada. However, in Quebec, the impact of Federal bilingualism policies is harder to find. With respect to Quebec language policies, results from the extended and comparison models may be seen to be pointing to the success of policies promoting the use of the French language in Quebec.