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Hacienda Pública Española / Revista de Economía Pública, 197(2/2011): 935
© 2011, Instituto de Estudios Fiscales
Knowledge of catalan, public/private sector choice and
earnings: Evidence from a double sample selection model*
ANTONIO DI PAOLO**
Universitat Autònoma de Barcelona (UAB) and
Institut d’Economia de Barcelona (IEB)
Recibido: Agosto, 2010
Aceptado: Mayo, 2011
Abstract
This paper explores the earnings return to Catalan knowledge for public and private workers in Cat
alonia. In doing so, we allow for a double simultaneous selection process. We consider, on the one
hand, the nonrandom allocation of workers into one sector or another, and on the other, the potential
selfselection into Catalan proficiency. In addition, when correcting the earnings equations, we control
for the correlation between the two selectivity rules. Our findings suggest that the apparent higher lan
guage return for public sector workers is entirely accounted for by selection effects, whereas knowl
edge 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 classifications: J24, J45, J70, C31
1. Introduction
The period of democracy in Spain, which started with the end of the dictatorship (1939
1975), has been characterized by largescale regional devolution. The economic, legal and po
* Acknowledgments: the author thanks Marta Masats (IDESCAT), JosepMaría Martínez (IDESCAT) and Elisen
da Vila (IDESCAT) for their special effort in supporting us with the data. Many thanks to Josep Lluís Raymond,
Ada F
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