Economic Returns to Speaking the Right Language(s)? Evidence from Kazakhstan's Shift in State Language and Language of Instruction

Alisher Aldashev and Alexander Danzer

Discussion Papers in Economics from University of Munich, Department of Economics

Abstract: This paper investigates the economic returns to language skills and bilingualism. The analysis is staged in Kazakhstan, a multi-ethnic country with complex ethnic settlement patterns that has switched its official state language from Russian to Kazakh. Using two newly assembled data sets, we find negative returns to speaking Kazakh and a negative effect of bilingualism on earnings while Russian was the official state language in the 1990s. Surprisingly, the Kazakh language continues to yield a negative wage premium 13 years after it has been made official state language. While we do neither find evidence for an ethnically segmented labor market nor for reverse causality, the low economic value of the Kazakh language can be explained by the comparatively poor quality of schools with Kazakh as language of instruction. Based on PISA data, we illustrate that scholastic achievements are substantially lower for pupils taught in Kazakh, despite the official support for the titular language. Our results suggest that switching the official state language without appropriate investments in school resources is unlikely to cure the economic disadvantage of a previously marginalized language.

Keywords: Bilingualism; returns to language skills; wage premium; language policy; language of instruction (search for similar items in EconPapers)
JEL-codes: I21 J24 O15 P23 (search for similar items in EconPapers)
Date: 2014-11
New Economics Papers: this item is included in nep-cis, nep-cwa and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Economic Returns to Speaking the Right Language(s)? Evidence from Kazakhstan's Shift in State Language and Language of Instruction (2014)
Working Paper: Economic Returns to Speaking the Right Languages)? Evidence from Kazakhstan's Shift in State Language and Language of Instruction (2014)
Working Paper: Economic Returns to Speaking the Right Language(s)? Evidence from Kazakhstan's Shift in State Language and Language of Instruction (2014)
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