Language and urban labor market segmentation: Theory and evidence

Qiang Li

Journal of Urban Economics, 2013, vol. 74, issue C, 27-46

Abstract: I propose a language theory of labor market segmentation. People of different language origins form separate urban labor submarkets and can switch between submarkets. Two types of wage differentials emerge, namely the Within-Labor-Market Wage Gap and the Within-Language-Group Wage Gap. The average wage in each market and a worker’s choice of the labor market depend on the population sizes of the relevant groups. These implications are tested using the 2001 Census of Canada Public Use Microdata. A unique feature of these data is the reported work language, which helps me to identify labor market segments. The empirical evidence supports my theory.

Keywords: Language; Labor market segmentation; Matching (search for similar items in EconPapers)
JEL-codes: J15 J3 J61 R23 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:74:y:2013:i:c:p:27-46

DOI: 10.1016/j.jue.2012.07.001

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