Language Fluency and Earnings: Estimation with Misclassified Language Indicators
نویسندگان
چکیده
We use panel data to analyze the determinants of speaking uency and wages of immigrants. Our model takes account of two problems that may bias OLS estimates of the impact of speaking uency on earnings. First, subjective variables on an ordinal discrete scale, such as self-reported language ability, can suffer from misclassi cation errors. The model decomposes misclassi cation errors into a time-persistent and a time-varying component. Second, the model accounts for correlated unobserved heterogeneity in language and earnings equation. The main nding is that these two generalizations of the standard model both lead to substantial changes in the estimated effect of speaking uency on earnings.
منابع مشابه
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