Discussion Paper Details

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Title: The Wage Penalty of Dialect-Speaking

Author(s): Jan C. van Ours and Yuxin Yao

Publication Date: November 2016

Keyword(s): Dialect-speaking and wage penalty

Programme Area(s): Labour Economics

Abstract: Our paper studies the effects of dialect-speaking on job characteristics of Dutch workers, in particular on their hourly wages. The unconditional difference in median hourly wages between standard Dutch speakers and dialect speakers is about 10.6% for males and 6.7% for females. If we take into account differences in personal characteristics and province fixed effects male dialect speakers earn 4.1% less while for females this is 2.8%. Using the geographic distance to Amsterdam as an instrumental variable to dialect-speaking, we find that male workers who speak a dialect earn 11.6% less while for female workers this is 1.6%. Our main conclusion is that for male workers there is a significant wage penalty of dialect-speaking while for female workers there is no significant difference.

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Bibliographic Reference

van Ours, J and Yao, Y. 2016. 'The Wage Penalty of Dialect-Speaking'. London, Centre for Economic Policy Research.