The Endogeneity Between Language and Earnings: International Analyses.

This study is concerned with the determinants of dominant language fluency, its effects on earnings, and its endogencity with earnings among immigrants. Dominant language fluency is hypothesized to be a function of three fundamental variables exposed to the language, efficiency in second language acquisition, and economic benefits from language fluency. Conceptual variables with empirical counterparts are developed. Larnings are hypothesized to be a function of language skills, among other variable. Ordinary least squares, instrumental variables, and sample selection bias techniques are used to estimate the equations for Australia. Comparisons are made with analyses for the United States, Canada, and Israel. [ABSTRACT FROM AUTHOR]