Your language or mine? The noncommunicative benefits of language skills

Authors: Ramon Caminal and Antonio Di Paolo

Economic Inquiry, Vol. 57, No 1, 726-750, January, 2019

Do languages matter beyond their communicative benefits? We explore the potential role of preferences over the language of use, theoretically and empirically. We focus on Catalonia, a bilingual society where everyone is fully proficient in Spanish, to isolate linguistic preferences from communicative benefits. Moreover, we exploit the language-in-education reform of 1983 to identify the causal effects of language skills. Results indicate that the policy change has improved the Catalan proficiency of native Spanish speakers, which in turn increased their propensity to find Catalan-speaking partners. Hence, the acquisition of apparently redundant language skills has reduced endogamy.

This paper originally appeared as Barcelona School of Economics Working Paper 852