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Nonparametric bounds on the returns to language skills
Author(s) -
González Libertad
Publication year - 2005
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.795
Subject(s) - nonparametric statistics , instrumental variable , econometrics , immigration , monotone polygon , variable (mathematics) , selection (genetic algorithm) , population , estimation , economics , mathematics , computer science , demography , geography , sociology , artificial intelligence , mathematical analysis , geometry , archaeology , management
Abstract This paper applies the theoretical literature on nonparametric bounds on treatment effects to the estimation of how limited English proficiency (LEP) affects wages and employment opportunities for Hispanic workers in the United States. I analyse the identifying power of several weak assumptions on treatment response and selection, and stress the interactions between LEP and education, occupation and immigration status. I show that the combination of two weak but credible assumptions provides informative upper bounds on the returns to language skills for certain subgroups of the population. Adding age at arrival as a monotone instrumental variable also provides informative lower bounds. Copyright © 2005 John Wiley & Sons, Ltd.

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