Language as Both Human Capital and Ethnicity

Abstract

In this study, we estimate earnings differentials for knowledge of thirteen minority languages in Canada's three largest urban areas. We find that conditional on knowledge of a majority language, knowledge of a minority language is associated with lower earnings. However, the negative differential diminishes for those languages with large local populations. This suggests a positive human capital effect which is for the most part swamped by a negative factor. We argue that this factor is a reflection of ethnicity operating either through ethnolinguistic labor market enclaves or labor market discrimination against minorities.