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Using unique matched employer-employee data from China, we discover that migrant workers in the manufacturing industry who are proficient in the local dialect earn lower wages than those who are not. We also find that workers with better dialect skills are more likely to settle for lower wages in exchange for social insurance. We hypothesize that they are doing so in the hope of obtaining permanent...
Business ownership constitutes a vital part of the economy. While many of the determinants of entrepreneurship have been intensively studied, the link between language proficiency and entrepreneurship has not. Using the Migrant Dynamics Monitoring Survey, this paper studies the importance of language skills for migrant entrepreneurship. We find that migrants who can understand and fluently speak the...
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