Effects of Multiple Language Usage in Western Europe

This paper studies the effect that using multiple languages at work has on a person's income, in Luxembourg and in other nations in Western Europe. Using data from the European Community Household Panel Survey, we first examine the degree of multiple language usage in 14 nations. We then study the relationship between multiple language usage and the earnings of people in the sample, controlling for other factors that affect earnings such as human capital, job, and personal characteristics. Finally, we examine some of the determinants of cross-national variations in the returns to multiple language usage, including the extent of tourism in the country. The results suggest large and significant returns to multiple language usage in many nations.