English as the Lingua franca and the Economic Value of Other Languages: The Case of the Language of Work in the Montreal Labor Market

Abstract

An important feature of Canada is that it has two official languages, English and French, and that one of them, English, is also the international lingua franca. This situation may have particular policy implications. Within Canada, the Montreal metropolitan area presents an interesting case in point: it has a majority of native French speakers, an important minority of native English speakers, and many immigrants from various linguistic backgrounds who try to make their way into the labor market. Using confidential micro-data from the 2006 Canadian Census, this chapter investigates the determinants and the economic values of the use of different languages at work in Montreal. Workers are divided into three groups: French, English and Other mother tongues, and indices are defined for the use of French, English, and Other languages at work. It is found that the use of English at work by non-English native speakers is positively related to the education level of the workers, while there is no such relationship for the use of French by native English speakers. The returns to using at work a language that is different from one’s mother tongue are analyzed with ordinary least squares and instrumental variables regressions. For the English mother tongue group, using French at work has little or no reward, while using English at work pays a lot for the French mother tongue group. For the Other mother tongues group, there is a high payoff to using an official language at work, especially English. This situation is not due to the inferior economic status of the native French speakers; it is due to the fact that English is the international lingua franca. The policy implications of the above results are discussed.