Abstract
This paper is an application of a method recently developed by Heckman and MaCurdy (1984) to estimate a simultaneous-equations model with dichotomous endogenous variables. The substantive issue is the determinants of native-language maintenance among the Canadian Indian population. A simultaneous-equations model in which retention of an Indian mother tongue and various aspects of labor-force activity have reciprocal effects is contrasted with a model in which both language retention and economic activity are determined jointly by background characteristics such as education. Results support the latter model. This suggests that attempts to improve the economic conditions of native Indians (for example, by increasing education levels) may have a cost in terms of cultural maintenance.
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