Home Assignment

Spring: 2021

Course Title: Research Methodology

Course Code: ECO 490

Section: 1

Submitted to:
Dr. A.K Enamul Haque

Professor

Department of Economics

East West University

Submitted by:
Name ID
Abdullah Al Fahad 2017-2-30-017
Title: "Learning Third Language (Mandarin) to Enhance Job
Market Outcome for Bangladeshi Workers”
Research Objective:
1. To find out whether foreign language skill help to find job opportunity
2. To determine which language should be provided- Mandarin or other language.

Analysis and Methodology:

In this paper, they look at the effects of language skills on jobs and wages, as well as the impact
of Hong Kong's handover from the UK to China in 1997 on language competence premiums in
the Hong Kong labor market. Using Hong Kong population censuses statistics, the author tries
to emphasize Hong Kong citizens of Hong Kong who speak Cantonese as a native language in a
second language (Mandarin and English). There is literature available those are used
demographic, community-level, and other characteristics to estimate the Labor market
outcome by learning mandarin and another language. Analysis using a log-linear regression
model to estimate labor market outcome by using Mandarin, English, census fixed effects, and
vector of individual characteristic.

Variables Definitions Source

Dependent Variable
Y1 Labor Market Outcome
Independent Variable
X1 Mandarin Zhou, Y., Zhu, R., & Zheng, X.
(2020)
X2 English
Xi Vector of Individual
Characteristics
Ɵi Census Fixed Effects
They are determining the relationships between the two languages and labor market outcomes
where Mandarin and English are also included in regressions separately. Xi is a single variable of
age, age squares, sex dummies, educational attachment dummies (pre-primary, primary,
secondary, post-school, post-degree/similar, de-graduate, post-graduate, and Ph.D.), and
marital dummies (never married, widowed and divorced or separated) and Ɵi corresponds to
the fixed results of the census. [Zhou, Y., Zhu, R., & Zheng, X. (2020)]
Our regression models can be obtained by the ordinary least square method (OLS). Justification
for using the ordinary least square method (OLS) comes from different influential literature
[Zhou, Y., Zhu, R., & Zheng, X. (2020)]
To estimate the labour market outcome the regression model as:
Labor Market Outcome ( Yi ) =β 0+ β i [ Other language ] + β 1 [ Mandarin ] + β2 [ Gender interest ( Male∨female ) ] +ε i

where,

𝜷𝟎 : The constant term or y-intercept

𝜷i : Coefficient of independent variable Other languages (Arabic, English, French,

and Spanish)

𝜷𝟐 : Coefficient of independent variable Mandarin

𝜷𝟑 : Coefficient of independent variable Gender Interest (Interest of learning new

languages)
Et : The error term

Theory and Measurement of Variables:

In the literature, they concentrate on two labor market results in the literature: (I) whether or
not they are in paid jobs, and (ii) logarithmic monthly earnings from their main work. [Zhou, Y.,
Zhu, R., & Zheng, X. (2020)]. They investigate both Mandarin and English in order to figure out
that the two language skills coefficient results at the 1% level are positive as well as statistically
important, suggesting that both Mandarin and English language skills help to achieve higher
earnings and employment opportunities. The calculation of the coefficient of English is far
bigger than that of Mandarin, which means that the premium of English on the labor market is
higher than Mandarin. This result is not difficult to see, for since it began in the second half of
the last century, Hong Kong has become an international capital. English is most commonly
used as a foreign language for trading markets and for interacting with clients and business
partners worldwide.
On the other hand, I am trying to find out how the mandarin language can give a better job
opportunity. As language skill is human capital, so my focuses on whether mandarin is going to
give any change to the employment rate and create jobs for graduate students [Chiswick, B. R.,
& Miller, P. W. (1995)]. Like the research paper of Hong Kong where it is giving evidence that
learning mandarin can enhance the job market outcome and another language could important
for a student who drop out of university. Language like Arabic which could create job
opportunity in the middle east. By doing the regression analysis I can find which language could
rise the job outcome for Bangladeshi people. And also see how many males and females are
interested to learn foreign languages. And if the coefficient of Mandarin is positive and higher
than other languages and seeing people are more interested to learn a new language then it
will a great decision to introduce Mandarin to them.
References:

1) Zhou, Y., Zhu, R., & Zheng, X. (2020). Second language skills and labor market outcomes:

Evidence from the handover of Hong Kong. China Economic Review, 59, 101366.

2) Chiswick, B. R., & Miller, P. W. (1995). The Endogeneity between language and earnings:

International analyses. Journal of Labor Economics, 13(2), 246-288.