published in: Journal of Applied Econometrics, 2005, 20 (6), 771-795
This paper applies the theoretical literature on nonparametric bounds on treatment effects to
the estimation of how limited English proficiency (LEP) affects wages and employment
opportunities for Hispanic workers in the United States. I analyze the identifying power of
several weak assumptions on treatment response and selection, and stress the interactions
between LEP and education, occupation and immigration status. I show that the combination
of two weak but credible assumptions provides informative upper bounds on the returns to
language skills for certain subgroups of the population. Adding age at arrival as a monotone
instrumental variable also provides informative lower bounds.
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