Is There a Wage Penalty for Speaking an Indigenous Language? Exploring Economic Outcomes among Native Americans in the U.S.

Abstract

Bilingualism in U.S. labor markets is typically seen as beneficial, providing diverse skills and broader job opportunities. Yet, the economic impact of indigenous languages in urban settings has been less explored. This study examines wage differences between bilingual Native Americans fluent in an indigenous language plus English, and their monolingual English-speaking counterparts. Prior research has linked lower earnings among bilingual Native Americans to their prevalence in isolated or culturally unique areas. The present study hypothesizes that adjusting for metropolitan area characteristics may eliminate these wage disparities. Utilizing data from the American Community Survey from 2010-2019, and employing Hierarchical Regression and Propensity Score Matching, this paper assesses hourly wages among U.S.-born Native Americans in metropolitan areas. It explores whether the observed wage penalties for bilingual individuals are dependent on geographic characteristics, rather than inherent linguistic skills or cultural bias. The findings reveal a statistically persistent significant wage penalty for individuals fluent in indigenous languages in addition to English in urban areas of the United States.