In multilingual labor markets agents with high proficiency in more than one language may be selected into occupations that require high levels of skill in communicating with customers or writing reports in more than one language. In this paper we measure this effect in Catalonia, where two...

Using a matched firm-worker dataset, we show both theoretically and empirically that positive assortative matching between firms and workers leads to an underestimation of the absolute value of wage elasticity of labor demand.