Using unique matched employer-employee data from China, we discover that migrant workers in the manufacturing industry who are proficient in the local dialect earn lower wages than those who are not. We also find that workers with better dialect skills are more likely to settle for lower wages...

Business ownership and self‐employment constitute a vital part of the economy. Entrepreneurs can provide employment for themselves and others. While many of the determinants of entrepreneurship have been intensively studied, the link between language ability and entrepreneurship has not. Using...

Using unique matched employer-employee data from China, we discover that migrant workers in the manufacturing industry who are proficient in the local dialect earn lower wages than those who are not. We also find that workers with better dialect skills are more likely to settle for lower wages...