Learn English, Not the Local Language! Ethnic Russians in the Baltic States

This paper analyzes the return to dominant language fluency for ethnic Russians in the Baltic States. We look at male workers using Estonian Labor Force Survey for years 2000-2010 and the 1998 wave of a panel of high-school graduates of 1982. The results indicate that the ethnic Russian men enjoy little income premium on their skills of the dominant language. We identify positive returns only in the low end of the income distribution and in public administration sector. Surprisingly, the returns to English fluency are far larger. These outcomes point toward segregation and discrimination at the upper-end hiring.