Working Paper: CEPR ID: DP9091
Authors: Jacques Melitz
Abstract: The paper proposes a general model that will encompass trade and social benefits of a common language, a preference for a variety of languages, the fundamental role of translators, an emotional attachment to maternal language, and the threat that globalization poses to the vast majority of languages. With respect to people?s emotional attachment, the model considers minorities to suffer losses from the subordinate status of their language. In addition, the model treats the threat to minority language as coming from the failure of the parents in the minority to transmit their maternal language (durably) to their children. Some familiar results occur. In particular, we encounter the usual social inefficiencies of decentralized solutions to language learning when the sole benefits of the learning are communicative benefits (though translation intervenes). However, these social inefficiencies assume a totally different air when the consumer gains of variety are brought in. One fundamental aim of the paper is to bring together contributions to the economics of language from labor economics, network externalities and international trade that are typically treated separately.
Keywords: language; trade; welfare
JEL Codes: D60; F10; Z10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| political and market integration (F15) | reduction of the number of languages (F36) |
| reduction of the number of languages (F36) | negative impact on cultural identity (F69) |
| reduction of the number of languages (F36) | negative impact on emotional attachment to maternal languages (F66) |
| failure of parents to transmit maternal language (J12) | loss of cultural identity (Z10) |
| economic integration (F15) | language loss (J63) |
| social inefficiencies of language learning arise when benefits are solely communicative (D61) | translation serves as a mitigating factor (Y20) |
| language diversity can enhance welfare (I31) | social inefficiencies change significantly (D61) |