Plausibly Exogenous [1986] - Language Skills (07/12/2025)

LHS Variable
Foreign trade

RHS Variable
Knowledge of languages

Source of Exogenous Variation
Political foundations of the communist countries’ education systems, which created a long-term divergence in language skills between Eastern and Western Europe

- Fidrmuc and Fidrmuc (2015), “Foreign languages and trade: evidence from a natural experiment”