The Effects of Spanish-Language Background on Completed Schooling and Aptitude Test Scores

We investigate the effect of speaking Spanish at home as a child on completed schooling and aptitude test scores using data on Hispanics who grew up in the U.S. from the NLSY79. We model the accumulation of traditional human capital and English fluency, leading to the joint determination of schooling and test scores. We find that speaking Spanish at home reduces test scores but has no significant effect on completed schooling. The reduction in test scores is more dramatic the higher the education of the parents and when the choice of home language is endogenous.