Can Compulsory Schooling Reduce Language-Based Educational Gaps? Evidence from a Policy Change in Paraguay

Lyliana Gayoso de Ervin

Economic Development and Cultural Change, 2021, vol. 69, issue 2, 569 - 589

Abstract: Persistent educational gaps due to differences in language exist in numerous countries, and research on policies to reduce these gaps is limited. This study examines the impact of a compulsory schooling policy implemented in 1994 in Paraguay—where Spanish and the indigenous language Guaraní are both official languages—on the existing language-based educational gap. Paraguay is unique in that a majority of its population speaks some Guaraní and that the use of Guaraní is not associated with any particular racial or ethnic group. Combining differences in exposure to the policy with differences across language spoken suggests that the policy was associated with a 0.34-year increase in education for Guaraní speakers (the language-disadvantaged group) relative to Spanish speakers (the language-advantaged group). This finding is robust to various empirical specifications and an event study analysis, suggesting that this type of policy may be an effective way to improve the schooling of language-disadvantaged students in similar country contexts.

Date: 2021
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