| Between 1990 and 2005, Hispanics are expected to represent 15.7% of net labor force entrants (Martinez, 1993). Since many Hispanics lack basic skills and a high school diploma, their employment opportunities and earnings can be limited, leaving many to live in poverty (Hernandez, 1997). While previous research has established links between cognitive skills and labor market outcomes, little is known about the effect of these skills measured in a language other than English.;In this study, I explored the relationship between cognitive skills (measured in Spanish) and labor market outcomes for Spanish-speaking school dropouts. I used a unique data set from Florida that matched individuals' scores on the Spanish language version of the GED between 1995 and 1997 with data on their employment and earnings. Using multi-level logistic regression and generalized least squares regression analysis, I investigated the impact of literacy and mathematics skills on employment and earnings trajectories over the five years following GED receipt.;I found that literacy and mathematics skills measured in Spanish are indeed related to labor market outcomes, although somewhat differently, for both men and women. Literacy has a positive, statistically significant effect on the probability of employment among females; however for men, the effect of literacy on employment is negative. Mathematics skills have a positive, statistically significant effect on the probability of employment among males, but no significant effect on women's employment.;The effect of skills on earnings varies, depending on dropouts' age at GED receipt. Literacy skills have a positive, statistically significant effect for males and females around age 20, but no such effect for either gender in their 40's. Mathematics skills have a positive, statistically significant effect on the earnings of males of both age groups throughout the five years following GED receipt. Among women, mathematics skills have a negative, statistically significant effect on earnings, starting four years after GED receipt.;Skills affect different Spanish-speaking dropouts in different ways. Younger dropouts can compensate for a lack of work experience with higher mathematics and literacy skills. Consequently, different approaches to meeting the learning needs of Spanish-speaking dropouts are warranted. |
