Parents’ Willingness to Pay for Bilingualism: Evidence from Spain

Abstract

We analyse parental school preferences in two contiguous provinces of northern Spain, which offer very different school choices since only one of them is bilingual. Basque-Spanish bilingualism affects the school system, labour market, and, consequently, family budgets in the Basque Country. In Cantabria, Spanish is the only official language, and English is the second language typically offered in the school system. Using two discrete choice experiments applied to school choice, we estimate parents’ willingness to pay for different school characteristics in the two areas. We find that the most highly valued school characteristic in both areas is the language of instruction, but in the Basque Country, where the minority language indirectly has a wage premium in the local labour market, its importance relative to other characteristics is more salient.