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Economic returns to English proficiency for college graduates in mainland China

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  • Guo, Qian
  • Sun, Wenkai

Abstract

The present study examines the economic returns to English proficiency for college graduates in Mainland China, paths through which English proficiency may affect earnings, and possible moderation effects and crowding-out effects of English proficiency on other human capital. The analysis results indicate that English proficiency had significant effects on college graduates' starting salaries, their probability of changing permanent residence status from rural to urban, and their future earning potential. Possible reasons for the economic returns to English proficiency include increased chances of working in the employment sector where the average income was higher than in the other sectors and improved opportunities of landing job interviews. English proficiency may mitigate the effects of GPA rankings on salaries. Meanwhile, it did not seem to have been achieved at the expense of other important human capital investments. The results have policy implications as well as contributing to the literature.

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  • Guo, Qian & Sun, Wenkai, 2014. "Economic returns to English proficiency for college graduates in mainland China," China Economic Review, Elsevier, vol. 30(C), pages 290-300.
    • Handle: RePEc:eee:chieco:v:30:y:2014:i:c:p:290-300
    DOI: 10.1016/j.chieco.2014.07.014
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    6. Liang Chen & Wanli Li, 2022. "Language acquisition and regional innovation: Evidence from English proficiency in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 178-191, January.
    7. Hui Deng & Rui Du & Dongmei Guo & Weizeng Sun & Yuhuan Xia, 2023. "High‐stakes examinations and educational inequality: Evidence from transitory exposure to air pollution," Economic Inquiry, Western Economic Association International, vol. 61(3), pages 546-571, July.
    8. Zhenyu Yao & Wei Zhang & Xinde Ji & Weizhe Weng, 2023. "Short-Term Exposure to Air Pollution and Cognitive Performance: New Evidence from China’s College English Test," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(1), pages 211-237, May.
    9. Li, Yufan & Teng, Weichen & Tsai, Limin & Lin, Tom M.Y., 2022. "Does English proficiency support the economic development of non-English-speaking countries? The case of Asia," International Journal of Educational Development, Elsevier, vol. 92(C).
    10. Busso, Matias & Montaño, Sebastián & Muñoz-Morales, Juan S., 2024. "Unbundling Returns to Postsecondary Degrees and Skills: Evidence from Colombia," IZA Discussion Papers 17283, Institute of Labor Economics (IZA).
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