Economic return of English language proficiency: Do English proficiency scores predict employee income in China?

As English is the international language of the global economy, possessing sufficient English language skills or passing large-scale standardized proficiency tests is believed to have various economic returns. Situating this common belief about English proficiency test scores within the argument-based validity framework, economic returns of English proficiency can be considered a source of validity evidence at the extrapolation inference level. Using a survey design, this study investigated the relationship between English language proficiency and monthly income in China. We measured English proficiency using both self-assessment and the outcome of standardized proficiency tests in college (i.e., the College English Test), and included covariates related to educational and professional backgrounds, employment history, and city of residence. Results from ordinal regression analyses on 602 survey responses showed that several covariates can explain variance in monthly income. After controlling these covariates, standardized test outcomes can predict starting income but not current income. Coupled with survey items on English use in the workplace, the findings suggest that, although English might not be used as frequently as one would expect, English language proficiency still plays a role in the Chinese labor market. Implications for policy makers and individual job seekers are discussed.