Language Ability or Personality Works?: The Return to Possessing a Global English Test Certificate for College Graduates in China

Abstract

Purpose —English language skills have great influence on labors’ earnings from the global perspective. To reveal the economic returns to English language ability in Chinese labor market, we investigate how the global English test certificate affects college graduates’ wage. Design/Approach/Methods —We adopt the ordinary least squares (OLS) and propensity score matching (PSM) methods, using data from Chinese Education Panel Survey (CEPS). Findings —The results indicate that with English test scores controlled, possessing global English test certificates have an additional positive effect on wage premiums whereas domestic English test certificates do not. Therefore for college graduates in China, the act of chasing certificates represents proactivity and is rewarded at the initial employment stage. Originality/Value —Our findings imply that global English test has great comprehensive value in labor market: the certificate is not only the important signal to students’ English language, but the crucial indicator to one's productivity personality which is rewarded at the initial employment stage.