Economic returns to English proficiency for college graduates in mainland China

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.