By Kwon Mee-yoo
Staff Reporter
People fluent in English generally earn more than those uncomfortable with the language, but proficiency is not the decisive factor in wages.
Economics professors Kim Jin-young of Konkuk University and Choi Hyung-jai of Korea University presented the results of research on the relation between language fluency and earnings at the 10th Korean Labor & Income Panel Study (KLIPS) Conference, Thursday.
According to the research, workers who have jobs that use English or who speak English well by their own estimation receive about 30 percent more in wages than those who do not if all other conditions are similar.
This premium for good English speakers has been increasing since 2000. In 2001, people who had an English test because of their duties when entering a company were paid 139 percent of the wage paid to those not tested. The gap broadened over years marking 143 percent in 2004 and 165 percent in 2007.
However, the researchers expressed reservations with regard to a direct correlation between English proficiency and wages.
Another part of the study found employees who have a high score in the Test of English for International Communication (TOEIC) did not necessarily earn more than those with lower grades.
They also found that people with a low level of English proficiency but a high score on the state-run College Scholastic Ability Test (CSAT) received higher wages than those with good English ability but low CSAT grades.
``This indicated that other talents as wells as a higher English fluency were responsible for the high wage,'' the researchers said.
The study also revealed that people with well-educated fathers or who grew up in a metropolis tend to have better English ability.
``English has become more and more important in their career,'' said Lim Jong-sook, a senior consultant of Career Care, a local headhunting firm. ``English proficiency is closely connected to entering a company and will determine the chances of promotion later. If you are not fluent in English, you can't even apply to foreign-affiliated companies.''
For example, the annual salary of an employee who has earned Master of Business Administration (MBA) and worked four years at a foreign-affiliated firm would reach 60 million won ($44,000), while the annual salary of a person under the same conditions would be around 50 million won in a local enterprise.
``Companies prefer those who speak English well than those who do not. It is natural since the companies not only rely on domestic demand but aim to do global business,'' Lim said.