Wage Returns to English Skills: A Comparison of Local and Multinational Banks in

Abstract

While many studies have examined the wage returns to English language skill for immigrants in English-speaking countries, far fewer have examined the wage returns to English-language skill in countries where it is used primarily as a second language. This study examines the wage returns to English-language skill for workers in banks in Bangkok, Thailand. It is the first attempt to estimate the wage returns to English skill in Thailand, or in the Southeast Asia region in general. The study uses an original and detailed rubric to let respondents self-assess their English skill. There are positive wage returns to English skill of around 16-23%, but only for workers with 10 years of work experience or fewer. The study also examines the differential returns to English skills in local and multinational banks. The results indicate that workers in local banks clearly earn wage premiums for English language skills. Workers in multinational banks have on average better English skills and higher salaries than workers at local banks, but there is no clear relationship between English skills and salary for this group of workers.