This report presents an overview of research evidence that has been collected through various channels in the EIA programme regarding the relationship between English language skills and economic gain in Bangladesh. It provides an overview of three research projects:



1) The EIA Employer Survey, a telephone survey of formal employers, across a range of sectors, focused upon employers’ perceptions of the need for English competence in their workplace, and the extent to which current employees or job applicants meet that need.



2) The Euromonitor study of job advertisements, and interviews with employment agencies, focused upon the proportion of advertised positions stating English competence as a requirement, and the salary premium for such vacancies.



3) BBC Media Action research, focused upon the relationship between tested and self-assessed English competence and economic status

Erling, Elizabeth

Power, Tom

English

Open Research Online (The Open University)

English in Action (EIA) (2014) Synthesis Report: Evidence of the Relationship Between English and Economic Gain in Bangladesh. Dhaka, Bangladesh: English in Action. Authors:Elizabeth J. Erling and Tom PowerAcknowledgements:We would like to thank the BBC Media Action for allowing us to draw on findings from their Janala Midline Survey 2011 and the BBC Janala Pre-/Post-Competency Study 2012. Furthermore, thanks to Mott MacDonald and Euromonitor for carrying out the fieldwork for the Employer Survey 2014 and Euromonitor Study (respectively). We would also like to thank Sonia Burton and other members of the EIA team for their support during the Employer Survey 2014 and Euromonitor Study.For more information about English in Action, visit: http://www.eiabd.com/© English in Action, 2014.Published by English in Action (EIA) in Dhaka, Bangladesh.© English in Action House 1, Road 80, Gulshan 2Dhaka-1212, Bangladesh.Phone: +88-02 8822161, 8822234 Fax: +88-02 8822663Email: info@eiabd.comPage 51. Introduction English in Action (EIA) is a nine-year programme designed to change the way that children, young people and adults in Bangladesh acquire English. The programme works in government schools with students and teachers and also targets adult learners through a range of media. Funded by UKaid (Department for International Development, DFID), the programme aims to reach millions children and adults by 2017.The EIA Theory of Change identifies a number of assumptions that link the programme’s outputs (greater access to and use of EIA methods and products) to its desired outcome (to increase significantly the number of people able to communicate in English to levels that enable them to participate fully in economic and social activities and opportunities). These assumptions recognise that the effect of the link between English and economic development in Bangladesh can first and foremost be identified by examining the impact on individuals, rather than on the economy as a whole. The EIA DFID Annual Review in Spring 2013 recommended more work be done to test assumptions about the relationship between English language skills and economic gain. In response, this report presents an overview of research evidence that has been collected through various channels by the EIA programme regarding the relationship between English language skills and economic gain in Bangladesh. It provides an overview of the rationale, methodology and findings of three research projects:  1. The EIA Employer Survey, 2. The Euromonitor study, and 3. BBC Media Action research. It then provides a meta-analysis of the combined findings of this research, comparing them with findings from other studies conducted in South Asia. 2. Employer survey2.1 Employer survey 2013 This report by Mott MacDonald presents the findings of a survey that investigated the demand for, and use of, English by employers and in post-school education in Bangladesh in 2013 (Mott MacDonald 2013). It is a follow-up to the EIA Baseline Employer Survey, conducted in 2009 (EIA 2009). Data collection in both of these studies (EIA 2009, Mott MacDonald 2013) was limited to the Dhaka area. The population of respondents included representatives from the following types of organisation:Page 8Regarding employment candidates, 49.5% of the respondents thought that the available candidates have the English language skills needed, while 51% thought they do not. 64% said that they are very or quite likely to employ candidates having intermediate level English language skills. Only 15% said they are not likely or not at all likely to prefer candidates with an intermediate level of English skills. Regarding salary levels, few respondents reported that their firm offers higher wages to candidates with English language skills (aside from the hotels and restaurants industry). However, as mentioned above, they reported that they are more likely to hire candidates if they have English language skills. 3. Euromonitor studiesEuromonitor research has attempted to investigate the extent to which English language skills are an important factor in the economic growth of various developing countries, including Bangladesh (Euromonitor 2010, 2012). In these studies, a scoring system for each country’s economy and education system was created in order to determine the nature of the relationship between the two. Interviews were conducted with stakeholders within the market, such as recruitment agencies, corporate businesses, educational institutions and other semi-official sources. From this, a consensus view of the salaries paid in each position/role was obtained. This was validated through secondary research, which reviewed salaries shown in job advertisements posted on job websites and print media.3.1 Findings from the 2010 Euromonitor studyThe 2010 study, which includes Bangladesh, concludes that, while economic growth may be slow in the country, English is seen as offering a key competitive advantage in a difficult employment environment.Regarding the employment market in the sectors involved in the study, Euromonitor found that English was the main business language for most of the companies interviewed. Around 86% of those interviewed felt that English language skills were an important factor in recruiting new employees (of which 43% felt that they were very important). 68% of job vacancies captured within a given week required at least an intermediate level of English. With regards to an individual’s economic advantage in terms of English language skills, the salary gap between someone who can speak English and someone who cannot was found to be 5–15%. Table 2 shows the differentiation in various professional salaries for individuals with at least intermediate English skills compared to those with no English skills.Page 9 Table 2: Salary differentiation: English skills vs. no English skills (Euromonitor 2010: 100)77% of the respondents stated that employees who speak better English advance faster in their careers than those without a good grasp of the language. This suggests that proficiency in English plays an important role in career advancement. 3.2 Findings from the 2013 Euromonitor study In 2013, a follow-up study was conducted by Euromonitor for English in Action to provide up-to-date evidence on the economic benefit of English language skills in Bangladesh (Euromonitor 2013). The study was carried out to create an updated version of the salary differentiation table (Table 2 above) and to provide an indication of the proportion of jobs for which English language skills were required. Following the same methodology as the 2010 study, Euromonitor conducted trade interviews with 10 out of the 12 largest recruitment agencies in Bangladesh, which potentially cover as much as 30–40% of the total formal employment market. Within the employment market Euromonitor found that skills in English help people secure jobs with well-established companies (mainly in cities such as Dhaka). Employers value language skills for their potential to open up new markets and the ability to communicate with customers and clients in their own language, and particularly in jobs that require international travel.Professional salaries withEnglish skills to at leastintermediate level(gross salary/month, US$)Job TileProfessional salarieswith no English skills(gross salary/month,US$)Director 2,400 2,000Senior Manager  960  720Manager  720  645Senior Analyst  530  420Analyst  452  375Secretary  380  220Carpenter  280a  210Electrician  262a  250Plumber  295a  260Receptionist  380  210 Page 10The search of job advertisements found that around 40% of jobs advertised on job portals and 20% of jobs advertised in newspapers require English. Some corporates have also started considering IELTS scores as a benchmark to evaluate the English proficiency of applicants.  Table 3: Salary differentiation: English skills vs. no English skills (Euromonitor 2013)With regard to the economic advantage of an individual’s English language skills, Euromonitor reports that corporates require at least an intermediate level of English and are willing to pay more for candidates with an excellent command of the language. There is a 25–30% increase in salary for jobs where the candidate has good English skills. Table 3 (above) shows the differentiation in various professional salaries for individuals with at least intermediate English skills compared to those without. It should be noted that the 2010 study reported substantially higher salaries than the 2013 study. The cause for this is unknown, but might be attributed to salary reductions after 2010, or alternatively fluctuations in exchange rates or other indirect factors.Job TileProfessional salaries withEnglish skills to at leastintermediate level (gross salary/month, US$)Professional salaries with no English (gross salary/month,US$)% of advertsrequiring EnglishDirector 2,050 1,650 35-40Snr Manager  970  750 20-30Manager  820  700 10-25Snr Analyst  550  450 30-35Anlyst  520  400 -Marketing Exec  380  300 20-30Man.Trainee  370 300 15-25Receptionist   380 250 10-25Secretary  360 230 20-25Overall +25-30%  - 20-40% The findings do not show a causal relationship, which means that the change in one of the variables is not necessarily the result or consequence of a change in the other variable. However, positive associations can be found. Details of the findings from each dataset will be described in more detail below. 4.2 Findings from the 2011 dataset Across the dataset, there is a statistically significant, albeit small, association between monthly family expenditure and self-reported level of English, with level of English predicting 3.8% of family expenditure2. This finding does not necessarily mean that if an individual attains a high level of English their expenditure will increase by 3.8%. Rather, it means that of the differences in family expenditure that are found in the whole of the dataset, 3.8% can be explained by a person’s level of English. This is a small but significant impact, but other variables clearly also have important effects on a family’s expenditure. Overall, a one-point increase in the self-reported English level scale was associated with an average increase of 262 Taka (roughly £2.20) in the average monthly family expenditure), equal to 2% of the average monthly family expenditure. For the subgroup of participants in employment (skilled and unskilled), self-reported level of English may predict almost 6% of the monthly family expenditure. A one-point increase in the self-reported English level scale was associated with an average increase of 337 Taka (roughly £2.80), equal to 3% of the average monthly family expenditure3.  For the subgroup of participants only in skilled occupations, the association was stronger. Self-reported level of English may predict 14% of monthly family expenditure. A one-point increase in the self-reported English level scale was associated with an average increase of 464 Taka (roughly £3.85), equal to 4% of the average monthly family expenditure. 4.3 Findings from the 2012 dataset There is also a statistically significant, albeit very small, association between monthly household income and the self-reported level of English, with the level of English predicting only about 1.5% of the monthly household income. A one-point increase in the self-reported English level was associated with an average increase of 255 Taka (roughly £2.10) in the average monthly household income. This amount was equal to 2% of an average monthly household income.2 All associations reported here are statistically significant with p value <.01 or <.05, rejecting the null hypothesis. 3 This analysis did not find any relationship between employment (i.e. having a job vs. being unemployed) and self-reported level of English.Page 12This relationship is much stronger when looking only at those respondents in employment4. For the subgroup of participants in employment, the self-reported level of English may predict 2.5% of the monthly household income. A one-point increase in the self-reported English level scale was associated with an average increase of 386 Taka (roughly £3.20), equal to 3% of the average monthly household income.For the subgroup of participants in skilled occupations, the self-reported English level may predict 4.5% of the monthly household income5. A one-point increase in the self-reported English level scale was associated with an average increase of 600 Taka (roughly £5.00), equal to 4% of the average monthly household income.5. Meta-analysisThe Euromonitor studies provide a broad overview of the economic climate in Bangladesh and the need for English. Euromonitor (2010) reported that, in Bangladesh, English is seen as offering a key competitive advantage, both in getting a job and in receiving a higher salary. The 2013 study confirmed this, finding that English was the main business language for most of the companies interviewed. The EIA Employer Survey (2013), which provides more insight into the company level perspective, confirmed the need for, and regular use of, English. How much of the firm’s business involves dealing with non-Bangla speakers varied from industry to industry, with the hotel and restaurant industry attaching huge importance to English, and RMG companies finding it only important for staff at high levels. 36% of respondents reported that their organisation only had contact with non-Bangla speakers up to 50 times per year (with all respondents reporting at least this much activity), while an average of 9% responded that they interact with non-Bangla speakers 3000+ times per year. The remaining 55% reported something in between.The EIA Employer Survey also found that an average of 35% of employees across the industries need English language skills. Needs for English differ across the industries according to location within Dhaka, type of client, level of position, and type of job. 77% of the respondents felt that the need for English has increased over the last two years. While in 2009, primarily a need for speaking skills was identified, in 2013 the majority of respondents recognised a need for all four skills. While a large number of respondents felt that their firm did not have the English language skills for its required activities (45%), only 14% provided English language training to their employees. 4 The level of English could not be used to predict whether a person was employed or not, using these data alone.5 Level of English was not significant for predicting the income of participants in unskilled occupations. This means that level of English cannot explain the different level of incomes among these participants.Page 13Regarding the hiring of new employees, Euromonitor (2013) reported that skills in English help people secure jobs with well-established companies. Candidates with good English skills have a 30–50% higher chance of being employed. Around 40% of jobs advertised on job portals and 20% of jobs advertised in newspapers require English. Around 86% of the organisations interviewed felt that English language skills were an important factor in recruiting new employees. Some corporates had even started considering IELTS score as a benchmark to evaluate the English proficiency of applicants. The EIA Employer Survey corroborated these findings, as 64% of respondents said that they are very likely or quite likely to employ candidates having intermediate level English language skills. It also found that 51% of respondents thought that available candidates do not have the English language skills needed. Regarding differences in salary related to English language learning, the Euromonitor (2010) study found the salary gap between someone who can speak English and someone who cannot was 5–15%. In 2013, it was found that there is a 25–30% increase in salary for jobs where the candidate had good English skills, with corporates willing to pay more for candidates with excellent command of the language. The EIA Employer Survey found that, while English may play a very important role in getting a job, there are very few respondents that report that their firm offers higher wages for candidates with English language skills (aside from the hotels and restaurants industry). Thus, the role of English in career progression is an area in which more research would be beneficial. The BBC Media Action research gives more insight into the relationship between English language skills and economic gain for individuals. In both datasets, there was found to be a small but significant association between tested and self-reported level of English and income (measured by monthly family expenditure or monthly family income). In both datasets, a one-point increase in the self-reported English level scale was associated with an average increase of over 200 Taka (roughly £2) in earnings, equal to 2% of the average monthly family expenditure. For participants in skilled employment, self-reported levels of English had a stronger association with economic gain. For skilled employees, a one-point increase in the self-reported English level scale was associated with an increase of 464–600 Taka (between £3.85 and £5), equal to 4% of the average monthly family expenditure. When the more detailed scale used in the BBC Media Action research is matched against the broader scale used in the Euromonitor study, similar results are found. According to BBC Media Action research using two different high-powered data sets, those with intermediate English earn 22-27% more than those without English, after controlling for other individual characteristics such as age and education level. This is in line with the Euromonitor (2013) figure of 25-30%. When restricting the BBC Media Action samples to just those learners in employment, the premiums increased to 35-36%.  The BBC Media Action study also suggests that, while English language ability seems to have a relationship with economic gain, other variables clearly have an important effect.Page 14

Synthesis Report: Evidence of the Relationship between English and Economic Gain in Bangladesh

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Synthesis Report: Evidence of the Relationship between English and Economic Gain in Bangladesh

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