Syed M. Mursalin

The Economic Returns of the English Language in Bangladesh: Evidence from Other Countries By Syed Md Mursalin Islam. Table of Contents Abstract4 1. Introduction5 2. Literature Review5 2.1 Overview of Economic Benefits of English Proficiency5 2.2 Regional and Sectoral Differences6 2.3 The Role of Education6 2.4 Insights from Other Countries6 3. Methodology7 4. Results and Discussion7 4.1 Wage Differentials7 4.2 Employment Opportunities8 4.3 Regional and Sectoral Considerations8 4.4 Challenges and Limitations9 4.5 Policy Recommendations9 5. Conclusion11 References12 Abstract The English language is one of the major drivers of economic development, competitiveness in the labor market, and global integration, especially for developing countries like Bangladesh. This paper synthesizes the financial returns of English proficiency from several countries, including India, South Africa, and China. It places these findings within the socio-economic context of Bangladesh. It analyzes the impact of English on wages, employment, and international opportunities, focusing on freelancing, export-oriented industries, and regional disparities. Although English proficiency increases employability and earning potential, serious problems persist due to regional disparities, skill gaps, and lack of primary data on economic outcomes for English-proficient individuals in Bangladesh. This analysis underlines the transformative potential that could be achieved through targeted investment in English education and digital literacy, complemented by policy reforms for inclusive growth, reduced inequalities, and a globally competitive Bangladesh. Some policy recommendations include scaling up education initiatives, reinforcing institutional support, and leveraging technology to realize the maximum economic benefits accruable from proficiency in English. 1. Introduction The English language is central to economic growth and globalization by opening pathways to higher-paying jobs, international markets, and knowledge-sharing opportunities. The need for proficiency in English has gained importance in Bangladesh, where the pace of economic globalization is fast and is integrating the country into global networks at an incredible speed. This study investigates how English proficiency affects labor market outcomes in Bangladesh and compares these impacts to similar economies. Drawing on evidence from other countries, it provides actionable recommendations for policymakers to enhance English education as a driver of economic progress. The importance of English is a consequence of its role as the current global lingua franca. Mastery of English is associated with superior economic opportunities in international trade, education, and professional services. International evidence from South Africa, India, China, and Turkey shows a strong correlation between English skills and higher wages or employment probabilities. (Casale and Posel, 2011 & Azam et al., 2010). This paper extends such findings by placing them in Bangladesh's unique cultural and economic context. It also examines English as a catalyst for socio-economic equity, the empowerment of rural labor, and employment opportunities in new industries such as digital freelancing. By fostering adaptability to global economic changes, proficiency in English can be at the heart of resilience and inclusivity in Bangladesh's economic transformation. 2. Literature Review 2.1 Overview of Economic Benefits of English Proficiency A range of studies has identified the economic benefits of English language proficiency in developing economies. For example, fluent English speakers in India receive a 34% wage premium over non-speakers, while partial proficiency brings about a 13% premium (Azam et al., 2010). In addition, in South Africa, proficiency in English raises employment probability by 23 to 25% and increases wages by 33%. (Kahn et al., 2019). These findings point out that English is a powerful instrument for upward mobility. In Bangladesh, where industries such as IT and services are growing, these trends may also manifest, especially as English unlocks the door to several sectors dependent on international cooperation. The positive impacts of English language skills further trickle down to enhance community livelihoods, raise national productivity, and enhance access to international markets-especially for export-oriented industries like garments and outsourcing. 2.2 Regional and Sectoral Differences The economic returns to English proficiency are usually different concerning regional and sectoral contexts. For instance, in China, during high foreign investment in the coastal region, there is a wage premium for proficiency in English as high as 16.99%, as compared to the inland areas (Wang et al., 2017). English proficiency in Turkey is specifically rewarding in technology and finance sectors that require international exposure (Di Paolo & Tansel, 2013). For Bangladesh, the evidence suggests that urban areas like Dhaka and Chittagong are more likely to benefit from English skills due to the presence of multinational corporations and export-oriented industries. However, rural regions' lack of access to English education exacerbates inequality. Bridging this gap requires implementing targeted interventions that provide resources for English training in underserved areas. Such efforts can widen economic opportunities, balance the workforce, and alleviate migration pressures from rural to urban centers. 2.3 The Role of Education Higher education and English proficiency are highly intertwined, with higher education often increasing the economic returns to language skills. In South Africa, for example, combining English proficiency and post-secondary education raises wages by up to 90% (Casale & Posel, 2011). This would suggest that incorporating English training in higher education curricula could produce similar results in Bangladesh, where educational systems are gradually improving. Early interventions, such as bilingual education at the primary level, can lay the groundwork for long-term benefits. Additionally, teacher training programs focused on English instruction and technology integration in classrooms can enhance access and quality. With these measures, the education system will evolve into a dynamic framework enabling students with market-relevant language skills, engendering individual and collective prosperity. Additionally, expanding digital platforms for English education can help reach accessibility challenges by enabling affordable and extensive access. 2.4 Insights from Other Countries International case studies are an essential learning for Bangladesh. In Mexico, specialized English instruction programs have significantly improved labor market outcomes in export-driven sectors (Galvez-Soriano, 2023). Despite the rising demand for Mandarin in Hong Kong, English continues to command significant wage premiums in sectors requiring international communication (Zhou et al., 2020). These examples show how strategic investments in English education can pay off economically. Drawing on these experiences, Bangladesh can design sustainable public-private partnerships and implement industry-specific training programs. Lessons from India and Turkey also show that national language strategies must align with global trends to enhance workforce competitiveness. By adapting these models to the socio-economic conditions of Bangladesh, policymakers can ensure sustained economic benefits through English education. 3. Methodology This study adopts a secondary qualitative research approach to investigate the economic returns of English proficiency in Bangladesh. These data were sourced from peer-reviewed articles, government reports, institutional blogs, and statistical findings from credible organizations, including the Oxford Internet Institute. Key sources include insights from countries like India, South Africa, and China, contextualized within Bangladesh's socio-economic conditions. The analysis focuses on identifying employment and wage growth patterns, reviewing government initiatives such as the Learning and Earning Development Project (LEDP) and She Power Project, and freelancing opportunities for English-proficient individuals. While the study provides a comprehensive review of existing literature and policy frameworks, it is limited by the absence of primary data and quantitative analysis, which constrains the ability to assess causal relationships. Moreover, data on English-proficient individuals in Bangladesh still needs to be explored, which makes it challenging to understand the granular labor market outcomes. Despite these limitations, this study provides valuable insight into the transformative potential of English proficiency in fostering economic growth and development and addressing labor market disparities in Bangladesh. 4. Results and Discussion 4.1 Wage Differentials English proficiency significantly enhances earning potential, especially in export-oriented sectors. In India and South Africa, English skills are critical differentiators in negotiating higher wages. English proficiency could play a similar role in Bangladesh, where industries like IT and garment manufacturing dominate the export landscape. Individuals proficient in English and working in the informal labor market as freelancers often compete in the global virtual labor market, where they tend to receive higher wages because they are paid in dollars. The study also finds that wage premiums vary across industries, with technology and finance offering the highest returns. Moreover, increasing access to English education could unlock economic benefits across a broader spectrum of industries, enabling wage growth for lower-income workers and reducing economic inequality. 4.2 Employment Opportunities Bangladesh has rapidly emerged as one of the significant contributors to the global freelancing market, with a considerable amount of youth engaging in different freelance sectors. According to the Oxford Internet Institute, Bangladesh contributes almost 16% of online labor globally and is considered the second largest supplier worldwide. This growth has been enabled by government initiatives such as the Learning and Earning Development Project, launched in 2014 with a budget of BDT 3.19 billion. The project was targeted to train 57,683 people by 2021 to create 2 million jobs in the IT sector. Similarly, the She Power Project, approved in 2018, focused on integrating women into the ICT sector, training over 10,500 women, and offering financial support for necessary equipment. These initiatives have shown the government's commitment to enhancing freelancing and employment opportunities for IT services. Furthermore, with the emergence of virtual freelance platforms like Upwork and Fiverr, plenty of informal job opportunities are being created in Bangladesh, especially for those proficient in English. Such platforms open a wide avenue for freelancers to offer their services, anything from graphic design to software development to clients worldwide. This growing trend has widened employment and contributed much to remittances, with freelancers earning in foreign currencies and bringing income into the country. Policymakers can help create a strong freelancing ecosystem that supports economic diversification and individual empowerment by promoting digital literacy in addition to English education. 4.3 Regional and Sectoral Considerations Bangladesh exhibits significant regional disparities in economic opportunities linked to English proficiency. Urban centers like Dhaka benefit disproportionately from their concentration of foreign investment and export-oriented industries. Drawing on lessons from China, where regional language training programs have helped bridge inequalities, Bangladesh can implement similar initiatives to reduce rural-urban divides. Investments in rural education and infrastructure can ensure that marginalized communities gain access to the benefits of English proficiency. Additionally, empowering local governments to partner with private entities for community-based English training programs can promote inclusive growth and long-term economic stability. 4.4 Challenges and Limitations This research paper is solely a secondary qualitative study and only synthesizes findings from past studies. One of the key limitations is the lack of primary data and regression analysis, which would go a long way in extracting more detailed insights into the specific relationship between English proficiency and labor market outcomes in Bangladesh. Further, there needs to be more data available on individuals proficient in English with better employment and earning outcomes. Future research should collect primary data to quantify these impacts and investigate causal relationships. The strength of policy recommendations and understanding of how English proficiency influences economic mobility in Bangladesh would be enhanced by an expanded research focus in this area. 4.5 Policy Recommendations Bangladesh has emerged as a significant contributor to the global freelancing market, with approximately 16% of the world's online labor originating from the country (The Independent BD, 2020). This growth has been facilitated by government initiatives such as the Learning and Earning Development Project (LEDP), which aims to train thousands of individuals in IT skills to boost (The Confluence, 2024). Thus, to ensure that Bangladesh maximizes the economic benefits of English proficiency, the following strategies are recommended: 1. Enhance Skill Development Programs: Expand Training Initiatives: Increase the reach of programs like LEDP to cover more regions, ensuring that a more significant segment of the population gains access to essential freelancing skills. Focus on Advanced Skills: Encourage freelancers to specialize in high-demand areas to command better wages and reduce competition in oversaturated markets. Digital Mahbub Introduce Early Language Education: Begin English instruction at the primary level to build foundational skills early. 2. Improve Earnings and Wage Structures: Standardize Payment Rates: Develop guidelines to help freelancers set competitive yet fair service pricing, aiming to elevate average earnings above the current rates, often below $10 per hour. Prothom Alo Facilitate Access to Global Payment Platforms: Work towards integrating widely used payment systems like PayPal to streamline transactions and build trust with international clients. 3. Strengthen Institutional Support: Provide Official Recognition: Continue issuing Freelancer ID cards to legitimize freelancing as a profession, thereby facilitating access to financial services and government benefits. The Confluence Collaborate with Industry: Partner with export-driven sectors to create tailored English training programs. Promote Public-Private Partnerships: Foster collaborations among government, private enterprises, and educational institutions to scale language programs. 4. Promote Digital Literacy and Infrastructure: Enhance Digital Literacy: Integrate technology-focused English courses to prepare the workforce for virtual freelancing and global remote work opportunities. Enhance Internet Accessibility: Invest in high-speed internet infrastructure, especially in rural areas, to enable more individuals to participate in the freelancing economy. 5. Ensure Fair Labor Practices: Protect Against Exploitation: Develop regulations to safeguard freelancers from unfair practices and ensure timely payments. Encourage Ethical Recruitment: Monitor and regulate training institutions to prevent the dissemination of unrealistic expectations about freelancing, thereby maintaining the sector's integrity. The Daily Star By implementing these policies, Bangladesh can enhance the economic returns of its labor market, ensuring that freelancers receive fair compensation and contribute more effectively to the national economy. 5. Conclusion In Bangladesh, developing English proficiency offers a crucial avenue for enhancing economic growth, labor market outcomes, and international competitiveness. This paper discusses that English skills significantly influence employment probabilities, wage premiums, and access to international freelancing opportunities. Challenges persist despite the evident benefits: regional disparities, skill gaps, and limited data availability on English-proficient individuals. The government has been highly supportive through projects like the Learning and Earning Development Project and the She Power Project to ensure that all people become digitally literate and that marginalized groups, specifically women, join the freelance economy. In the absence of primary data and without conducting any quantitative analysis of direct impacts regarding proficiency in English, further research in this area is required. Such economic dividends will likely be maximized if Bangladesh adopts focused policies that promote access to English education, utilize digital technologies, and encourage public-private partnerships. The country should seize significant opportunities for its youth by bridging urban-rural divides and matching training programs with the demand for labor in the global market. Besides, enhancing institutional support and ensuring non-discriminatory labor standards for freelancers will be essential in sustaining the momentum of English proficiency-driven economic progress. As Bangladesh further integrates into the global economy, investment in English education will contribute to inclusive and sustainable national development while improving individual mobility and raising income. References Adamchik, V. A., Hyclak, T. J., Sedlak, P., & Taylor, L. W. (2019). Wage Returns to English Proficiency in Poland. Azam, M., Chin, A., & Prakash, N. (2010). The Returns to English-Language Skills in India. Casale, D., & Posel, D. (2011). English Language Proficiency and Earnings in South Africa Di Paolo, A. & Tansel, A. (2013). Returns to Foreign Language Skills in a Developing Country: The Case of Turkey. Galvez-Soriano, O. (2023). Effects of English Instruction and English Skills on Labor Market Outcomes in Mexico. Guo, Q., & Sun, W. (2014). Economic Returns to English Proficiency for College Graduates in Mainland China. Kahn, A., Branson, N., & Leibbrandt, M. (2019). Returns to English Skills in the South African Labour Market. Ufier, A. (n.d.). The Impact of English Language Skills on National Income: A Cross-National Comparison. Wang, H., Smyth, R., & Cheng, Z. (2017). The Economic Returns to Proficiency in English in China. Zhou, Y., Zhu, R., & Zheng, X. (2020). Second Language Skills and Labor Market Outcomes: Evidence from Hong Kong. The Confluence Blog. (2024). Freelancing in Bangladesh: Initiatives and Challenges. https://theconfluence.blog/freelancing-in-bangladesh-initiatives-and-challenges/ Digital Mahbub. (2024). Bangladesh Advances in Freelancing. https://digitalmahbub.com/bangladesh-advances-in-freelancing/ The Daily Star. (2023). Bangladesh’s Reputation as a Freelancing Powerhouse is on the Line. https://www.thedailystar.net/opinion/views/news/bangladeshs-reputation-freelancing-powerhouse-the-line- Prothom Alo. (2021). Bangladesh Advances in Freelancing, Falls Behind in Hourly Wages. https://en.prothomalo.com/business/local/bangladesh-advances-in-freelancing-falls-behind-in-hourly-wages The Independent BD. (2020). Rise and Growth of Freelancing in the Economy of Bangladesh. Retrieved from https://theindependentbd.com/printversion/details/238823