Screening, Signalling and Wage Effect of English Scores in Korean Labor Market: Evidence from College Graduates

노동시장에서 영어점수의 선별·신호 및 임금효과: 대졸자를 중심으로

This study investigates the status of English scores in the Korean labor market. We provide an empirical explanation of how English scores affect labor performances in Korea. Specifically, we focus on the effects of TOEIC scores on college graduates' job opportunity and wage premium. Our empirical tests for TOEIC scores are implemented in three dimensions: (1) Screening effects (2) Signaling effects (3) Wage effects. The results are as follows. First, we find the positive correlation between TOEIC scores and job opportunities, which implies that TOEIC scores play an important role in employee selection process. Second, our tests give the same results when it comes to job seeker's use of TOEIC scores as signaling instrument. That is, high TOEIC scores have positive signaling effects in the labor market. However, there also exists disadvantage effect of low TOEIC scores, in that job applicants with TOEIC scores below certain level are even more disadvantageous than those with no TOEIC scores. Finally, wage premium of TOEIC scores are found, even when other variables (e.g. GPA) are controlled or we use the instrumental variable estimate.

본 연구는 우리나라의 청년노동시장에서 영어점수가 (1) 선별효과, (2) 신호효과 및 (3) 임금효과에 미치는 영향에 관하여 분석했다. 분석 결과는 다음과 같다. 첫째, 영어점수는 선별 신호과정에서 선별도구 및 신호기재로 이용되고 있는 것으로 나타났다. 둘째, 일정 수준 이하의 영어점수를 보유한 구직자는 선별 신호과정에서 불이익을 받는 것으로 나타났다. 마지막으로 능력편의를 통제한 도구변수법을 이용하여도 영어점수의 임금프리미엄이 존재하는 것으로 나타났다.