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The Importance of Literacy for Employment and Unemployment Duration

Author

Listed:
  • Arendt, Jacob Nielsen

    (Institute of Public Health – Health Economics, University of Southern Denmark)

  • Rosholm, Michael

    (Department of Economics, Aarhus School of Business, University of Aarhus)

  • Jensen, Torben Pilegaard

    (Institute of Local Government Studies)

Abstract

This study is the first to examine the impact of literacy on unemployment and employment duration. Compared to previous models that use static labour market status, this study reveals important insights into in- and outflows. Unique register-based spell data and survey data are used and search theoretic explanations for the expected impact of literacy are considered. Models with heterogeneous effects of literacy are estimated for transitions from employment to unemployment and vice versa. The results show that literacy is as important as formal education and labour market experience for transi tions from employment in particular. In keeping with expectations, literacy is as - sociated with longer employment durations, differing though across gender, cohabiting status and industries. Although literacy shows no overall impact on unemployment dura tion, this masks a negative impact for the high-skilled in particular.

Suggested Citation

  • Arendt, Jacob Nielsen & Rosholm, Michael & Jensen, Torben Pilegaard, 2008. "The Importance of Literacy for Employment and Unemployment Duration," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2008(1), pages 22-46.
  • Handle: RePEc:hhs:jdaecn:0100
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    More about this item

    Keywords

    literacy; unemployment; employment;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General

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