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Functional literacy, educational attainment and earnings - evidence from the international adult literacy survey

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Author Info
Kevin Denny (Institute for Fiscal Studies and University College Dublin)
Colm Harmon
Sandra Redmond

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Abstract

In this paper a rich and innovative dataset, the International Adult Literacy Survey, is used to examine the impact of functional literacy on earnings. The IALS surveys 12 OECD countries and sub-regions via a consistent questionnaire and includes a number of tests of numeracy and literacy, as well as basic labour market information. This paper examines the effect of these skills on labour market earnings for the Republic of Ireland, Northern Ireland, and for Great Britain. The estimates suggest that while ability has a role in determining earnings the dominant factor remains formal education. It is shown that, particularly for Great Britain, there is a positive interaction between the test score and education in determining earnings.

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Publisher Info
Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W00/09.

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Length: 21 pp
Date of creation: Apr 2000
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Handle: RePEc:ifs:ifsewp:00/09

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. William W. Gould & Jeffrey Pitblado & William Sribney, 2006. "Maximum Likelihood Estimation with Stata," Stata Press books, StataCorp LP, edition 3, number ml3, November-. [Downloadable!]
  2. Colm Harmon & Ian Walker, 1997. "The Marginal and Average Returns to Schooling," Keele Department of Economics Discussion Papers (1995-2001) 97/07, Department of Economics, Keele University.
    Other versions:
  3. repec:fth:prinin:411 is not listed on IDEAS
  4. Redmond, S., 1999. "Wages and Human Capital: Evidence from the Irish Data," Papers 99/3, College Dublin, Department of Political Economy-.
  5. Charette, Michael & Meng, Ronald, 1994. "Explaining language proficiency : Objective versus self-assessed measures of literacy," Economics Letters, Elsevier, vol. 44(3), pages 313-321. [Downloadable!] (restricted)
  6. Amanda Gosling & Stephen Machin & Costas Meghir, 1994. "The changing distribution of male wages in the UK," IFS Working Papers W94/13, Institute for Fiscal Studies.
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  7. Alan Krueger & Mikael Lindahl, 1998. "Education for Growth in Sweden and the World," Working Papers 790, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  8. Stewart, Mark B, 1983. "On Least Squares Estimation When the Dependent Variable Is Grouped," Review of Economic Studies, Blackwell Publishing, vol. 50(4), pages 737-53, October. [Downloadable!] (restricted)
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  9. Denny, Kevin J & Harmon, Colm P, 2001. "Testing for Sheepskin Effects in Earnings Equations: Evidence for Five Countries," Applied Economics Letters, Taylor and Francis Journals, vol. 8(9), pages 635-37, September. [Downloadable!] (restricted)
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  10. Boissiere, M & Knight, J B & Sabot, R H, 1985. "Earnings, Schooling, Ability, and Cognitive Skills," American Economic Review, American Economic Association, vol. 75(5), pages 1016-30, December. [Downloadable!] (restricted)
  11. John Cawley & Karen Conneely & James Heckman & Edward Vytlacil, 1996. "Cognitive Ability, Wages, and Meritocracy," NBER Working Papers 5645, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kevin J Denny & Colm P Harmon, 2000. "Education Policy Reform and the Return to Schooling from Instrumental Variables," Working Papers 200012, School Of Economics, University College Dublin. [Downloadable!]
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