Literacy, Numeracy and Labour Market Outcomes in Canada
AbstractMost research on the contribution of human capital to economic growth and its role in the distribution of income uses indirect measures of human capital such as educational attainment and work experience. Such measures are arguably inputs into the production of human capital in the form of skills, competencies and knowledge. This study uses Canadian data from the international Adult Literacy Survey to analyse the role of directly observed skills -- specifically, prose, document and quantitative literacy -- on individual labour market earnings. The contributions of unobserved skills are taken into account using input measures (education and experience). We find that literacy skills have a large and statistically significant causal effect on earnings. As much as one-third of the return to education may be due to the combined effects of education on literacy and of literacy skills on earnings. In contrast, very little of the return to labour market experience is associated with the combined effects of experience on literacy and literacy skills on earnings.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by McMaster University in its series Canadian International Labour Network Working Papers with number 47.
Length: 52 pages
Date of creation:
Date of revision:
Contact details of provider:
Postal: 1280 Main Street West, Hamilton, Ontario, L8S 4M4
Phone: (905) 525-9140 ext. 22765
Fax: (905) 521-8232
Web page: http://www.mcmaster.ca/economics/
More information through EDIRC
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.:
- Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
- David E. Bloom & Gilles Grenier & Morley Gunderson, 1994.
"The Changing Labor Market Position of Canadian Immigrants,"
NBER Working Papers
4672, National Bureau of Economic Research, Inc.
- David E. Bloom & Gilles Grenier & Morley Gunderson, 1995. "The Changing Labour Market Position of Canadian Immigrants," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4b), pages 987-1005, November.
- Bloom, D. & Grenier, G. & Gunderson, M., 1993. "The Changing Labour Market Position of Canadian Immigrants," Working Papers 9305e, University of Ottawa, Department of Economics.
- Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January.
- Mary L. Grant, 1999. "Evidence of New Immigrant Assimilation in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 930-955, August.
- Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 369-405, July.
- Murnane, Richard J & Willett, John B & Levy, Frank, 1995.
"The Growing Importance of Cognitive Skills in Wage Determination,"
The Review of Economics and Statistics,
MIT Press, vol. 77(2), pages 251-66, May.
- Richard J. Murnane & John B. Willett & Frank Levy, 1995. "The Growing Importance of Cognitive Skills in Wage Determination," NBER Working Papers 5076, National Bureau of Economic Research, Inc.
- Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
- Rivera-Batiz, Francisco L., 1990. "Literacy skills and the wages of young black and white males in the U.S," Economics Letters, Elsevier, vol. 32(4), pages 377-382, April.
- 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.
- Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
- Gosta Esping-Andersen, 2008. "Childhood investments and skill formation," International Tax and Public Finance, Springer, vol. 15(1), pages 19-44, February.
- Per-Anders Edin & Magnus Gustavsson, 2008.
"Time out of Work and Skill Depreciation,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 61(2), pages 163-180, January.
- Edin, Per-Anders & Gustavsson, Magnus, 2005. "Time out of work and skill depreciation," Working Paper Series 2005:21, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Edin, Per-Anders & Gustavsson, Magnus, 2004. "Time Out of Work and Skill Depreciation," Working Paper Series 2004:14, Uppsala University, Department of Economics.
- Finnie, Ross & Meng, Ronald, 2003. "Minorities, Cognitive Skills and the Incomes of Canadians," Analytical Studies Branch Research Paper Series 2003196e, Statistics Canada, Analytical Studies Branch.
- Ross Finnie, 2002. "Minorities, Cognitive Skills and Incomes of Canadians," Canadian Public Policy, University of Toronto Press, vol. 28(2), pages 257-273, June.
- Finnie, Ross & Meng, Ronald, 2006. "The Importance of Functional Literacy: Reading and Math Skills and Labour Market Outcomes of High School Drop-outs," Analytical Studies Branch Research Paper Series 2006275e, Statistics Canada, Analytical Studies Branch.
If references are entirely missing, you can add them using this form.