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Do literacy and numeracy pay off? On the relationship between basic skills and earnings

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  • Antoni, Manfred
  • Heineck, Guido

Abstract

Is there a reward for basic skills in the German labor market? To answer this question, we examine the relationship between literacy, numeracy and monthly gross earnings of full-time employed workers. We use data from the ALWA survey, augmented by test scores on basic cognitive skills as well as administrative earnings data. Our results indicate that earnings are positively related to both types of skills. There furthermore is no evidence for non-linearity in this relationship and only little heterogeneity when differentiating by sub-groups. --

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Bibliographic Info

Paper provided by Bamberg University, Bamberg Economic Research Group in its series BERG Working Paper Series with number 86.

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Date of creation: 2012
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Handle: RePEc:zbw:bamber:86

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Postal: D-96045 Bamberg
Phone: 0951/8632687
Fax: 0951/8632550
Web page: http://www.uni-bamberg.de/vwl/forschung/berg/
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Keywords: literacy; numeracy; earnings; administrative data; Germany; ALWA;

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Cited by:
  1. Seregi, János & Lelovics, Zsuzsanna & Balogh, László, 2012. "The social welfare function of forests in the light of the theory of public goods," BERG Working Paper Series, Bamberg University, Bamberg Economic Research Group 87, Bamberg University, Bamberg Economic Research Group.

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