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Schooling, Literacy, Numeracy and Labour Market Success

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  • Barry R. Chiswick
  • Yew Liang Lee
  • Paul W. Miller

Abstract

The present paper uses data from the 1996 Australian Aspects of Literacy survey to examine the effects on labour market outcomes of literacy, numeracy and schooling. The survey includes a range of literacy and numeracy variables that are highly intercorrelated. A ‘general to specific’ approach identifies the most relevant literacy and numeracy variables. Including the others adds little explanatory power. Among males and females separately, approximately half of the total effect of schooling on labour force participation and on unemployment can be attributed to literacy and numeracy (the indirect effect) and approximately half to the direct effect of schooling. There is apparently no indirect effect of labour market experience through literacy and numeracy on participation or unemployment. The direct and total effects of experience are the same. Similarly, the direct and total effects of literacy and numeracy are reasonably similar to each other.

Suggested Citation

  • Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2003. "Schooling, Literacy, Numeracy and Labour Market Success," The Economic Record, The Economic Society of Australia, vol. 79(245), pages 165-181, June.
  • Handle: RePEc:bla:ecorec:v:79:y:2003:i:245:p:165-181
    DOI: 10.1111/1475-4932.t01-1-00096
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    References listed on IDEAS

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    Cited by:

    1. Dohmen, Thomas & van Landeghem, Bert, 2019. "Numeracy and Unemployment Duration," IZA Discussion Papers 12531, Institute of Labor Economics (IZA).
    2. Aline Branche-Seigeot, 2013. "La valorisation des compétences de base sur le marché du travail français," Post-Print halshs-00794385, HAL.
    3. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
    4. Miller, Paul W. & Mulvey, Charles & Martin, Nick, 2004. "A test of the sorting model of education in Australia," Economics of Education Review, Elsevier, vol. 23(5), pages 473-482, October.
    5. A'Hearn, Brian & Baten, Jörg & Crayen, Dorothee, 2009. "Quantifying Quantitative Literacy: Age Heaping and the History of Human Capital," The Journal of Economic History, Cambridge University Press, vol. 69(3), pages 783-808, September.
    6. Brecht Neyt & Eddy Omey & Dieter Verhaest & Stijn Baert, 2019. "Does Student Work Really Affect Educational Outcomes? A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 33(3), pages 896-921, July.
    7. Niels-Hugo Blunch & Claus C. Pörtner, 2011. "Literacy, Skills, and Welfare: Effects of Participation in Adult Literacy Programs," Economic Development and Cultural Change, University of Chicago Press, vol. 60(1), pages 17-66.
    8. Alam, Khorshed & Mamun, Shamsul Arifeen Khan, 2016. "The relationship between labour force status and educational attainment: Evidence from a system of simultaneous equations model," Economic Analysis and Policy, Elsevier, vol. 52(C), pages 55-65.
    9. Patrick Laplagne & Maurice Glover & Anthony Shomos, 2007. "Effects of Health and Education on Labour Force Participation," Staff Working Papers 0704, Productivity Commission, Government of Australia.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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