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Literacy and numeracy skills and life-course outcomes: Evidence from PIAAC and linked administrative data

Author

Listed:
  • Lisa Meehan

    (Auckland University of Technology)

  • Gail Pacheco

    (Auckland University of Technology)

  • Thomas Schober

    (Auckland University of Technology)

Abstract

This paper examines the life-course trajectories of NZ adults across different literacy and numeracy skill levels. This is done by using skill information for the working-age adult population (aged 16-65 years) collected in the Survey of Adult Skills (PIAAC). This sample is then linked with administrative data to track their life-course outcomes from 2008 to 2020. The outcomes of the one-fifth of NZ working-age adults who were assessed at below Level 2 in either literacy or numeracy (or both) are compared with those at or above this baseline. It finds that adults with low measured skills have less favourable outcomes in a number of areas. They have lower rates of educational attainment, lower employment rates and average earnings, higher rates of hospitalisation, and higher rates of criminal offending and convictions. In addition, outcomes for M?ori and Pacific peoples in both the low-skills and above-baseline groups are generally less favourable than those of their NZ European counterparts. For example, even among those with above-baseline skills, M?ori and Pacific peoples have lower average earnings than NZ Europeans. These results provide a quantifiable evidence base regarding the role of literacy and numeracy skills with respect to a range of wellbeing outcomes over the course of an individual’s life.

Suggested Citation

  • Lisa Meehan & Gail Pacheco & Thomas Schober, 2024. "Literacy and numeracy skills and life-course outcomes: Evidence from PIAAC and linked administrative data," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 27(1), pages 27-72.
    • Handle: RePEc:ozl:journl:v:27:y:2024:i:1:p:27-72
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    References listed on IDEAS

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    1. Richard Desjardins & Arne Jonas Warnke, 2012. "Ageing and Skills: A Review and Analysis of Skill Gain and Skill Loss Over the Lifespan and Over Time," OECD Education Working Papers 72, OECD Publishing.
    2. Francesca Borgonovi & Álvaro Choi & Marco Paccagnella, 2018. "The evolution of gender gaps in numeracy and literacy between childhood and adulthood," OECD Education Working Papers 184, OECD Publishing.
    3. Cain Polidano & Chris Ryan, 2017. "What Happens to Students with Low Reading Proficiency at 15? Evidence from Australia," The Economic Record, The Economic Society of Australia, vol. 93(303), pages 600-614, December.
    4. Emma Gorman & Grant M Scobie & Andy Towers, 2012. "Health and Retirement of Older New Zealanders," Treasury Working Paper Series 12/02, New Zealand Treasury.
    5. Per-Anders Edin & Magnus Gustavsson, 2008. "Time Out of Work and Skill Depreciation," ILR Review, Cornell University, ILR School, vol. 61(2), pages 163-180, January.
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    Keywords

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    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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