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Adult literacy, heterogeneity and returns to schooling in Chile

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  • Harry Anthony Patrinos
  • Chris Sakellariou

Abstract

We examine the importance of adult functional literacy skills for individuals using a quantile regression methodology. The inclusion of the direct measure of basic skills reduces the return to schooling by 27%, equivalent to two additional years of schooling, while a one standard deviation increase in the score increases earnings by 20%. For those who are less skilled, more education contributes little to earnings; rather skills are the key to higher earnings. The nonschooling component of skill is a significant contributor to earnings, but not the component associated with years of schooling.

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  • Harry Anthony Patrinos & Chris Sakellariou, 2015. "Adult literacy, heterogeneity and returns to schooling in Chile," Education Economics, Taylor & Francis Journals, vol. 23(1), pages 122-136, February.
    • Handle: RePEc:taf:edecon:v:23:y:2015:i:1:p:122-136
    DOI: 10.1080/09645292.2013.824951
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