Schooling, Literacy and Individual Earnings
Direct measures of skill attainment, such as the International Adult Lite racy Survey, have been justified as a way to assess the relative importance of specific skills in determining labout market oucomes, but such scores are the product of complex statistical procedures, and alternative monotonic transformations may be equally plausible. This paper addresses the problem of statistical inference with ordinal variates and examines the robustness to alternative literacy measurement and scaling choices of rankings of average literacy and of estimates of the impact of literacy on individual earnings.
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