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

  • Antoni, Manfred
  • Heineck, Guido

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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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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D-96045 Bamberg

Phone: 0951/8632687
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Web page: http://www.uni-bamberg.de/vwl/forschung/berg/

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  19. Corinna Kleinert & Britta Matthes & Manfred Antoni & Katrin Drasch & Michael Ruland & Annette Trahms, 2011. "ALWA – New Life Course Data for Germany," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 131(4), pages 625-634.
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