Functional literacy, educational attainment and earnings : a multi-country comparison

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Title: Functional literacy, educational attainment and earnings : a multi-country comparison
Authors: Denny, Kevin
Harmon, Colm
O'Sullivan, Vincent
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Date: Aug-2003
Online since: 2009-03-09T12:33:20Z
Abstract: In this paper a rich and innovative dataset, the International Adult Literacy Survey, is used to examine the impact of functional literacy on earnings. We show that the estimated return to formal education is sensitive to the inclusion of literacy: excluding it biases the return to education in many countries by significant amounts. Literacy itself has a well-determined effect on earnings in all countries though with considerable variation in the size of the effect. The benefits of literacy do not only arise from increasing low levels of literacy: increases at already high levels generate substantial increases in earnings in some countries. In general we find little interaction between schooling and literacy though for a few countries they appear to complement each other.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
University College Dublin. Institute for the Study of Social Change (Geary Institute)
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP03/19; ISSC Discussion Paper Series; 2003/12
Copyright (published version): UCD School of Economics 2003
Subject LCSH: Literacy
Wages--Effect of education on
International Adult Literacy Survey
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Language: en
Status of Item: Not peer reviewed
Appears in Collections:Geary Institute Working Papers
Geary Institute Research Collection
Economics Working Papers & Policy Papers

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