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What is the economic value of literacy and numeracy?

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  • Anna Vignoles

    (University of Cambridge, UK, and IZA, Germany)

Abstract

Even in OECD countries, where an increasing proportion of the workforce has a university degree, the value of basic skills in literacy and numeracy remains high. Indeed, in some countries the return for such skills, in the form of higher wages, is sufficiently large to suggest that they are in high demand and that there is a relative scarcity. Policymakers need robust evidence in order to devise interventions that genuinely improve basic skills, not just of new school leavers entering the market, but also of the existing workforce. This would lead to significant improvements in the population that achieves a minimum level of literacy and numeracy.

Suggested Citation

  • Anna Vignoles, 2016. "What is the economic value of literacy and numeracy?," IZA World of Labor, Institute of Labor Economics (IZA), pages 229-229, January.
    • Handle: RePEc:iza:izawol:journl:y:2016:n:229
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    References listed on IDEAS

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    1. McIntosh, Steven & Vignoles, Anna, 2001. "Measuring and Assessing the Impact of Basic Skills on Labour Market Outcomes," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 453-481, July.
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    4. Eric A. Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 607-668, September.
    5. Augustin de Coulon & Elena Meschi & Anna Vignoles, 2011. "Parents' skills and children's cognitive and non-cognitive outcomes," Education Economics, Taylor & Francis Journals, vol. 19(5), pages 451-474, July.
    6. Anna Vignoles & Augustin De Coulon & Oscar Marcenaro-Gutierrez, 2011. "The value of basic skills in the British labour market," Oxford Economic Papers, Oxford University Press, vol. 63(1), pages 27-48, January.
    7. Richard J. Murnane & John B. Willett & Yves Duhaldeborde & John H. Tyler, 2000. "How important are the cognitive skills of teenagers in predicting subsequent earnings?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(4), pages 547-568.
    8. Colm Harmon & Kevin Denny & Vincent O'Sullivan, 2003. "Education, earnings and skills : a multi-country comparison," Open Access publications 10197/649, School of Economics, University College Dublin.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Sasso, Simone & Ritzen, Jo, 2016. "Sectoral Cognitive Skills, R&D, and Productivity: A Cross-Country Cross-Sector Analysis," IZA Discussion Papers 10457, Institute of Labor Economics (IZA).
    2. Mahdi Gholami & Samuel Muehlemann, 2024. "Mastering Math: A Gateway to Better Firms and Higher Earnings," Economics of Education Working Paper Series 0212, University of Zurich, Department of Business Administration (IBW), revised May 2024.
    3. Philippe Aghion & Terra Allas & Timothy Besley & John Browne & Francesco Caselli & Richard Davies & Richard Lambert & Rachel Lomax & Stephen Machin & Gianmarco I. P. Ottaviano & Christopher A. Pissari, 2017. "UK growth: a new chapter," CEP Reports 28b, Centre for Economic Performance, LSE.
    4. Martina Bisello & Marta Fana & Enrique Fernández-Macías & Sergio Torrejón Pérez, 2021. "A comprehensive European database of tasks indices for socio-economic research," JRC Working Papers on Labour, Education and Technology 2021-04, Joint Research Centre.
    5. Kabir Dasgupta & Alexander Plum, 2022. "Skills, Economic Crises and the Labour Market," Working Papers 2022-01, Auckland University of Technology, Department of Economics.
    6. Machin, Stephen & McNally, Sandra & Viarengo, Martina, 2016. ""Teaching to Teach" Literacy," IZA Discussion Papers 9955, Institute of Labor Economics (IZA).
    7. Johnson, Helen & McNally, Sandra & Rolfe, Heather & Ruiz-Valenzuela, Jenifer & Savage, Robert & Vousden, Janet & Wood, Clare, 2019. "Reprint of: Teaching assistants, computers and classroom management," Labour Economics, Elsevier, vol. 59(C), pages 17-32.
    8. Muzekenyi Mike & Nyika Farai & Anyikwa Izunna & Kemda Lionel Establet, 2023. "Re-Examining the Impact of Public Education Expenditure on South African Literacy," Economics and Business, Sciendo, vol. 37(1), pages 90-103, January.

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    More about this item

    Keywords

    basic skills; literacy; numeracy; wages; education policy;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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