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The Impact of Literacy, Numeracy and Computer Skills on Earnings and Employment Outcomes

Author

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  • Marguerita Lane

    (London Economics)

  • Gavan Conlon

    (London Economics)

Abstract

Using the 2012 PIAAC data, our analysis confirms that there are significantly higher earnings and employment returns to both increasing levels of formally recognised education, and to increasing levels of numeracy, literacy and Information and communication technologies (ICT) skills proficiencies controlling for the level of education. Unsurprisingly, the labour market returns to changes in formally recognised levels of education in general exceed the labour market returns associated with increasing levels of skills proficiency. In the case of literacy and numeracy proficiencies, improved literacy and numeracy skills narrow the labour market outcomes gap between individuals with different levels of formally recognised education, but do not close it completely. The analysis demonstrates more substantial returns to ICT skills. Furthermore, possession of higher levels of ICT skills and lower levels of formally recognised qualification are often associated with higher returns compared to individuals with higher levels of formally recognised education but lower ICT proficiency levels. In other words, ICT skills proficiencies often entirely compensate for lower formally recognised qualifications in the labour market. Sur la base des données de 2012 du PIAAC, notre analyse confirme que tant l’élévation du niveau d’éducation formellement reconnue que celle du niveau de compétences en numératie, en littératie et en TIC après contrôle du niveau d’éducation entraînent des bénéfices significativement supérieurs. Sans surprise, les bénéfices sur le marché du travail associés à une élévation du niveau d’éducation formellement reconnue sont en général supérieurs à ceux découlant de l’amélioration du niveau de compétences. Dans le cas des niveaux de compétences en littératie et en numératie, leur élévation réduit l’écart de résultats sur le marché du travail entre les individus ayant des niveaux différents d’éducation formellement reconnue, sans pour autant le combler totalement. L’analyse met au jour des bénéfices plus importants pour les compétences en TIC. En outre, un niveau plus élevé de compétences en TIC associé à un niveau inférieur d’éducation formellement reconnue entraînent souvent des bénéfices plus importants par comparaison avec un niveau plus élevé d’éducation formellement reconnue associé toutefois à un niveau inférieur de compétences en TIC. En d’autres termes, sur le marché du travail, les compétences en TIC compensent souvent totalement un niveau inférieur d’éducation formellement reconnue.

Suggested Citation

  • Marguerita Lane & Gavan Conlon, 2016. "The Impact of Literacy, Numeracy and Computer Skills on Earnings and Employment Outcomes," OECD Education Working Papers 129, OECD Publishing.
  • Handle: RePEc:oec:eduaab:129-en
    DOI: 10.1787/5jm2cv4t4gzs-en
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    Cited by:

    1. Herman Emilia & Suciu Marta-Christina, 2019. "Towards a smart, inclusive and sustainable development. Investment in human capital and innovation. An empirical analysis," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 792-803, May.
    2. Christine Mayrhuber & Matthias Firgo & Hans Pitlik & Alois Guger & Ewald Walterskirchen, 2018. "Sozialstaat und Standortqualität," WIFO Studies, WIFO, number 61006.
    3. Maarten Goos & Melanie Arntz & Ulrich Zierahn & Terry Gregory & Stephanie Carretero Gomez & Ignacio Gonzalez Vazquez & Koen Jonkers, 2019. "The Impact of Technological Innovation on the Future of Work," JRC Working Papers on Labour, Education and Technology 2019-03, Joint Research Centre.
    4. Kabir Dasgupta & Alexander Plum, 2022. "Skills, Economic Crises and the Labour Market," Working Papers 2022-01, Auckland University of Technology, Department of Economics.

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