We evaluate the labour market value of literacy and numeracy in the UK, focusing on
both wage and employment returns to these basic skills. We draw on literacy and
numeracy tests undertaken by all cohort members of the UK 1970 British Cohort Study.
The data used are rich and allow us to account for potential ability bias, including as they
do early childhood assessments of ability. We find literacy and numeracy effects on
earnings, over and above any general effect on earnings from a person being more
cognitively able. We also assess whether the wage return to skills has increased over
time, using a cross cohort analysis. Results show that literacy and numeracy skills
retained their high value in the UK labour market over the period 1995-2004, despite
numerous policy attempts to increase the supply of these skills during this period.
Presented by:
Anna Vignoles (CEE [LSE] and Institute of Education)
Date & time:
December 3, 2007 4:00 pm - December 3, 2007 12:00 am
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