Literacy Skills, Occupational Assignment and the Returns to Over- and Under-Education (2002)

This study uses data from the Canadian panel of the International Adult Literacy Survey to examine the relations between schooling, literacy and occupational assignment and to determine the extent to which returns to over- and under-education are in fact returns to literacy skills. Two measures of required training time for the job are used, both of which are based on detailed occupation. One is the General Educational Development (GED) level of the occupation; the other is the sum of the GED and Specific Vocational Preparation (SVP) times. Regression analysis of the required training time of individuals' jobs shows that literacy skills are an important determinant of occupational assignment by skill level, once schooling is taken into account. Skills acquired through on-the-job training may also play an important role in occupational assignment.

The author concludes that literacy skills play a significant role in occupational assignment, independent of the role of schooling, that the return to under-education for both women and men is in large part a return to above average literacy skills for their level of schooling, and that for men, the return to over-education is in large part a return to literacy skills which are above average for their jobs. This would seem to indicate that employers are capable of determining their employees' literacy skills by more accurate means than simply depending on the level of schooling as an indicator of literacy skills.

To obtain a copy of this report or for more information :
T. Scott Murray
Statistics Canada
Ottawa ON K1A 0T6
Tel. (613) 951-9035 or 1-800-263-1136
TDS 1-800-363-7629
Email : infostats@statcan.ca

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Authors: 
ISBN: 
0-662-86668-1
Added: 
2003-11-26
APA citation
Daniel Boothy. Literacy Skills, Occupational Assignment and the Returns to Over- and Under-Education 2002. Web. 5 Dec. 2020 <http://en.copian.ca/library/research/nls/inpub/litskill/litskill.pdf>
Daniel Boothy (2002). Literacy Skills, Occupational Assignment and the Returns to Over- and Under-Education. Retrieved December 5, 2020, from http://en.copian.ca/library/research/nls/inpub/litskill/litskill.pdf
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