Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/67181 
Year of Publication: 
2012
Series/Report no.: 
IZA Discussion Papers No. 6882
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
Is there a reward for basic skills in the German labor market? To answer this question, we examine the relationship between literacy, numeracy and monthly gross earnings of full-time employed workers. We use data from the ALWA survey, augmented by test scores on basic cognitive skills as well as administrative earnings data. Our results indicate that earnings are positively related to both types of skills. There furthermore is no evidence for non-linearity in this relationship and only little heterogeneity when differentiating by sub-groups.
Subjects: 
literacy
numeracy
earnings
administrative data
Germany
ALWA
JEL: 
I21
J31
Document Type: 
Working Paper

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