When the IALS data were used to determine the impacts that literacy skills
had on earnings amongst the general population, Green and Riddell (2001)
found that literacy had a large impact on earnings, and each additional year
of education increased earnings by 8.3%. Contradicting the findings of the
above study, the authors suggested that education level—and not work
experience—had a greater impact on literacy. They suggested that work experience had little
effect on literacy. They also found that literacy skills Although Smith (1999) acknowledged that low levels of literacy
are directly related to employment and self–sufficiency (e.g., IALS found
that people with lower levels of literacy tended to be unemployed for longer
periods of time and received lower wages), literacy levels alone cannot be
targeted as the only reason these adults were unable to sustain supportive employment
without depending on social assistance. She suggested that the labour market
and its lack of permanent, full–time jobs that can provide a salary above minimum
wage (currently $6.85 in Ontario which equates to $14, 248 per year) played
a significant role. The real question is, what has more of an influence on
an adult's ability to find a job that can sustain his or her family:
the types of jobs available or literacy levels? Most often it is Supporting the above was a U.S. study that found greater earnings disparities within similar literacy skill groups than between skill groups (Devroye & Freeman, 2001). In other words, workers with the same literacy scores experienced greater wage differences when compared to workers from various score groups. Using the National Adult Literacy Survey data, Raudenbush and Kasim (1998) confirmed findings that the majority of wage disparities were found within occupations and not between them. They suggested that discrimination and occupational segregation may explain earnings differences experienced by women and ethnic minorities in the US. Clearly, there is more than one way of looking at the relationship between literacy, employment, and earnings. It is not always safe to assume that low literacy levels are the only predictor of lower wages. Compounding the relationship between low literacy and earnings are societal structures such as discrimination, job segregation, and a growing number of low-paying, non-unionized and insecure jobs—all of which had an impact on the participants in this study. |
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