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Citation Information

Type Conference Paper - Brazilian Meeting of Econometrics
Title The effects of adult literacy on earnings and employment
Author(s)
Publication (Day/Month/Year) 2008
URL http://virtualbib.fgv.br/ocs/index.php/sbe/EBE08/paper/viewPDFInterstitial/407/55
Abstract
This paper provides evidence of the effects of adult literacy on individuals’ income and employability in Brazil. We explore the panel data structure of the monthly employment survey (PME) to control for unobservable fixed characteristics of the individuals. In general, the results of this paper indicate a 10 percent return in additional income for individuals who become literate. We also provide evidence suggesting that the effects on wage are due to productivity gains rather than increased formalization of literate worker employment. We further find that the effect on income is more prevalent in certain groups of individuals: women, residents of Southern/Southeastern Brazil, and individuals between the ages of 45 and 60.

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