Links between literacy and numeracy skills and labour market outcomes

Research Project

Background

Demographic change is expected to affect economic growth and government budgets. Improving labour market outcomes (that is, participation and productivity) will be important in meeting the challenges of an ageing population. Improvements in human capital are likely to be significant drivers of improved labour market outcomes. There is considerable literature on the role of human capital in general, but little is known about the effects of specific factors (such as literacy and numeracy, 'soft' and technical skills). Researchers are beginning to look more closely at these issues, particularly the role of literacy and numeracy skills in determining labour market outcomes. While there are some international papers on this topic, the research for Australia is limited.

Objectives of the Study

The objective of this project is to inform the policy debate on the links between literacy and numeracy skills and labour market outcomes, including participation, employment, hours worked and productivity.