This paper looks at the employment and income benefits of literacy skills and qualifications. It draws on data from the Adult Literacy and Life Skills (ALL) survey. The results of the analysis show that the benefit of increased literacy without higher qualifications is limited in the New Zealand labour market. The major benefit comes from improved literacy in combination with gaining a qualification, which can result in greater opportunities to move into higher paid jobs.
Analysing the labour market outcomes of educational qualifications and skills enables us to understand how the education system benefits people and the economy. The Adult Literacy and Life Skills (ALL) survey provides a unique opportunity to look at the combined effects of literacy and qualifications on employment and hourly wages.