Many studies have documented that a phonics approach is an essential component in the teaching of reading for beginning readers, especially for students at risk of reading disabilities. We study whether phonics approaches, as indicated by the choice of basal readers (materials for the initial teaching of reading) in Grade 1, have long-term effects on adult education levels and labour market outcomes 23 years later. The study shows evidence of a causal link between the choice of basal reader in primary school and school results at the end of lower secondary school as well as labour market outcomes at age 30. Choosing a basal reader that is easily compatible with a phonics approach is a highly cost-effective policy choice.