TY - RPRT AU - Antoni, Manfred AU - Heineck, Guido TI - Do Literacy and Numeracy Pay Off? On the Relationship between Basic Skills and Earnings PY - 2012/Sep/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 6882 UR - https://www.iza.org/index.php/publications/dp6882 AB - Is there a reward for basic skills in the German labor market? To answer this question, we examine the relationship between literacy, numeracy and monthly gross earnings of full-time employed workers. We use data from the ALWA survey, augmented by test scores on basic cognitive skills as well as administrative earnings data. Our results indicate that earnings are positively related to both types of skills. There furthermore is no evidence for non-linearity in this relationship and only little heterogeneity when differentiating by sub-groups. KW - literacy KW - numeracy KW - earnings KW - administrative data KW - Germany KW - ALWA ER -