Abstract:

An important factor in a country's economy is not only material or financial resources, but more importantly human capital, which consists of knowledge, skills, competencies, or simply literacy. Literacy is a key element of human capital. There are a number of studies that confirm the impact of acquired education on the economy and the link with the establishment of a person in the labour market. However, it is also often said that education alone is not enough as a person's skills and literacy play an important role. However, there is a lack of research that specifically analyses the relationship between literacy and labour market inclusion. It is particularly important to analyse whether literacy are equally important for labour market inclusion in different countries. The aim of the research is to compare the relation between literacy and establishment in the labour market in different countries. The research is based on the data of 31 countries from all over the world. The research draws on data from International Survey of Adult Skills OECD PIAAC. This led to the selection of the countries: these 31 countries participated in PIAAC Cycle 1. Respondents from 16 to 65 years old participated in PIAAC study. Three aspects of literacy were analysed: reading literacy, numeracy and problem solving in the technology rich environment. The analysis found that, despite some differences between countries, in general employed people are more literate than unemployed people; people working with an employment contract are more literate than people working without an employment contract; people working in the private sector are least literate compared to people working in the public sector and non-profit organisations; people managing other employees are more literate; and people with higher incomes also are more literate.

Keywords:

Literacy, labour market, PIAAC.