Bijlsma Ineke

Policy measures to combat low literacy are often targeted at municipalities or regions with low levels of literacy. However, current surveys on literacy do not contain enough observations at this level to allow for reliable estimates when using only direct estimation techniques. To provide more reliable results at a detailed regional level, alternative methods must be used. The aim of this article is to obtain literacy estimates at the municipality level using model-based small area estimation techniques in a hierarchical Bayesian framework. To do so, we link Dutch Labour Force Survey data to the most recent literacy survey available, that of the Programme for the International Assessment of Adult Competencies (PIAAC). We estimate the average literacy score, as well as the percentage of people with a low literacy level. Variance estimators for our small area predictions explicitly account for the imputation uncertainty in the PIAAC estimates. The proposed estimation method improves the precision of the area estimates, making it possible to break down the national figures by municipality.

Workers with a college degree earn substantially more than workers with no such degree. Using recent data from 22 OECD (Organization for Economic Cooperation and Development) countries, we estimate this college wage premium at 28 per cent for male full-time working employees, on average, ranging from 18 per cent in Sweden to 50 per cent in the Slovak Republic. This premium is largely explained by the higher skill levels of graduates from higher education combined with their use of these skills at work, as well as the match with job requirements for this skill proficiency and skill use. We find no effect of labour market institutions (e.g. the employment protection legislation or the coverage rate) on cross-country differences in the college wage premium. However, we find that cross-country variation in this premium is related to the relative supply of higher educated workers. Moreover, we find evidence that cross-country differences in the college wage premium are related to the degree to which educational credentials signal skills.

Boom Lemma tijdschriften is een online tijdschriftenplatform van Boom uitgevers Den Haag (Boom Juridische uitgevers, Boom Lemma uitgevers en Eleven International publishing)