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LITERACY HAS FUNCTIONAL VALUE

Reading literacy is defined in PISA as the ability to understand, use and reflect on written texts in order to achieve one’s goals, to develop one’s knowledge and potential, and to participate effectively in society.

COMPLEXITY OF SOCIETIES

If literacy is a tool that allows one to participate in a society, then the complexity of that society will determine the nature and need for literacy

ECONOMICS OF LITERACY

The role of literacy depends upon the nature of the economic system

In third world countries, relatively low levels of increased literacy attainment can have major economic impact, but such gains would not create great wealth (e.g., water projects)

In advanced countries, marginal increases in elementary literacy would not be sufficient to move the needle (need for more advanced literacy)

UPSKILLING

The role literacy plays in an economy is not constant (because economies are not constant)

Businesses can realize big improvements in efficiency (which creates jobs, wealth) through upskilling of work

The past 40 years has seen a dramatic upskilling of jobs

TWO FACTORS

Globalization that permits work and labor to move across borders

Technologies that allow literacy to be used to change the nature of work (allowing greater complexity of processes and greater efficiency)

WHAT DO THOSE CHANGES MEAN?

Low skilled work will be handled by sending it elsewhere (seeking lower paid workforce) or by bringing low skilled workers in

As skills levels of jobs increase, productivity rises

But this increases unemployment in the unskilled and low skilled

Increasingly there is competition at the high levels, too

U.S. UNEMPLOYMENT (EXAMPLE)

Traditional unemployment rates about 4%

With current downturn the unemployment is 9%

But for college educated workers it is 4% and for those without a secondary education it is 15%

The difference in lifetime earnings between these groups is more than a million dollars in lifetime wages

IRISH UNEMPLOYMENT

Big declines in unemployment as wealth increased (Irish Tiger)

But simultaneously, unemployment was rising for the lower educated workers

Since the recession started in 2008, unemployment in all groups has increased

MANY FACTORS IN ECONOMY (COMPENSATORY)Energy and energy costs

Skill levels of workers

Cost of living (wage costs)

Transportation

Natural resources

Credit availability

Debt

Tax rates

Unionization

Etc.

ORGANIZATION FOR ECONOMIC-COOPERATION AND DEVELOPMENTThe higher the level of education in a society, the higher

the participation in the workplace

The higher the education, the higher the wages

But as skills levels of jobs go up, so does unemployment for lower skilled individuals (and their wages fall)

These relations are well documented at individual and societal level in Sweden, Germany, Czech Republic, Denmark, Norway, Netherlands, Belgium (Flanders), Finland, Australia, Switzerland, United Kingdom, New Zealand, Canada, Ireland, United States, Poland, Portugal, Hungary, Slovenia, Chile

IRISH ECONOMY

Literacy is relatively strong in Ireland for those who complete upper secondary education, but a big fall off for those who do not

Education is the major source of literacy gains

Best opportunity for economic growth is in exports, which depends on “new economy” (e.g., pharmaceuticals) rather than “traditional economy” (e.g., construction)

BEYOND ECONOMICS

Social Meaning of Literacy:

Migration

Civics

Health Care

Literary Heritage

Social Participation

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