Basic Reading and Mathematics Skills and the Labour Market Outcomes of Young People: Evidence from PISA and Linked Administrative Data

Meehan, Lisa
Pacheco, Gail
Schober, Thomas
Item type
Journal Article
Degree name
Journal Title
Journal ISSN
Volume Title

This paper uses Programme for International Student Assessment (PISA) data linked to administrative data to track the educational and labour market outcomes of young people. Students with lower skills have lower rates of participation in further education. While low-skilled men out-earn their higher-skilled counterparts when they are very young, their earnings are overtaken by those with higher skills when they are in their early 20s, and they earn around 15 per cent less by the age of 25. The differences among women are substantially larger – women with low skills earn approximately 35 per cent less than their higher-skilled counterparts by age 25.

38 Economics , 3801 Applied Economics , 3802 Econometrics , 3803 Economic Theory , 4 Quality Education , 14 Economics , 15 Commerce, Management, Tourism and Services , Economics , 3801 Applied economics , 3802 Econometrics , 3803 Economic theory
The Economic Record, ISSN: 0013-0249 (Print); 0013-0249 (Online), Wiley. doi: 10.1111/1475-4932.12755
Rights statement
© 2023 The Authors. Economic Record published by John Wiley & Sons Australia, Ltd on behalf of Economic Society of Australia. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.