Wage inequality, skill inequality, and employment: evidence and policy lessons from PIAAC

IZA Journal of European Labor Studies

Table 6 Regression of log wages on numeracy test scores and years of schooling, employed persons

Model	Model 1		Model 2		Model 3
Country	Scores	R ²	Schooling	R ²	Scores	Schooling	R ²
Denmark	0.22 (0.01)	0.34	0.06 (0.00)	0.44	0.09 (0.01)	0.06 (0.00)	0.45
Finland	0.24 (0.01)	0.25	0.06 (0.00)	0.38	0.11 (0.01)	0.06 (0.00)	0.40
France	0.30 (0.01)	0.23	0.06 (0.00)	0.32	0.14 (0.01)	0.05 (0.00)	0.34
Germany	0.39 (0.02)	0.28	0.10 (0.00)	0.37	0.18 (0.02)	0.09 (0.00)	0.39
Ireland	0.34 (0.02)	0.23	0.08 (0.00)	0.29	0.20 (0.02)	0.07 (0.00)	0.32
Italy	0.22 (0.02)	0.14	0.06 (0.00)	0.26	0.08 (0.02)	0.05 (0.00)	0.27
Japan	0.34 (0.02)	0.29	0.07 (0.01)	0.31	0.22 (0.02)	0.06 (0.01)	0.33
Netherlands	0.30 (0.02)	0.34	0.09 (0.00)	0.47	0.13 (0.02)	0.08 (0.00)	0.48
Flanders (Belgium)	0.28 (0.01)	0.25	0.07 (0.00)	0.34	0.14 (0.01)	0.06 (0.00)	0.36
Norway	0.21 (0.01)	0.31	0.06 (0.00)	0.39	0.11 (0.01)	0.05 (0.00)	0.41
Spain	0.35 (0.03)	0.18	0.08 (0.00)	0.33	0.15 (0.03)	0.07 (0.00)	0.34
England/N. Ireland	0.40 (0.02)	0.29	0.09 (0.00)	0.29	0.30 (0.02)	0.07 (0.00)	0.36
USA	0.48 (0.02)	0.28	0.11 (0.00)	0.39	0.22 (0.02)	0.09 (0.00)	0.42
Pooled	0.30 (0.01)	0.25	0.07 (0.00)	0.34	0.15 (0.01)	0.07 (0.00)	0.36

Source: calculations based on PIAAC
Note: Controls: experience, experience², gender, and immigration status. Tables are available upon request. For the purpose of easier interpretation, numeracy test scores are divided by 100