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Basic Skills
Much has been made of the fact that workers at the lower end of the skill distribution are severely lacking in basic skills in some countries. This is particularly true of the countries that have experienced rapidly rising labour market inequalities in recent years (notably the UK and US). This contrasts sharply with countries like Germany and the Netherlands where wage inequality has not risen and where people are better educated to basic levels, particularly in literacy and numeracy. Some researchers have thus looked at the links between basic skills and labour market performance of individuals in Britain, with significant earnings and employment penalties being observed for people with poor literacy and numeracy levels. Other related work establishes links between childhood behavioural variables and adult labour market and educational outcomes using rich data on British birth cohorts.
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