THE LI
TERACY
IMPE
RATIV
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TIMOTH
Y SHANAHAN
UNIVERSIT
Y OF
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OIS A
T CHIC
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WW
W.SHANAHANONLIT
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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
THE LI
TERACY
IMPE
RATIV
E
TIMOTH
Y SHANAHAN
UNIVERSIT
Y OF
ILLIN
OIS A
T CHIC
AGO
WW
W.SHANAHANONLIT
ERACY.COM