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

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