Link Between Adult Literacy and Participation in the Labour Market: Central European Region

Abstract

Human capital, together with financial and material resources, is an important factor in the economy of society. Human capital can be defined in different ways, but knowledge, abilities, skills, competences, or literacy, in general, are essential parts. It can be said that literacy is the cornerstone of human capital. According to the basic principles of the theory of employment, factors such as education, gender, age, health, marital status, and emigration have a major impact on participation in the labour market. However, in scientific discourse, there is a strong emphasis on these factors and the importance of literacy. However, there is a lack of studies specifically analysing the links between literacy and participation in the labour market. In particular, it is important to analyse whether literacy is equally important for participation in the labour market in different regions and countries. This article analyses the link between participation in the labour market and literacy in the Central European region. Six Central European countries are analysed based on the International Survey of Adult Skills OECD PIAAC. An analysis of the main parameters showing how a person participates in the labour market suggests there is a link between a person's literacy and their working status, type of employment contract, managerial position, and economic sector.