ABSTRACT
When attempting to explain labour market outcomes in Australia, economists have generally based their analyses on the human capital model. According to Schultz (1962) and Becker (1964), human capital includes schooling, on-the-job training, medical care, migration and the acquisition of information. The search for better explanations of labour market outcomes has seen this list expanded to include language capital (Chiswick & Miller 1995) and other types of knowledge, such as computer skills (Miller & Mulvey 1997). Recent research by the member countries of Organisation for Economic Co-operation and Development (OECD) (1997) has developed this theme further by focusing on literacy and numeracy skills. It argues that the role of literacy and numeracy skills in the economy is not fully appreciated.
