The Impact of Human Capital in the American Labor Market Series - Skills and Labor Market Outcomes of Working-Age Americans

Oct 15, 2026

Uploaded by Connor

This report examines how human capital—measured through literacy and numeracy proficiencies—relates to labor market outcomes for working-age Americans. It uses cognitive and background data from the PIAAC assessment to study employed, unemployed, and out-of-the-labor-force populations. Beyond earnings, the analysis covers nonpecuniary outcomes such as employment status, employment intensity, employer-provided training, occupation, job satisfaction, and unemployment duration, showing that these outcomes are strongly connected to skills.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages97

Reading Time4 h 4 min

AccessFree to download

Preface

Introduction

About the Data

Labor Market Outcomes and Skills for the Working-Age Population

Skills and Labor Market Outcomes for the Employed Population

Skills and Labor Market Outcomes for the Unemployed Population

Skills and Labor Market Outcomes for the Out-of-the-LaborForce Population

Summary of Findings

Implications

Appendices

The Impact of Human Capital in the American Labor Market Series Skills and Labor Market Outcomes of Working-Age Americans Neeta Fogg, Paul Harrington and Ishwar Khatiwada Center for Labor Markets and Policy Drexel University Irwin Kirsch and Anita Sands, ETS Table of Contents Preface .................................................................................................1 Introduction ........................................................................................3 About the Data....................................................................................5 Labor Market Outcomes and Skills for the Working-Age Population .......................................................................................................8 Skills and Labor Market Outcomes for the Employed Population .....................................................................................................21 Skills and Labor Market Outcomes for the Unemployed Population .....................................................................................................32 Skills and Labor Market Outcomes for the Out-of-the-LaborForce Population ...............................................................................37 Summary of Findings........................................................................40 Implications .......................................................................................44 Appendices ........................................................................................50 Appendix A: Measures of Labor Market Outcomes ..............50 Appendix B: Skills and Labor Market Outcomes ofthe 16-to 24-Year-Old Population ............................................................56 Appendix C: Skills and Labor Market Outcomes ofthe 25-to 54-Year-Old Population ............................................................63 Appendix D: Skills and Labor Market Outcomes ofthe 55-to 74-Year-Old Population ............................................................68 Appendix E: Definitions ofthe Dependent and Independent Variables in the Logistic Regressions, 16-to 74-Year-Olds, PIAAC, 2012-2014-2017 .................................................................73 About the Authors ............................................................................86 Endotes...............................................................................................89 This report was written by: Neeta Fogg Paul Harrington Ishwar Khatiwada Irwin Kirsch Anita Sands The views expressed in this report are those of the authors and do not necessarily reflect the views of the officers and trustees of Educational Testing Service. Copyright © 2022 by ETS. All rights reserved. ETS and the ETS logo are registered trademarks of ETS. All other trademarks are the property of their respective owners. September 2022 ETS Center for Research on Human Capital and Education Research and Development Educational Testing Service Rosedale Road Princeton, NJ 08541-0001 Suggested citation: Neeta Fogg, Paul Harrington, Ishwar Khatiwada, and Irwin Kirsch, Anita Sands. Skills and Labor Market Outcomes of WorkingAge Americans, The Impact of Human Capital in the American Labor Market Series (Princeton, NJ: Educational Testing Service, 2022) . Preface In 2008, in their widely acclaimed book, The Race Between Education and Technology, Harvard researchers Claudia Goldin and Lawrence Katz described human capital as the central determinant of economic growth in the United States in the 20th century. [I] Today, human capital, defined typically as the stock of knowledge, skills, and abilities of individuals, remains a critical driving force for growth of individuals and the nation. [II] In fact, research that examines the role of skills in the American labor market, including research previously published by the ETS Center for Research on Human Capital Education, revea

FAQs

What data source is used to analyze workers’ skills and labor market outcomes?

The report uses cognitive and background data collected through the Programme for the International Assessment of Adult Skills (PIAAC).

How does the report measure human capital and skills?

It defines and measures skills using literacy and numeracy proficiencies of workers.

Does the analysis cover only earnings, or also nonpecuniary outcomes?

The report focuses on nonpecuniary labor market outcomes as well, including employment, unemployment duration, and being out of the labor force, along with related employment and satisfaction measures.

Oct 15, 2026

Uploaded by Connor