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Wage Levels, Incidence Of Low Pay

OECD Staff OECD

Date Posted:: August 23, 2021
Is Database:: Database

The relationship btw low wage levels and numeracy skills is evident as data shows a significant share of workers earning less than two-thirds of median earnings also score at Level One or below in numeracy

The relationship between low wage levels and numeracy skills is evident as data shows a significant share of workers earning less than two-thirds of median earnings also score at Level One or below in numeracy. This correlation suggests that inadequate numeracy skills may contribute to low pay, affecting economic mobility and productivity. In countries with higher incidences of low pay, a larger proportion of the workforce struggles with basic numeracy, highlighting the need for targeted educational interventions. Addressing this skills gap could potentially reduce the share of low-paid workers and enhance overall economic performance. As policymakers consider strategies to improve wage levels, focusing on numeracy education could be a key component in reducing income inequality and fostering a more skilled workforce.

“Wage Levels, Incidence Of Low Pay” OECD, Accessed August 23, 2021, https://data.oecd.org/earnwage/wage-levels.htm

“Skills Matter: Additional Results From The Survey Of Adult Skills, Table 2.9 Numeracy Proficiency Among Adults,” OECD, Accessed August 23, 2021, https://www.oecd.org/skills/piaac/publications/firstcycledocumentation/webpackagesforskillsmatter2019round3/chapter2ofskillsmatteradditionalresultsfromthesurveyofadultskills.htm

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Ed Comment:Let's see share of level one and below test score -- the definition if low scorers that we use elsewhere. That what should correspond with low-wage earners. The US has 28% level 1 and below and 28% low wage earners. Germany has 18. What does the wage include or not include?

Steve Comment:The R2 moves slightly down to 16% (from 17%) the CORREL function is now.4075OECD's Wage levels indicator is derived from there average wages measure, "...Average wages are obtained by dividing the national-accounts-basedtotal wage bill by the average number of employees in the total economy, which is then multiplied by the ratio of the average usual weekly hours per full-time employee to the average usually weekly hours for all employees. This indicator is measured in USD constant prices using 2016 base year and Purchasing Power Parities (PPPs) for private consumption of the same year...."

Steve Comment: So the OECD’sincidence of low pay“…refers to the share of workers earning less thantwo-thirds of median earnings….”The series also “…refer to full time-employees…” so as you point out the high levels of part time employment in western Europe are going to skew this number as the data isn’t capturing those workers. So our is calculated using median earnings. The overall wage series that it’s a part of uses average earnings for most of the indicators so it used average in their overall definition.

Ed Comment:The graph says median, not average. The verbiage you sent says average, not median. Which is it? My guess is that Japan is different from the west. They don’t have many low-scores and they have lots of shopkeepers and a distribution system with very low productivity. I think they don’t reform it for the sake of employment. Finland has very high scores. So unlike other countries, its low earners are probably overwhelmed by workers with hidden variables (disabilities, mental illness, sickness, alcoholics, laziness, etc.). France looks hinky from a data perspective. It might be fudging the numbers by not fully counting “temporary” workers in its wages. The US only has 28% part time workers. Europe is more like 40% (e.g., France, Germany and the UK). Germany and France, use temps to avoid costly layoffs. Not always clear how they count them.

Standardized Test Scores and Academic Performance at a Public University System

Theodore Joyce, Mina Afrouzi Khosroshahi, Sarah Truelsch, Kerstin Gentsch, et al. National Bureau of Economic Research

Date Posted:: March 25, 2026
Is Database:: Database
Is Important:: Important

SAT scores are known to be better predictors of college and post-college success in Ivy+ universities. By contrast, this study of a public urban university system with 11 colleges shows that for the 2010–2019 cohort, high school GPA strongly dominates SAT scores.

Many of the country’s most selective colleges have returned to requiring the SAT, based on evidence that the test not only predicts student success, but facilitates the identification of qualified applicants from disadvantaged backgrounds. The results from our study of a large public urban university system find the opposite: high school grades are a vastly superior predictor of student academic success than is the SAT. We undertake an exercise with binned scatter plots of six year graduation rates against HSGPA [High School Grade Point Average] stratified by URM [under-represented minority] and whether the student received the maximum Pell grant (Figures 1a and 1b). [Note that SAT is included in the regression so the monotonic linear effect of GDP remains after controlling for SAT score]. We find that URM are less likely to graduate in six years at every level of HSGPA than are non-URM. In contrast, we find no similar difference when we stratify the plot by whether the student received the max Pell grant or not, a strong proxy for a low-income household (Figure 1b). The clear takeaway from the analysis of the 2010-2019 cohorts is the dominance of HSGPA in predicting student academic success. The results are in direct contrast to recent high-profile analyses of students from Ivy-plus colleges that demonstrated the superiority of SAT over HSGPA in predicting not only first-year academic outcomes, but post-college success as well.

The Lost Generation

Jacob Savage Compact Magazine

Date Posted:: December 17, 2025
Is Database:: Database
Is Important:: Important

Jacob Savage argues that the widespread discrimination against young white men in “high-status” sectors such as media and tech during the 2010s is a key driver of contemporary political dynamics among young men.

In 2011, the year I moved to Los Angeles, white men were 48% of lower-level TV writers; by 2024, they accounted for just 11.9%. The Atlantic’s editorial staff went from 53% male and 89% white in 2013 to 36% male and 66% white in 2024. White men fell from 39% of tenure-track positions in the humanities at Harvard in 2014 to 18% in 2023. The white men shut out of the culture industries didn’t surge into other high-status fields. At Google, white men went from nearly half the workforce in 2014 to less than a third by 2024—a 34% decline. In 2014, at Amazon, entry-level “professionals”—college graduates just starting out—were 42.3% white male. These were the employees who, if they’d advanced normally over the next decade, would be the mid-level managers of today. But mid-level Amazon managers fell from 55.8% white male in 2014 to just 33.8% in 2024—a decline of nearly 40%. In retrospect, 2014 was the hinge, the year DEI became institutionalized across American life.

Twelfth-Grade Math and Reading Scores in U.S. Hit New Low

Matt Barnum Wall Street Journal

Date Posted:: September 9, 2025
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New National Assessment of Educational Progress results show the share of American high school seniors who scored basic or above on national tests fell to the lowest level on record: 68% in reading and 55% in math.

American high-school seniors’ scores on major math and reading tests fell to their lowest levels on record, according to results released Tuesday by the U.S. Education Department. Twelfth-graders’ average math score was the worst since the current test began in 2005, and reading was below any point since that assessment started in 1992. The share of 12th-graders who were proficient slid by 2 percentage points between 2019 and 2024—to 35% in reading and 22% in math. The results are from tests that are part of the National Assessment of Educational Progress, administered to tens of thousands of students in early 2024. In reading, two-thirds of seniors could determine the purpose of a persuasive essay, but only one in five was able to draw a conclusion from such an essay, supported by the text. In math, 60% of students deduced the population of an area using information on size and density, while just under half correctly turned a real-world scenario into an algebraic expression.

Standardized Test Scores and Academic Performance at Ivy-Plus Colleges

John Friedman, Bruce Sacerdote, Douglas Staiger, and Michele Tine National Bureau of Economic Research

Date Posted:: March 18, 2025
Is Database:: Database
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Students at Ivy-plus colleges whose SAT/ACT scores were at the 99th percentile had 1st-year college GPAs 0.43 points higher than those who had scored at the 75th percentile, while high school GPAs had little predictive power. @John_N_Friedman

We analyze admissions and transcript records for students at multiple Ivy-Plus colleges to study the relationship between standardized (SAT/ACT) test scores, high school GPA, and first-year college grades. Standardized test scores predict academic outcomes with a normalized slope four times greater than that from high school GPA, all conditional on students’ race, gender, and socioeconomic status. Standardized test scores do not underpredict college performance for students from less advantaged backgrounds. Collectively these results suggest that standardized test scores provide important information to measure applicants’ academic preparation that is not available elsewhere in the application file. While some of the raw correlation between these variables relates to students’ demographic characteristics, much remains even when controlling for these variables. In contrast, high school GPA does not predict academic performance nearly as well. We also find no evidence of bias against students from less advantaged backgrounds, as students from such backgrounds do not outperform (and in some cases underperform) other students with the same test score

Can Gifted Education Help Higher-Ability Boys from Disadvantaged Backgrounds?

David Card, Eric Chyn, and Laura Giuliano National Bureau of Economic Research

Date Posted:: February 21, 2025
Is Database:: Database

Card et al, find that the 25-30 percentage point college enrollment gap between disadvantaged boys and girls with IQs of ~116 closed among students who qualified for a “gifted” program. @EricChyn

We study the effects of being identified as gifted in elementary school on subsequent test scores, courses and grades, and on the probability of entering college, for disadvantaged children in a large urban school district (“the District”). The law specifies a threshold of 130 [IQ] points for non-disadvantaged students, but allows districts to select a lower “Plan B” threshold [116 pts] for FRL and ELL students. The strict IQ threshold for gifted status provides the basis for a regression discontinuity (RD) evaluation of the impacts of being identified as gifted. Figure 6 illustrates how these impacts affect gender gaps by presenting the estimated mean potential outcomes for the complying boys (left side) and complying girls (right side) using an 8-point bandwidth. The estimated college entry rate for male compliers who narrowly miss the gifted threshold is 46%; the 28 ppt treatment effect of passing the threshold raises this to 74%, which equals the rate for female compliers who narrowly miss the threshold - being identified as gifted raises the college entry rate of marginally eligible boys to the same rate as girls.

Covid Learning Losses

David Leonhardt New York Times

Date Posted:: February 12, 2025
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Is Important:: Important

.@DLeonhardt reports a sharp partisan gap in learning loss: 8 of the 10 states with the biggest math declines since 2019 – likely due to prolonged school closures – voted Democratic, while 8 of the 10 smallest shortfalls voted Republican.

Many public schools in heavily Democratic areas stayed closed for almost a year — from the spring of 2020 until the spring of 2021. In some Republican areas, by contrast, schools remained closed for only the spring of 2020. Eight of the 10 states that have lost the most ground since 2019 voted Democratic in recent presidential elections. And eight of the 10 states with the smallest math shortfalls voted Republican. [Higher initial scores don’t] explain the post-pandemic patterns. For example, New Jersey (a blue state) and Utah (a red state) both had high math scores in 2019, but New Jersey has fared much worse since then.

The relationship btw low wage levels and numeracy skills is evident as data shows a significant share of workers earning less than two-thirds of median earnings also score at Level One or below in numeracy

SAT scores are known to be better predictors of college and post-college success in Ivy+ universities. By contrast, this study of a public urban university system with 11 colleges shows that for the 2010–2019 cohort, high school GPA strongly dominates SAT scores.

Related Articles:

Jacob Savage argues that the widespread discrimination against young white men in “high-status” sectors such as media and tech during the 2010s is a key driver of contemporary political dynamics among young men.

Related Articles:

New National Assessment of Educational Progress results show the share of American high school seniors who scored basic or above on national tests fell to the lowest level on record: 68% in reading and 55% in math.

Related Articles:

Students at Ivy-plus colleges whose SAT/ACT scores were at the 99th percentile had 1st-year college GPAs 0.43 points higher than those who had scored at the 75th percentile, while high school GPAs had little predictive power. @John_N_Friedman

Related Articles:

Card et al, find that the 25-30 percentage point college enrollment gap between disadvantaged boys and girls with IQs of ~116 closed among students who qualified for a “gifted” program. @EricChyn

Related Articles:

.@DLeonhardt reports a sharp partisan gap in learning loss: 8 of the 10 states with the biggest math declines since 2019 – likely due to prolonged school closures – voted Democratic, while 8 of the 10 smallest shortfalls voted Republican.

Related Articles: