| Equation | (# participants who achieve seventh grade reading level) x (% participants who receive services solely because of program) x (% increase in earnings due to improved literacy) x ($ average annual earnings of individuals with less than 8th grade) x (# working years) |
| Explanation | This metric estimates the impact of a program for adults that increases English literacy up to at least a seventh grade reading level on lifetime earnings. Participants who achieve seventh grade reading level: Reported by program. Percentage of these participants who receive services solely because of the program: Estimated by Constellation Fund staff. Average annual earnings of individuals with less than 8th grade: [$13,875]. The is the average annual earnings of individuals with less than an 8th grade education level, a proxy for low English literacy skills computed using ACS data (U.S. Census Bureau, 2016). Percentage increase in earnings due to improved literacy: [10%]. We estimate a 10 percent average earnings boost due to improved literacy based on Sum, Kirsch & Yamamoto (2004). This research indicates that individuals who improved from very low literacy levels (second- to seventh-grade equivalency) to more moderate literacy levels (seventh- to tenth-grade equivalency) experienced higher earnings. Number of working years: Estimate from participation age to age 65. These benefits are then discounted to present value. |
| References | Sum, A., Kirsch, I. & Yamamoto, K. (2004). Pathways to labor market success: The literacy proficiency of U.S. adults. Princeton, NJ: Educational Testing Service, Policy Information Center. Retrieved from https://www.ets.org/research/policy_research_reports/publications/report/2004/idwc U.S. Census Bureau. (2016). American Community Survey 5-year estimates – public use microdata sample, 2012-2016. Generated using Public Use Microdata Area (PUMA) in the Seven-county Twin Cities Metropolitan Area. Retrieved from http://factfinder.census.gov |
EDU010 Low literacy programs for adults leading to increased annual earnings
