The Conference Board survey cited a list of benefits arising from enhanced literacy skills as suggested by human capital theory and by previous studies. Table 1 contains, in descending order according to the number of times cited, the benefits observed by businesses arising from literacy training. The most widely observed benefits consisted of the improved learning facility of the employees, the ability of employees to work together as a team, and improved labour-management relations. Also widely observed were many line and production benefits such as quality improvements, increased output and reduced time per task.

At the very core of these benefits is the significant impact that literacy training has on the self-esteem and self-confidence of the participating individuals. Employers noted that workers suffering from literacy deficits are very conscious of this fact and often try to hide this skill deficit from their co-workers. Their employees recognize that this skill deficit has cut them off from many opportunities to

Exhibit 1
What Is Literacy?

The concept and definition of literacy have changed considerably over the past 20 years. This is significant because it shapes the way that we use information about literacy to develop policies and practices. More complex definitions and concepts that have been recently developed facilitate more sophisticated assessments and evaluations of the impact of enhanced literacy skills on economic well- being. They also support the introduction of increasingly sophisticated and effective interventions to bring about improvements in literacy in the workplace.

Early work in the literacy field defined literacy as a condition that adults either have or do not have. The problems with this approach are that it fails to take into account the multifaceted nature of literacy; it ignores the reality that skills are a moving target because of the changing nature of the skills required to function effectively in the labour market; and it ignores the fact that literacy is about lifelong learning and that literacy skills are maintained and strengthened through regular use.

By comparison, the International Adult Literacy Survey (IALS), a seven-country comparative study of adult literacy, incorporates the most sophisticated definition of literacy developed to date. IALS promotes the definition of literacy as a skill-based proficiency continuum - that is, literacy is a relative rather than an absolute concept. IALS defines literacy as: "Using printed and written information to function in society, to achieve one's goals, and to develop one's knowledge and potential."'

Because literacy cannot be narrowed down to a single skill able to deal with all sods of text, nor can it be defined as an infinite set of skills able to address every type of text, IALS defines three distinct literacy types - prose literacy, document literacy and quantitative literacy - and five levels of literacy within each type.

Prose Literacy - the knowledge and skills needed to understand and use information from texts including editorials, news stories, poems and fiction
Document Literacy - the knowledge and skills required to locate and use information contained in various formats, including job applications, payroll forms, transportation schedules, maps, tables and graphics
Quantitative Literacy - the knowledge and skills required to apply arithmetic operations, either alone or sequentially, to numbers embedded in printed materials, such as balancing a cheque book, figuring out a tip, completing an order form or determining the amount of interest on a loan from an advertisement

The Conference Board employed the IALS definition as the basis for our research and analysis. As the most sophisticated definition currently available, IALS provides the greatest possible scope and analytical depth when undertaking assessments and evaluations of the economic impact of improved literacy skills in this study.

1 Organization for Economic Co-operation and Development and Ministry Of Industry Canada, Literacy, Economy and Society (Paris/Ottawa, 1995), p.14.

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