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Skills and Earnings in the Full-Time Labor Market
Neeta Fogg, Paul Harrington, and Ishwar Khatiwada

Appendix B: Definitions of Variables in Earnings Regressions

Definitions of the Dependent and the Independent Variables Appearing in the Earnings Regression Models Predicting the Monthly Earnings of 25- to 54-Year-Old Full-Time Workers, PIAAC 2012-2014

Dependent variable:

lnearns = natural log of monthly earnings, including bonuses for wage and salary earners and self-employed workers

Independent variables:

Individual literacy and numeracy score

PVlit = continuous standardized literacy proficiency score of 16 and older persons in PIAAC survey

PVnum = continuous standardized numeracy proficiency score of 16 and older persons in PIAAC survey

Individual literacy/numeracy level

Base group is level 2

pv_litdum1b = a dichotomous literacy proficiency level variable

= 1 if literacy proficiency level was 1 or below

= 0, if else

pv_litdum3 = a dichotomous literacy proficiency level variable

= 1 if literacy proficiency level was 3

= 0, if else

pv_litdum 45 = a dichotomous literacy proficiency level variable

= 1 if literacy proficiency level was 4 or 5

= 0, if else

pv_numdum1b = a dichotomous numeracy proficiency level variable

= 1 if numeracy proficiency was 1 or below

= 0, if else

pv_numdum2 = a dichotomous numeracy proficiency level variable

= 1 if numeracy proficiency level was 3

= 0, if else

pv_numdum 45 = a dichotomous numeracy proficiency level variable

= 1 if numeracy proficiency level was 4 or 5

= 0, if else

Gender

Base group is female

male = a dichotomous gender variable

= 1, if male

= 0, if female

Race-Ethnicity

Base group is White

black = a dichotomous race/ethnic variable

= 1, if Black

= 0, if else

hispanic = a dichotomous race/ethnic variable

= 1, if Hispanic

= 0, if else

other_race = a dichotomous race/ethnic variable

= 1, if Asian/Pacific Islander or "other" races

= 0, if else

Nativity Status

Base group is native-born

foreign_born = a dichotomous nativity status variable

= 1, if foreign-born

= 0, if native-born

Educational Attainment Levels

Base group is high school diploma

no_hsdiploma = a dichotomous educational attainment level variable

= 1, if 12 or less than 12 years of schooling, no high school diploma

= 0, if else

some_college = a dichotomous educational attainment level variable

= 1, if some years of college, but without certification or associate degree

= 0, if else

certification = a dichotomous educational attainment level variable

= 1, if some type of certification

= 0, if else

assoc_degree = a dichotomous educational attainment level variable

= 1, if associate's degree

= 0, if else

ba_degree = a dichotomous educational attainment level variable

= 1, if bachelor's degree

= 0, if else

masters_degree = a dichotomous educational attainment level variable

= 1, if master's degree

= 0, if else

prof_degree = a dichotomous educational attainment level variable

= 1, if professional degree

= 0, if else

phd_degree = a dichotomous educational attainment level variable

= 1, if Ph.D. degree

= 0, if else

School Enrollment Status

Base group is not enrolled in school

enrolled = a dichotomous school enrollment variable

= 1, if enrolled in school

= 0, if not enrolled in school

English Speaking Proficiency

Base group is speak English well

english_writing_very_well = a dichotomous English writing proficiency variable

= 1, if write English very well

= 0, if else

english_writing_notwell = a dichotomous English writing proficiency variable

= 1, if write English not well or not at all

= 0, if else

Class of Workers Status

nonprofit_sector = a dichotomous class of worker status variable

= 1, if employed in nonprofit sector

= 0, if otherwise

public_sector = a dichotomous class of worker status variable

= 1, if employed in public sector

= 0, if otherwise

Base group is private sector workers

Disability Status

with_disabilities = a dichotomous disability status variable

= 1, if with disabilities (difficulty seeing print, hearing conversation, or diagnosed with a learning disability)

= 0, if else

Weekly Hours of Work

weekly_hours = continuous weekly hours of work in the current job

Years of Work Experience

experience = continuous years of actual work experience

experience_sq = continuous years of actual work experience squared

Region of Residence of Worker

Base group is South region

northeast = a dichotomous region of residence variable

= 1, if region of residence was Northeast region

= 0, if else

midwest = a dichotomous region of residence variable

= 1, if region of residence was Midwest region

= 0, if else

west = a dichotomous region of residence variable

= 1, if region of residence was West region

= 0, if else

Occupation of Workers (4 skills-based categories)

Base group is skilled occupation

semi_skilled_white_collar_occ = a dichotomous occupation variable

= 1, if semi-skilled white-collar occupation

= 0, if else

semi_skilled_blue_collar_occ= a dichotomous occupation variable

= 1, if semi-skilled blue-collar occupation

= 0, if else

elementary_occ = a dichotomous occupation variable

= 1, if elementary occupation

= 0, if else

Table B-1: Descriptive Statistics of 25- to 54-Year-Old Full-Time Workers Included in the Regression Analysis

Variable

Obs.

Mean

Std. Dev.

Min

Max

Standardized Plausible Values

pvlit

8,488

0.00

1.00

-3.955

3.229

pvnum

8,488

0.00

1.00

-3.739

3.228

Actual Plausible Values Score

pvlit

8,488

270

51

69

434

pvnum

8,488

255

56

46

436

no_hsdiploma

2,242

0.061

0.239

0

1

somecollege

2,242

0.121

0.327

0

1

certification

2,242

0.093

0.290

0

1

associatesdegree

2,242

0.103

0.305

0

1

bachelorsdegree

2,242

0.234

0.423

0

1

mastersdegree

2,242

0.115

0.319

0

1

professionaldegree

2,242

0.029

0.168

0

1

phddegree

2,242

0.015

0.122

0

1

male

2,242

0.522

0.500

0

1

hispanic

2,242

0.129

0.335

0

1

black

2,242

0.134

0.341

0

1

asian_pi

2,242

0.051

0.220

0

1

other_race1

2,242

0.021

0.145

0

1

foreign_born

2,242

0.152

0.359

0

1

with_disabilities

2,242

0.174

0.379

0

1

enrolled

2,242

0.106

0.308

0

1

weekly_hours

2,242

44.814

7.334

35

60

northeast

2,242

0.191

0.393

0

1

midwest

2,242

0.219

0.414

0

1

west

2,242

0.169

0.375

0

1

nonprofit_sector

2,242

0.070

0.256

0

1

public_sector

2,242

0.242

0.428

0

1

semi_skilled_white_collar_occ

2,242

0.228

0.420

0

1

semi_skilled_blue_collar_occ

2,242

0.157

0.364

0

1

elementary_occ

2,242

0.054

0.227

0

1

missing_occ

2,242

0.011

0.105

0

1

eng_writing_very_well

2,242

0.839

0.367

0

1

english_writing_notwell

2,242

0.050

0.219

0

1

experience

2,242

17.971

9.311

0

47

experiencesq

2,242

409.613

387.574

0

2209