The authors would like to thank the Swedish authorities, as well as OECD colleagues, Christophe Andr6 and Vincent Koen (Economics Department), William Thorn (Education Directorate), Emily Farchy, Kristoffer Lundberg and Guillermo Montt (Employment, Labour and Social Affairs Directorate) for helpful comments and suggestions. Thomas Chalaux provided statistical research, and Mercedes Burgos and Nadine Dufour secretarial assistance. When controlling for a set of socio-demographic variables, a one-standard-deviation increase in literacy proficiency is associated with 85% higher odds of being employed.