as education attainment is easily observable for employers it acts as a powerful signalling device for youth trying to enter the labour market the oecd skills outlook has also shown the importance of cognitive skills literacy numeracy and problem solving in technologyrich environments on labour market outcomes oecd b as shown in figure a having attained at least an upper secondary education reduces the probability of having low literacy skills however individuals with a similar level of education may not have the same skills as skill formation depends on the quality of the education system in addition to other factors