Canada's hidden deficit: the social cost of low literacy skills

This paper discusses the social cost of low literacy skills in the population and serves to provide a framework for thinking about social costs of low literacy skills over the life course of a Canadian citizen. While it is difficult to measure low literacy, the authors have collected significant data to prove that low literacy places a monumental burden on individuals and society. These social costs imposed by low literacy have been divided into three categories in this paper: (1) Opportunity costs deal with the economic, social and cultural benefits that are necessary to cope with everyday challenges. Low literacy amongst a population lowers economic growth because people are less likely to vote and volunteer and fewer people are able to participate in ongoing learning and skill development. (2) Remedial costs involve the costs the government and communities pay in order to mitigate the damage of low literacy. This includes the costs incurred by those who are financially dependent on the government. These costs are also evident in the health care system where there is a link between higher health care costs and low literacy rates. (3) Inter-generational costs point out that the child’s capacity to learn basic literacy skills is strongly influenced by the mother’s education and the home environment. These costs show how the literacy gaps in one generation can be passed on to the next. Low literacy skills impede wealth creation, undermine competitiveness and create significant cost burden on federal, provincial and municipal budgets which are large and ongoing. To avoid these costs, the improvement of literacy skills must be addressed. The authors outline the barriers to literacy and provide a cost-benefit analysis for each stage of acquiring basic literacy skills - early childhood, the primary school, adolescence and adulthood.

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