ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Literacy rate has a vast effect on the standard of living of the people of a country. An illiterate person cannot get a good job and therefore will not enough money because the jobs with high salary packages are reserved for that population of the country which has a high literacy rate.

Detailed explanation-2: -Literacy improves the economy and creates jobs If all students in low-income countries had basic reading skills, 171 million people could escape extreme poverty. Illiteracy comes at a high price. According to the World Literacy Foundation, illiteracy costs the global economy $1.5 trillion annually.

Detailed explanation-3: -It will reduce the occupational immobility of labor and will also improve the employability of the labor supply. Unskilled labors are seasonally employed, mainly in agricultural fields, and paid minimal wages. Imbibing skills in these workers will ensure them more permanent jobs and higher wage rates.

Detailed explanation-4: -It shows that the main determinants of worldwide literacy are enrollment rates, average years of schooling of adults, and life expectancy at birth.

Detailed explanation-5: -Literate adults are more capable of being able to take care of their children. Parents who have a basic education have an easier time making sure their children live to be over the age of five. This way, the cycle of poverty can be broken.