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Effects of prose, document, and quantitative literacy and education on the wages of 1,456 young adults who worked full time were analyzed. Literacy and education did not have the same effects on income for all groups; not all groups depended on literacy and education to increase income. Different types of literacy had different effects on gender and racial/ethnic groups. (SK)

Focuses on the effects of literacy and education on the rate of income among Americans. Estimates on document literacy on rate of wages; Hourly wages as indicator of income; Increase of hourly wages on persons having document and prose literacy; Racial, ethnic factors in income achievement; Dilemma in enhancing individuals' income.