The gendered value of education in the ‘college-for-all’ era and the role of literacy and numeracy skills

Despite attaining higher education levels than ever before, women continue to earn less than men. Using data from 26 countries obtained from the Programme for the International Assessment of Adult Competencies (PIAAC), we examine how the supply of college-educated adults shapes gender differences in the value of educational attainment in today's labor market. Our analysis reveals two interrelated processes that disadvantage women. First, in high-supply contexts, women acquire college credentials at higher rates but are more constrained in acquiring high cognitive skills, particularly numeracy, leading to a misalignment between their credentials and skills. Second, in high-supply contexts, the returns to college credentials in accessing high pay decrease for both genders, while the importance of cognitive skills remains stable. Cognitive skills are increasingly vital in high-supply contexts, particularly for women, but college credentials remain a stronger safeguard against low pay. These results shed light on the gendered patterns of rewards to education across supply contexts and the income distribution, providing insights into the different incentives of men and women to pursue education and the stalling of the gender gap. Addressing the gender pay gap requires a comprehensive approach that both enhances educational attainment and prioritizes the development of high cognitive skills, particularly among women.