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 2013 has also shown the importance of cognitive skills (literacy, numeracy and problem solving in technology-rich environments) on labour market outcomes (OECD, 2013b). 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.