Summary This dissertation is motivated by the importance of basic skills for human capital development, and consequently for economic growth. Recent studies on basic skill proficiency demonstrate a concerning trend in the mastery of these skills. The international PISA study, for instance, which monitors basic skills proficiencies of 15-years-olds, concludes that one third of the Dutch students are insufficiently literate and a quarter of the Dutch students is insufficiently numerate. This suggests that a significant part of the Dutch population is presumed to be unable to function well in society. Given the importance of these basic skills, this is worrisome. This dissertation comprises four empirical chapters on basic skills in education. Its primary aim is to broaden knowledge of basic skills and to offer recommendations for policy improvements that effectively address the lack of basic skills proficiency. The first part of the dissertation contains one chapter to address the importance of early basic skills for life satisfaction in adulthood. The second part of the dissertation consists of two chapters, both concerned with the development of basic skills. The third part of the dissertation includes one chapter on whether environmental factors affect student performance. The first part of the dissertation, concerning the importance of early basic skills on adult life satisfaction, is a longitudinal study using the 1970 British Cohort Study data. The study examines whether early basic skills at age 10 predict life satisfaction in adulthood (ages 29157
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