Why Reading Changes Income

Returns to education in sub-Saharan AfricaPsacharopoulos and Patrinos (World Bank, 2018) found that each additional year of schooling raises an individual's lifetime earnings by an average of 9-12% in sub-Saharan Africa. The returns compound: secondary school completion multiplies primary earnings significantly.

What a reading gap costs over a lifetime - across all three regionsChildren whose early reading lags lose an average of 3-4 years of education compared to fluent peers (UNESCO). At a 10% annual earnings return, three lost years means roughly 30% lower lifetime income - every year, permanently. This pattern holds equally in Oromia, Amhara, and SNNP. The reading gap is an economic gap. It starts at Grade 2.

The lifetime cost of a reading gap

A reading gap left unaddressed costs roughly 30% of lifetime earnings - every year, permanently.

Reads fluently

Baseline

Reading lags

-30%

Three lost years of school 10% annual earnings return = 30% lower income, permanently. Not a projection - this is the established relationship in the data across sub-Saharan Africa.

Source: Psacharopoulos & Patrinos, World Bank 2018 UNESCO Institute for Statistics
The earnings-gap relationship is consistent across Ethiopia's regions. Reading Corps pilots in Assela, Oromia - Amhara and SNNP are the next intended regions.

The compounding effect

Each additional year of school compounds. Reading fluency opens the first year - and every one after it.

Cumulative lifetime earnings gain 10% per additional year of school

Year 1

+10%

Year 2

+21%

Year 3

+33%

Year 4

+46%

Year 5

+61%

A child who reads fluently by Grade 3 is on track for these years. A child who falls behind at Grade 3 loses 3-4 of them on average. Reading Corps works at the point where those years are still recoverable.

Source: Psacharopoulos & Patrinos, World Bank 2018 10% mid-range annual return estimate

The timing of the investment

Early-grade literacy is the highest-return education investment available. The window is Grades 2-4.

The income case is downstream. Reading Corps works upstream - where the gap is still closeable and the cost per reading level gained is lowest.

Both children are in school Grade 2 Reading lags behind grade level

Gap left unaddressed

-30%

lifetime earnings

3-4 years of school lost on average. The compounding effect works in reverse. Higher remediation cost later.

Reading Corps Grades 2-4

+1

reading level in one year

The first link in the chain restored. Grade progression continues. The compounding years stay open.

Psacharopoulos & Patrinos 2018 UNESCO early-grade literacy evidence BiftuSpark will publish checked results each cycle

Each additional year of school raises lifetime earnings by 9 to 12%. Reading fluency is what gets children to those years. The gap starts before Grade 3 - and it looks the same in Oromia, Amhara, and SNNP.

A reading gap left unaddressed costs roughly 30% of lifetime earnings - every year, permanently.

Each additional year of school compounds. Reading fluency opens the first year - and every one after it.

Early-grade literacy is the highest-return education investment available. The window is Grades 2-4.

$25 a month. The highest-return education investment available.