Labor market outcomes of 25- to 64-year-olds were examined as a function of sex, prose proficiency level, and highest educational level attained. The data for 1992 confirmed that educational attainment and literacy level are both positively associated with higher annual earnings and lower unemployment rates and that literacy is positively associated with earning higher wages and a reduced likelihood of being unemployed within different levels of educational attainment. Of males whose highest education level in 1992 was a high school diploma, those with a prose proficiency level of 4 earned 29% more annually than did those with a prose literacy proficiency level of 2. No statistically significant difference between the annual earnings of females with prose proficiency levels of 2 and 4 were found; however, of females whose highest education level was a high school diploma, those with a prose proficiency level of 4 had an unemployment rate of 5% whereas those with a prose proficiency level of 2 had an unemployment rate of 12%. Among females holding a bachelor's degree, unemployment rates were similar for those groups with prose literacy proficiencies of 2, 3, and 4. (MN)