Existing cross-national research on educational attainment does not fully address whether the same level of educational attainment generates the same level of literacy skills in different countries. We analyze literacy skills data for young adults from 19 countries in the 1994-1998 International Adult Literacy Survey and find that in all countries, individuals with a higher level of educational attainment tend to have greater literacy skills. However, there is substantial variation across countries in the size of literacy gaps by levels of educational attainment. In particular, young adults in the United States show the largest literacy gaps. Using two-level hierarchical linear models, we find that cross-national differences in the literacy gap between more- and less-educated individuals are systematically linked to the degree of between-school inequality in school resources (instructional materials, class size, teachers' experience and certification). (Contains 3 figures, 4 tables and 11 notes.)