This paper examines aspects of the knowledge content of work and its relationship with workers' education level and literacy skills. An executive summary appears in English and French. After an introduction, Chapter 2 classifies occupations into seven categories based on knowledge content of the work. Chapter 3 develops profiles of the prevalence in each occupational category of work activities--in particular those involving use of literacy skills--using data from the Canadian sample of the International Adult Literacy Survey (IALS). The profiles show that, while use of literacy skills and other knowledge-intensive activities is most prevalent in skilled information occupations, these activities pervade all occupational categories. Chapter 4 examines the apparent mismatch between educational qualifications of university graduates and knowledge content of occupations in which they work. IALS data show that university graduates with low levels of literacy skills are far more likely to experience job-education mismatch (work in industries that require less than a bachelors degree) than are other university graduates and that mismatch is associated with sizeable earnings loss for postsecondary graduates. The chapter suggests that the most probable explanation for the increased job-education mismatch for university graduates between 1981-91 is that the number of university graduates in the workforce increased more rapidly than the number of jobs in the skilled information group of occupations. Appendixes contain initial and final assignments of occupations, output of discriminant analysis, and 10 references. (YLB)