Artaxerxes III and the late Achaemenid revival
The question of ancient literacy rates has important implications for how we understand the nature and reach of written culture in Greece and Rome. Modern estimates vary widely, from under 10% to over 30% for Roman Italy, reflecting genuine uncertainty in the evidence.
The key question is what counts as literacy. Reading simple inscriptions or writing one's own name requires far less skill than reading literary texts, and the range from functional literacy to full textual fluency was probably as wide in antiquity as in pre-modern societies generally. The abundance of graffiti at Pompeii — election notices, commercial announcements, jokes, obscenities — suggests that at least functional reading and writing was widespread among urban populations.
The role of professional scribes and public readers means that full personal literacy was not required for participation in written culture. Letters could be dictated to scribes and read aloud by recipients; legal and commercial documents were drafted by specialists; public readings of literature were a significant cultural institution. The line between oral and literate culture was more permeable than modern literacy assumptions suggest.
The educational system — private elementary teachers (grammatistai or ludi magistri), grammar schools, and rhetorical training for the elite — was paid for privately and therefore strongly correlated with economic status. Slaves in wealthy households might receive excellent educations as secretaries and managers; poor freeborn children might learn only enough to function in their trades. The literary culture that has survived is necessarily the product of the educated minority.