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The Evolution of the Returns to Human Capital in Canada, 1980-2005

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  • Boudarbat, Brahim

    ()
    (University of Montreal)

  • Lemieux, Thomas

    ()
    (University of British Columbia, Vancouver)

  • Riddell, W. Craig

    ()
    (University of British Columbia, Vancouver)

Abstract

We examine the evolution of the returns to human capital in Canada over the period 1980-2005. Our main finding is that returns to education increased substantially for Canadian men, contrary to conclusions reached previously. Most of this rise took place in the early 1980s and since 1995. Returns to education also rose, albeit more modestly, for Canadian women. Another important development is that after years of expansion, the wage gap between younger and older workers stabilized after 1995. Controlling for work experience and using Canadian Census data appear to account for the main differences between our results and earlier findings.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4809.

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Length: 46 pages
Date of creation: Mar 2010
Date of revision:
Handle: RePEc:iza:izadps:dp4809

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Keywords: human capital; wage differentials; Canada;

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References

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  1. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 82(2), pages S76-S108, Part II, .
  2. Picot, Garnett & Morissette, Rene & Kapsalis, Costa, 1999. "The Returns to Education and the Increasing Wage Gap Between Younger and Older Workers," Analytical Studies Branch Research Paper Series 1999131e, Statistics Canada, Analytical Studies Branch.
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Cited by:
  1. Emanuelle Bourbeau & Pierre Lefebvre & Philip Merrigan, 2011. "Provincial Returns to Education for 21 to 35 year-olds: Results from the 1991-2006 Canadian Analytic Censuses Files," Cahiers de recherche, CIRPEE 1106, CIRPEE.
  2. Alexander Murray & Andrew Sharpe, 2011. "Human Capital and Productivity in British Columbia," CSLS Research Reports, Centre for the Study of Living Standards 2011-10, Centre for the Study of Living Standards.
  3. Osberg, Lars, 2013. "Instability implications of increasing inequality: Evidence from North America," Economic Modelling, Elsevier, Elsevier, vol. 35(C), pages 918-930.
  4. Ferrer, Ana M. & Menendez, Alicia, 2009. "The Returns to Flexible Postsecondary Education: The Effect of Delaying School," CLSSRN working papers, Vancouver School of Economics clsrn_admin-2009-26, Vancouver School of Economics, revised 15 Mar 2009.
  5. Gimenez-Nadal, Jose Ignacio & Sevilla, Almudena, 2012. "Trends in Time Allocation: A Cross-Country Analysis," IZA Discussion Papers 6709, Institute for the Study of Labor (IZA).

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