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The Education Premium in Canada and the United States

Author

Listed:
  • J. B. Burbidge
  • L. Magee
  • A. Leslie Robb

Abstract

In the United States the education premium - the ratio of the earnings of university graduates to the earnings of high school graduates - has risen sharply in the last 20 years. Some economists and policymakers presume the same fact holds in Canada. Since so much of modern growth theory and micro- and macroeconomic policy turns on the education premium, it is important for social scientists and policymakers to know what has actually happened to the education premium. This paper argues that based on available evidence over the last 20 years the premium has been constant or has fallen in Canada.

Suggested Citation

  • J. B. Burbidge & L. Magee & A. Leslie Robb, 2002. "The Education Premium in Canada and the United States," Canadian Public Policy, University of Toronto Press, vol. 28(2), pages 203-217, June.
  • Handle: RePEc:cpp:issued:v:28:y:2002:i:2:p:203-217
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    References listed on IDEAS

    as
    1. A.L Robb & L. Magee & J.B. Burbidge, 2003. "WAGES in CANADA: SCF, SLID, LFS and the Skill Premium," Quantitative Studies in Economics and Population Research Reports 386, McMaster University.
    2. David Card & Francis Kramarz & Thomas Lemieux, 1999. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 843-877, August.
    3. Burbidge, John B & Magee, Lonnie & Robb, A Leslie, 1997. "Canadian Wage Inequality over the Last Two Decades," Empirical Economics, Springer, vol. 22(2), pages 181-203.
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    Citations

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    Cited by:

    1. David A. Green & Benjamin M. Sand, 2015. "Has the Canadian labour market polarized?," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 612-646, May.
    2. Osberg, Lars, 2013. "Instability implications of increasing inequality: Evidence from North America," Economic Modelling, Elsevier, vol. 35(C), pages 918-930.
    3. Morissette, Rene & Ostrovsky, Yuri & Picot, Garnett, 2004. "Tendances des salaires relatifs des personnes tres scolarisees dans une economie du savoir," Direction des etudes analytiques : documents de recherche 2004232f, Statistics Canada, Direction des etudes analytiques.
    4. Oleksiy Kryvtsov & Alexander Ueberfeldt, 2009. "What Accounts for the U.S.-Canada Education-Premium Difference?," Staff Working Papers 09-4, Bank of Canada.
    5. Boudarbat, Brahim & Lemieux, Thomas & Riddell, Craig, 2008. "The Evolution of the Returns to Human Capital in Canada, 1980-2006," Economics working papers craig_riddell-2008-15, Vancouver School of Economics, revised 22 Oct 2008.
    6. Philippe Belley & Marc Frenette & Lance Lochner, 2011. "Post-Secondary Attendance by Parental Income in the U.S. and Canada: What Role for Financial Aid Policy?," University of Western Ontario, Economic Policy Research Institute Working Papers 20113, University of Western Ontario, Economic Policy Research Institute.
    7. Rene Morissette & Anick Johnson, 2005. "Are good jobs disappearing in Canada?," Economic Policy Review, Federal Reserve Bank of New York, issue Aug, pages 23-56.
    8. Brahim Boudarbat & Thomas Lemieux & W. Craig Riddell, 2010. "The Evolution of the Returns to Human Capital in Canada, 1980-2005," Canadian Public Policy, University of Toronto Press, vol. 36(1), pages 63-89, March.
    9. Vincenzo Caponi & Miana Plesca, 2009. "Post-secondary education in Canada: can ability bias explain the earnings gap between college and university graduates?," Canadian Journal of Economics, Canadian Economics Association, vol. 42(3), pages 1100-1131, August.
    10. Frenette, Marc & Zeman, Klarka, 2007. "Why Are Most University Students Women? Evidence Based on Academic Performance, Study Habits and Parental Influences," Analytical Studies Branch Research Paper Series 2007303e, Statistics Canada, Analytical Studies Branch.
    11. Johnson, Anick & Morissette, Rene, 2004. "Earnings of Couples with High and Low Levels of Education, 1980-2000," Analytical Studies Branch Research Paper Series 2004230e, Statistics Canada, Analytical Studies Branch.
    12. Louis N. Christofides & Michael Hoy & Ling Yang, 2008. "The Gender Imbalance in Participation in Canadian Universities (1977-2005)," University of Cyprus Working Papers in Economics 5-2008, University of Cyprus Department of Economics.
    13. Louis N. Christofides & Michael Hoy & Ling Yang, 2006. "The Gender Imbalance in Participation in Canadian Universities (1977-2003)," Working Papers 0610, University of Guelph, Department of Economics and Finance.
    14. A.L Robb & L. Magee & J.B. Burbidge, 2003. "WAGES in CANADA: SCF, SLID, LFS and the Skill Premium," Quantitative Studies in Economics and Population Research Reports 386, McMaster University.
    15. Johnson, Anick & Morissette, Rene, 2005. "Are Good Jobs Disappearing in Canada?," Analytical Studies Branch Research Paper Series 2005239e, Statistics Canada, Analytical Studies Branch.
    16. Philippe Belley & Marc Frenette & Lance Lochner, 2010. "Post-Secondary Attendance by Parental Income: Comparing the U.S. and Canada," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20103, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    17. Surendra Gera & Samuel Laryea & Thitima Songsakul, 2005. "International Mobility of Skilled Labour: Analytical and Empirical Issues, and Research Priorities," International Trade 0507004, EconWPA.
    18. Sylvain Dessy & Safa Ragued, 2013. "Whither the Progressive Tax?," Cahiers de recherche 1340, CIRPEE.
    19. Picot, Garnett & Sweetman, Arthur, 2005. "The Deteriorating Economic Welfare of Immigrants and Possible Causes: Update 2005," Analytical Studies Branch Research Paper Series 2005262e, Statistics Canada, Analytical Studies Branch.
    20. Stéphanie Lluis, 2009. "The Structure of Wages by Firm Size: A Comparison of Canada and the USA," LABOUR, CEIS, vol. 23(2), pages 283-317, June.
    21. Peter Howitt, 2007. "Innovation, Competition and Growth: A Schumpeterian Perspective on Canada’s Economy," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 246, February.
    22. Hon-Kwong Lui & Wing Suen, 2005. "The Shrinking Earnings Premium for University Graduates in Hong Kong: The Effect of Quantity or Quality?," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 242-254, April.
    23. Federico De Francesco, 2010. "Wage Inequality and Entrepreneurship," 2010 Meeting Papers 959, Society for Economic Dynamics.

    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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