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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.

Suggested Citation

  • Boudarbat, Brahim & Lemieux, Thomas & Riddell, W. Craig, 2010. "The Evolution of the Returns to Human Capital in Canada, 1980-2005," IZA Discussion Papers 4809, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4809
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    More about this item

    Keywords

    human capital; wage differentials; Canada;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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