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Provincial Returns to Education for 21 to 35 year-olds: Results from the 1991-2006 Canadian Analytic Censuses Files

  • Emanuelle Bourbeau
  • Pierre Lefebvre
  • Philip Merrigan

This paper examines the evolution of the returns to education and experience from 1990 to 2005 in Canada and across the provinces. The focus is on the earnings of young adults, age 21 to 35 at the times of the Censuses, classified by very detailed education groups, age and gender. Returns to higher education are very different across provinces and are particularly high in the western part of the nation. Over time, they are quite stable, but they are increasing for females in 2005 relative to 2000 in particular Bachelor’s degree and higher degrees. This is surprising given the very important increase in the supply of well educated females since 1991. These returns can explain partially why so many young women turned to higher education over time. It is also surprising that males have not followed suit, given that the returns are just as high for them as for women. Yet, the returns for university education are much higher than the returns for college or CEGE. Also, returns for trade degrees are much higher for males than for females. The male-female gap in higher education will certainly help to reduce the wage gap between genders, however, public policy must be concerned by the difference between male and female participation in higher education.

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Paper provided by CIRPEE in its series Cahiers de recherche with number 1106.

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Date of creation: 2011
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Handle: RePEc:lvl:lacicr:1106
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  2. Campolieti, Michele & Fang, Tony & Gunderson, Morley, 2009. "Labour Market Outcomes and Skills Acquisition of High-School Dropouts," CLSSRN working papers clsrn_admin-2009-25, Vancouver School of Economics, revised 15 Mar 2009.
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  4. Boudarbat, Brahim & Lemieux, Thomas & Riddell, W. Craig, 2010. "The Evolution of the Returns to Human Capital in Canada, 1980-2005," CLSSRN working papers clsrn_admin-2010-2, Vancouver School of Economics, revised 30 Jan 2010.
  5. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, 05.
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  8. Drolet, Marie, 2005. "Participation aux etudes postsecondaires au Canada : le role du revenu et du niveau de scolarite des parents a-t-il evolue au cours des annees 1990?," Direction des etudes analytiques : documents de recherche 2005243f, Statistics Canada, Direction des etudes analytiques.
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  10. Carneiro, Pedro & Heckman, James J., 2002. "The Evidence on Credit Constraints in Post-Secondary Schooling," IZA Discussion Papers 518, Institute for the Study of Labor (IZA).
  11. Ermisch, John & Francesconi, Marco, 2001. "Family Matters: Impacts of Family Background on Educational Attainments," Economica, London School of Economics and Political Science, vol. 68(270), pages 137-56, May.
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  13. Keane, Michael P & Wolpin, Kenneth I, 2001. "The Effect of Parental Transfers and Borrowing Constraints on Educational Attainment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 1051-1103, November.
  14. Boudarbat, Brahim, 2004. "Earnings and Community College Field of Study Choice in Canada," IZA Discussion Papers 1156, Institute for the Study of Labor (IZA).
  15. Frenette, Marc, 2007. "Why Are Youth from Lower-income Families Less Likely to Attend University? Evidence from Academic Abilities, Parental Influences, and Financial Constraints," Analytical Studies Branch Research Paper Series 2007295e, Statistics Canada, Analytical Studies Branch.
  16. Pierre Lefebvre & Philip Merrigan, 2010. "Labour Outcomes of Graduates and Dropouts of High School and Post-secondary Education: Evidence for Canadian 24- to 26-year-olds in 2005," Cahiers de recherche 1045, CIRPEE.
  17. Oreopoulos, Philip, 2007. "Do dropouts drop out too soon? Wealth, health and happiness from compulsory schooling," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2213-2229, December.
  18. Ana M. Ferrer & W. Craig Riddell, 2002. "The role of credentials in the Canadian labour market," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 879-905, November.
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