IDEAS home Printed from https://ideas.repec.org/p/sls/resrep/1105.html

The Labour Market and Economic Performance of Canada’s First Nations Reserves: The Effect of Educational Attainment and Remoteness

Author

Listed:
  • Andrew Sharpe

  • Simon Lapointe

Abstract

The goal of this report is to investigate the relationship between educational attainment, remoteness, and labour market and economic performance at the reserve level for Aboriginal Canadians. The report uses reserve-level data on average earnings, GDP per capita, labour market indicators and distance to a service centre for 312 reserves. Using descriptive statistics, simple correlation and multiple regression analysis, the report draws conclusion on four important questions. First, the report finds that a higher level of educational attainment, on average, has a positive effect on the labour market performance of a reserve. Then, a positive link is found between educational attainment and economic performance (average earnings and GDP per capita). Also, the report finds evidence that remoteness of a reserve plays a role in its labour market and economic performance. Specifically, reserves situated near urban centres fare better than the ones in rural/remote areas and those not connected by road to a service centre all year long (special access). However, when controlling for characteristics of reserves, the very remote reserves seem to fare better than expected in comparison to urban reserves. Yet, when an instrumental variable is used to account for the possibility that educational attainment is endogenous in the model, the remoteness of a reserve appears to play no role in determining reserve labour market or economic performance. Finally, the report also analyses the role of governance on labour market and economic performance. It finds that better governance is correlated to better labour market performance, higher average earnings and higher GDP per capita.

Suggested Citation

  • Andrew Sharpe & Simon Lapointe, 2011. "The Labour Market and Economic Performance of Canada’s First Nations Reserves: The Effect of Educational Attainment and Remoteness," CSLS Research Reports 2011-05, Centre for the Study of Living Standards.
    • Handle: RePEc:sls:resrep:1105
    as

    Download full text from publisher

    File URL: http://www.csls.ca/reports/csls2011-05.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andrew Sharpe & Jean-Francois Arsenault & Simon Lapointe, 2007. "The Potential Contribution of Aboriginal Canadians to Labour Force, Employment, Productivity and Output Growth in Canada, 2001-2017," CSLS Research Reports 2007-04, Centre for the Study of Living Standards.
    2. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    3. Michael P. Murray, 2006. "Avoiding Invalid Instruments and Coping with Weak Instruments," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 111-132, Fall.
    4. Andrew Sharpe & Jean-François Arsenault, 2010. "Investing in Aboriginal Education in Canada: An Economic Perspective," CSLS Research Reports 2010-03, Centre for the Study of Living Standards.
    5. Andrew Sharpe & Jean-François Arsenault & Fraser Cowan, 2009. "The Effect of Increasing Aboriginal Educational Attainment on the Labour Force, Output and the Fiscal Balance," CSLS Research Reports 2009-03, Centre for the Study of Living Standards.
    6. repec:idq:ictduk:12795 is not listed on IDEAS
    7. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    8. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413, January.
    9. Martine Rutten, 2009. "The Economic Impact of Medical Migration: An Overview of the Literature," The World Economy, Wiley Blackwell, vol. 32(2), pages 291-325, February.
    10. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    11. Evguenia Tsiroulnitchenko & Elspeth Hazell, 2011. "Economic Activity of the On-Reserve Aboriginal Identity Population in Canada: Gross Domestic Product Estimates for Indian Reserves, 2000 and 2005," CSLS Research Reports 2011-08, Centre for the Study of Living Standards.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Evan Capeluck & Andrew Sharpe, 2013. "Labour Market Prospects for the Métis in the Canadian Mining Industry," CSLS Research Reports 2013-02, Centre for the Study of Living Standards.
    2. Centre for the Study of Living Standards, 2013. "The Contribution of Broadband to the Economic Development of First Nations in Canada," CSLS Research Reports 2013-04, Centre for the Study of Living Standards.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. P. Dorian Owen, 2017. "Evaluating Ingenious Instruments for Fundamental Determinants of Long-Run Economic Growth and Development," Econometrics, MDPI, vol. 5(3), pages 1-33, September.
    2. Kyriacou, Andreas P., 2016. "Individualism–collectivism, governance and economic development," European Journal of Political Economy, Elsevier, vol. 42(C), pages 91-104.
    3. Carmignani, Fabrizio & Chowdhury, Abdur, 2011. "The Development Effects of Natural Resources: A Geographical Dimension," Working Papers and Research 2011-09, Marquette University, Center for Global and Economic Studies and Department of Economics.
    4. Stephen Knowles & P. Dorian Owen, 2010. "Which Institutions are Good for Your Health? The Deep Determinants of Comparative Cross-country Health Status," Journal of Development Studies, Taylor & Francis Journals, vol. 46(4), pages 701-723.
    5. Sambit Bhattacharyya, 2009. "Root Causes of African Underdevelopment," Journal of African Economies, Centre for the Study of African Economies, vol. 18(5), pages 745-780, November.
    6. Alan Martina, 2007. "A Class of Poverty Traps: A Theory and Empirical Tests," ANU Working Papers in Economics and Econometrics 2007-482, Australian National University, College of Business and Economics, School of Economics.
    7. Alvar Kangur, 2008. "What rules in the 'deep' determinants of comparative development?," Economics Series Working Papers 386, University of Oxford, Department of Economics.
    8. Rok Spruk & Mitja Kovac, 2018. "Inefficient Growth," Review of Economics and Institutions, Università di Perugia, vol. 9(2).
    9. Stöver, Jana, 2009. "Do institutions affect sustainability?," HWWI Research Papers 1-18, Hamburg Institute of International Economics (HWWI).
    10. Subha Mani, 2012. "Is there Complete, Partial, or No Recovery from Childhood Malnutrition? – Empirical Evidence from Indonesia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(5), pages 691-715, October.
    11. Badinger, Harald, 2008. "Trade policy and productivity," European Economic Review, Elsevier, vol. 52(5), pages 867-891, July.
    12. Grimm, Michael & Klasen, Stephan, 2007. "Geography vs. Institutions at the Village Level," Proceedings of the German Development Economics Conference, Göttingen 2007 9, Verein für Socialpolitik, Research Committee Development Economics.
    13. Roberto Ricciuti & Antonio Savoia & Kunal Sen, 2019. "What determines administrative capacity in developing countries?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(5), pages 972-998, October.
    14. Felbermayr, Gabriel & Gröschl, Jasmin, 2013. "Natural disasters and the effect of trade on income: A new panel IV approach," European Economic Review, Elsevier, vol. 58(C), pages 18-30.
    15. Di Liberto, Adriana & Sideri, Marco, 2015. "Past dominations, current institutions and the Italian regional economic performance," European Journal of Political Economy, Elsevier, vol. 38(C), pages 12-41.
    16. Abdoul’ Mijiyawa, 2013. "Determinants of property rights institutions: survey of literature and new evidence," Economics of Governance, Springer, vol. 14(2), pages 127-183, May.
    17. James Dzansi, 2013. "Do remittance inflows promote manufacturing growth?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(1), pages 89-111, August.
    18. Claudia R. Williamson & Carrie B. Kerekes, 2011. "Securing Private Property: Formal versus Informal Institutions," Journal of Law and Economics, University of Chicago Press, vol. 54(3), pages 537-572.
    19. Luciano Nakabashi & Ana Elisa Gonçalves Pereira & Adolfo Sachsida, 2013. "Institutions and growth: a developing country case study," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 40(5), pages 614-634, October.
    20. Stimpfle, Alexander & Stadelmann, David, 2015. "The Impact of Fundamental Development Factors on Different Income Groups: International Evidence," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113128, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sls:resrep:1105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CSLS The email address of this maintainer does not seem to be valid anymore. Please ask CSLS to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/cslssca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.