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The Returns to Education and the Increasing Wage Gap Between Younger and Older Workers

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  • Picot, Garnett
  • Morissette, Rene
  • Kapsalis, Costa

Abstract

Using a regression decomposition approach, we find that, during the 1980s, the growth in the relative educational attainment of older workers has contributed to about one-quarter of the increase in the age-wage gap of men and women. During the 1990s, the age-wage gap increased to a much lesser extent. Changing relative educational attainment accounted for a much greater proportion of the much smaller increase in the gap: almost one-half for males and over three-quarters for women. We also find that, during the 1980s, the expected weekly wages associated with all levels of education fell for younger workers, both for men and women (from 2% to 16%, depending upon education level). Older employees, on the other hand, experienced mixed results. Expected weekly wages rose for some older workers and fell for some others.

Suggested Citation

  • 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.
    • Handle: RePEc:stc:stcp3e:1999131e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M1999131
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Picot, Garnett & Heisz, Andrew & Jackson, Andrew, 2002. "Winners and Losers in the Labour Market of the 1990s," Analytical Studies Branch Research Paper Series 2002184e, Statistics Canada, Analytical Studies Branch.
    3. 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.
    4. Andrew Heisz & Andrew Jackson & Garnett Picot, 2001. "Distributional Outcomes in Canada During the 1990s," The Review of Economic Performance and Social Progress, in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s, volume 1, Centre for the Study of Living Standards;The Institutute for Research on Public Policy.
    5. Picot, Garnett, 1998. "Le point sur l'inegalite des gains et sur la remuneration des jeunes durant les annees 90," Direction des études analytiques : documents de recherche 1998116f, Statistics Canada, Direction des études analytiques.
    6. Picot, Garnett, 1998. "What is Happening to Earnings, Inequality and Youth Wages in the 1990s?," Analytical Studies Branch Research Paper Series 1998116e, Statistics Canada, Analytical Studies Branch.
    7. Morley Gunderson & Andrew Sharpe & Steven Wald, 2000. "Youth Unemployment in Canada, 1976-1998," Canadian Public Policy, University of Toronto Press, vol. 26(s1), pages 85-100, July.
    8. Ci, Wen & Galdo, José & Voia, Marcel & Worswick, Christopher, 2013. "Does adult training benefit Canadian workers?," CLSSRN working papers clsrn_admin-2013-42, Vancouver School of Economics, revised 26 Sep 2013.

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