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

Abstract

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.