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Chapter A
The output of educational institutions and the impact of learning
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A1. Educational attainment of the adult population
A2. Upper secondary graduation
A3. Tertiary graduation
A4. Excellence in student achievement
A5. Labour market outcomes
A6. Economic benefits of education
A1. Educational attainment of the adult population
Context
This indicator provides a profile of the educational attainment of the population aged 25 to 64. A large proportion of people in this age range are old enough to have completed their education but are still young enough to work; therefore, this indicator provides information on the stock of knowledge available to societies and economies. Data are presented by age group, indicating the distribution of educational attainment within the population.
Education contributes to the enrichment of scientific and cultural knowledge. It also gives individuals the tools they need to participate in social and economic life. The educational attainment of people in the labour force also influences the competitiveness and prosperity of economies. Variation in attainment over time and space can also reflect differences in access to education.
Observations
In 2007, the proportion of Canadians who had attained tertiary-type A education/completed advanced research programmes was greater than that for most Organisation for Economic Co-operation and Development (OECD) countries (Table A.1.1, columns 8 and 9). In Canada, one-quarter (25%) of adults aged 25 to 64 had reached this level of educational attainment, ranking the country sixth among the OECD countries. Canada shared its position with New Zealand, but followed Norway (32%), the United States (31%), the Netherlands (29%), Iceland (26%) and Denmark (26%). In Australia, Korea, Japan, the United Kingdom, and Sweden, proportions were either 23% or 24%.
Ontario and British Columbia showed proportions that, while slightly lower than the figure observed in the United States, were above the Canadian average (Chart A.1.1). The proportions of adults aged 25 to 64 whose highest level of education attained was at the tertiary-type A or advanced research programme level and who resided in Alberta or Quebec were similar to the figures for Australia, Japan, Sweden, and the United Kingdom. The proportions of 21% in Manitoba and Nova Scotia were similar to those registered in Finland and Switzerland. With 18%, Saskatchewan, Prince Edward Island, and New Brunswick exhibited levels slightly higher than that registered in France. Newfoundland and Labrador had a proportion equal to that in Mexico and Germany, with 15% of adults aged 25 to 64 having attained this educational level.
A large majority (87%) of Canadians aged 25 to 64 had attained at least upper secondary education in 2007 (Table A.1.2.). Canada, along with the Slovak Republic, ranked third among OECD countries, just behind the Czech Republic (91%) and the United States (88%). The corresponding OECD average was 70%. It is important, however, to look at the change over time when considering the different cohorts that have completed at least upper secondary education. Overall, a comparison of education levels for the youngest (aged 25 to 34) and oldest (55 to 64) adults reveals a higher proportion of secondary graduates among the younger generation (Chart A.1.2). Finland, France, Australia, Italy, and Mexico all posted intergenerational differences in excess of 20 percentage points. The increase in the proportion of secondary graduates was somewhat more modest in countries such as Germany and Switzerland, and there was no difference in the United States. Canada, one of the countries in which the education level is already fairly high, also registered a fairly modest increase in the proportion of such graduates in 2007: a difference of 13 percentage points between the 25-to-34 cohort and the 55-to-64 cohort. Approximately 91% of adults aged 25 to 34 had attained at least upper secondary education in Canada, compared with 78% for the cohort aged 55 to 64.
Chart A.1.2 Population that has attained at least upper secondary education, by age group, 2007
There were relatively small differences between provinces in the proportion of persons aged 25 to 34 with at least one secondary school diploma; figures ranged from 87% in Manitoba to 93% in Ontario. But the gap between the 25-to-34 cohort and the 55-to-64 cohort reveals greater provincial differences (Chart A.1.2). This is certainly the case in Newfoundland and Labrador and in New Brunswick, which both registered a difference of more than 20 percentage points. Differences of less than 10 percentage points between the two age groups were observed in Alberta and British Columbia.
Concerning the proportion of the population that has attained tertiary-type A education/advanced research programmes as its highest level of education, the relative position occupied by Canada varies depending on the cohort observed. The data in Table A.1.3 suggest that if the trend were to continue, Canada would, in the course of generational renewal, lose ground over time in relation to other countries, based on the proportion of individuals between 25 and 64 years of age with tertiary-type A education/advanced research programme attainment. Canada ranks fourth among OECD countries in the proportion of adults in the 55-to-64 cohort (21%) with such an educational level (column 10). However, for the 25-to-34 cohort, Canada (29%) shared 12th place with Japan and the United Kingdom, and was behind Norway (41%), The Netherlands (35%), Korea (34%), New Zealand (33%), Denmark (32%), Finland (32%), Sweden (31%), the United States (31%), Australia (31%), Ireland (30%) and Poland (30%) (column 7).
Table A.1.3 Percentage of population that has attained tertiary education, by age group, 2007
Similar to what is observed for persons aged 25 to 34 with attainment of at least upper secondary education, the proportion of adults in this cohort with tertiary-type A or advanced research programme attainment showed little variation by province in 2007 (from 24% in Newfoundland and Labrador, Prince Edward Island, and New Brunswick to 28% in Nova Scotia, Quebec, and British Columbia). Saskatchewan and Ontario were the exceptions to this rule with 21% and 33%, respectively. Some provinces registered relatively large inter-cohort differences with respect to this type of education (Chart A.1.3). In both Newfoundland and Labrador and Nova Scotia, the gap between the 25-to-34 and 55-to-64 age groups was more than 10 percentage points. Differences of 5 percentage points or less are observed in Saskatchewan, Alberta, and British Columbia.
Chart A.1.3 Population that has attained at least tertiary-type A education, by age group, 2007
Definitions, sources and methodology
This indicator examines the educational attainment of different age groups. The percentage of the population represented by a given age group that has attained a particular education level is obtained by taking the number of persons in this age group who have received a diploma attesting to that level, dividing it by the total number of persons in this same age group, and then multiplying by 100.
The education level corresponds to the highest level of education an individual has attained. The designation of the different levels of schooling is based on the International Standard Classification of Education (ISCED-97) (see "Notes to readers"). An individual must have successfully completed a programme at a given ISCED level to be considered as having attained that level of education. An individual who has not successfully completed a programme is assigned the preceding education level. For example, a secondary school graduate is considered to have attained ISCED level 3; a student who has dropped out, ISCED level 2.
The data on population and education level are drawn from the databases of the OECD and Eurostat, compiled from national labour force surveys. In Canada, the source is the Labour Force Survey (LFS), a monthly survey of approximately 50,000 households. It seeks to obtain a detailed and timely picture of the labour force throughout the country. The LFS allows proxy reporting, which means that information on the entire household can be collected from a single member of the household. In all, this type of reporting accounts for approximately 65% of all information collected.
LFS data on education levels do not lend themselves to making a precise delineation between "postsecondary non-tertiary education" and "tertiary-type B education programmes" (see "Notes to readers"). Thus, data reported for the population that has attained ISCED level 5B are overestimated, essentially because, owing to limitations of the LFS, the category includes some graduates who would normally be placed in different ISCED levels.
Note: The corresponding OECD indicator is A1, To what level have adults studied?.
A2. Upper secondary graduation
Context
This indicator presents rates of graduation from secondary school. This is a central component of assessing the performance of the education systems, and it is also often seen as an indicator of access to education. More indirectly, it is considered a measure of student achievement. A comparison of secondary graduation rates shows the extent to which school systems succeed in helping students attain what is universally recognized as an important educational milestone.
Upper secondary graduation serves as a base for further education, but it also prepares students for direct entry into the labour market. With the increase in the level of qualifications in OECD countries, secondary school graduation is currently, in terms of qualification, the minimum requirement that young people must have to successfully enter working life. It is a valuable academic qualification, since young people who leave school without obtaining their diploma generally have more difficulty finding a job.
Graduation rates are influenced by a number of factors, such as the conditions for graduation and in- and out-migration. They can also be affected by economic conditions. For example, a robust labour market that offers many opportunities can attract young people who have passed the age of compulsory school attendance but have not yet completed their secondary education. However, in a sluggish market, young people who expect to have difficulty finding a job are sometimes more inclined to complete their secondary education.
Observations
Upper secondary graduation is becoming the norm in most OECD countries, since it largely represents the minimum requirement with respect to qualification for more advanced education or entry into the labour market. In 22 of the 25 OECD countries with comparable data, the upper secondary graduation rate exceeded 70% (Table A.2.1, column 1). Although Canada is part of this group with a rate of 78%, this figure is nevertheless 4 percentage points below the OECD average of 82% (Chart A.2.1). Canada, along with the United States (78%), placed 17th among the OECD countries. Luxembourg (75%), New Zealand (74%), Spain (74%), Sweden (74%), Portugal (65%), Turkey (58%) and Mexico (43%) had rates below that of Canada. Upper secondary graduation rates varied greatly from one province or territory to another, from 91% in Quebec to 28% in Nunavut.
Chart A.2.1 Upper secondary graduation rates, 2007
Upper secondary graduation rates for females were higher than those for males in 23 of the 25 OECD countries (Table A.2.1, columns 3 and 2, respectively). Exceptions to this pattern were Switzerland and Turkey, where rates for males were higher. In Canada, the rate for females was 83%; the rate for males, 74%—a relatively large gender gap of 9 percentage points. Germany, the United States, and Japan all had male-female differences of 2 percentage points or less, revealing a more desirable situation.
Upper secondary graduation rates for females were also higher than those for males in all provinces and territories. While a gap of 14 percentage points was observed in Quebec, gaps similar to that observed at the national level (9 percentage points) were registered in Ontario, Manitoba, Alberta, the Northwest Territories, and British Columbia. Smaller gaps (5 percentage points or less) were recorded for Nova Scotia, Yukon, and Prince Edward Island. Among the OECD countries for which data are comparable, only the Czech Republic (4 percentage points), Korea (3), Japan (2), the United States (1) and Germany (1) posted gaps of this size.
With an 8% rate, Canada was well below the OECD average upper secondary graduation rate (16%) for ISCED 3C long programmes (vocational education at the secondary level) (Table A.2.1, column 8). However, the Canadian rate is entirely determined by the vocational education system in Quebec, since no other province (or territory) reported such graduates in 2006. Quebec has a rather extensive vocational sector at the secondary level, yielding a vocational secondary graduation rate (39%) that suggests the sector may be comparable in size with that in Australia, Iceland, and Norway. When the concept of calculating the rate based solely on the first secondary programme completed is applied in Quebec, the influence of vocational secondary diplomas on the overall rate (Table A.2.1, column 1) is considerably diminished by the fact that 60% of vocational secondary graduates have already graduated from a general secondary programme.
Definitions, sources and methodology
This indicator addresses upper secondary graduation. It presents secondary graduation rates with and without duplication according toprogramme destination, programme orientation and sex. Rates with duplication are calculated by dividing the number of individuals who, regardless of their age, have graduated by the total population at typical age of graduation. Rates without duplication are obtained by subtracting those individuals who have already graduated from another upper secondary programme from the total number of upper secondary graduates.1 In general, a graduate of upper secondary education is considered to have successfully completed the last year of education at this level, regardless of his or her age. Graduation is often conditional on success in a final examination, but not in all countries.
The data reflect the 2006/2007 school year (the 2005/2006 school year for Canada) and are obtained from the UOE collection of statistical data on education, carried out jointly by three international organizations, United Nations Educational, Scientific and Cultural Organization (UNESCO), the OECD and Eurostat, and conducted in 2008 by the OECD. The typical age of graduation for Canada was determined to be between 17 and 18. The values used in the denominator for calculating the graduation rate are based on the average of the demographic estimates for these two ages.2
The data on graduates are drawn from the Elementary-Secondary Education Statistics Project (ESESP), an administrative survey that collects data from the provincial and territorial ministries/departments of education.3 To ensure comparability with other OECD countries, Statistics Canada estimated the number of graduates of private schools using the most recent data available for this sector (enrolments in 1999/2000). The number of private school graduates obtained in this way was then added to the number of public school graduates and included in the calculation of the secondary graduation rates presented.
Note: The corresponding OECD indicator is A2, How many students finish secondary education and access tertiary education?.
A3. Tertiary graduation
Context
This indicator presents tertiary graduation rates by sex. These rates give an idea of the pace at which education systems are producing advanced knowledge. Countries in which tertiary graduation rates are high are more likely either to have or to develop a highly educated labour force. In a knowledge-based economy, leading edge knowledge is a main source of innovation and growth and is therefore especially valuable.
Tertiary graduation rates depend on access to programmes and their structure, the different requirements for graduation, and the level of qualification required in the labour market. Graduation rates may also be influenced by economic conditions when secondary graduates choose to defer postsecondary education to take advantage of employment opportunities. Tertiary graduation rates are also affected by the flow of foreign students.
Observations
In Canada, the tertiary-type A graduation rate, which includes only individuals graduating at this ISCED level for the first time, was 31% in 2006,4 lower than the average registered in the 24 OECD countries with comparable data (39%) (Table A.3.1, column 4, and Chart A.3.1). With just under one-third of individuals (in relation to the population in the typical age cohort of 22 to 25) being such graduates, Canada ranked 20th among OECD countries, along with Switzerland. Only Hungary (29%), Germany (23%), Austria (22%) and Greece (18%) posted rates lower than Canada's.
Table A.3.1 Graduation rates in tertiary education, by programme destination, duration and sex, 2007
Chart A.3.1 Tertiary-type A graduation rates (first-time graduation), by sex, 2007
The tertiary-type A graduation rate varied greatly from one province to another (Chart A.3.1). With 51%, Nova Scotia had the highest such rate among the provinces, behind Iceland (63%) and similar to Australia (50%). Nova Scotia receives many students from out of province, which accounts for its especially high tertiary-type A graduation rate. According to Statistics Canada's National Graduates Survey (NGS) for the class of 2005, the total number of university graduates in Nova Scotia was 20% higher than the number of these graduates who resided in the province one year before the start of their programme. Apart from Alberta, where the net in-migration of graduates moving out of their own province to pursue a programme in Alberta was sizable at 4%, there was little or no variation in this regard in New Brunswick, Quebec, Ontario, and Manitoba. On the other hand, Prince Edward Island (36%), Newfoundland and Labrador (12%), Saskatchewan (10%) and British Columbia (3%) all registered net out-migration of students who graduated outside their province of residence. The tertiary-type A graduation rate in New Brunswick (43%) exceeded the average rate observed in OECD countries (39%), while Newfoundland and Labrador ranked alongside the United States with a rate of 37%. Among the remaining provinces, only Ontario exceeded the rate for Canada as a whole with 36%. Figures recorded for Manitoba, Quebec, Prince Edward Island, British Columbia, Alberta and Saskatchewan were all below the Canadian average, with rates ranging from 30% to 18%.
As shown in Table A.3.1 (columns 5 and 6), tertiary-type A graduation rates for females were higher than those for males in 22 of the 24 OECD countries for which comparable data were available. Japan and Switzerland, which both recorded more male than female graduates at this level, were exceptions. In Canada, the tertiary-type A graduation rates were 39% for females and 23% for males. Canada ranked 19th in female graduation rates at this level, below the 47% average for OECD countries and the 40% rate observed in the Czech Republic, Spain, and Hungary. Provincially, the tertiary-type A graduation rate for females was above the national average in Nova Scotia (62%), New Brunswick (56%), Newfoundland and Labrador (48%) and Ontario (44%), while it was below the national average in Quebec (38%), Alberta (31%), British Columbia (31%) and Saskatchewan (23%). Manitoba and Prince Edward Island had rates that paralleled the national average of 39%.
An analysis of the distribution of graduates by sex in Canada reveals a rather sizable gender gap. The difference between the rate for females (39%) and that for males (23%) is 16 percentage points, which means that Canada had the 13th largest gender gap for tertiary-type A graduation rates in the OECD countries (Table A.3.1, columns 5 and 6). The difference in favour of females was also apparent in all provinces in 2006, where gaps ranged from 9 percentage points in Saskatchewan to 26 in New Brunswick.
At this time, the analysis must be limited to tertiary-type A, since Canada cannot yet report data for tertiary-type B, which essentially covers programmes in community colleges and CEGEPs. However, this type of analysis can be performed for advanced research programmes. The rate of graduation from advanced research programmes was 1.0% in Canada in 2006, slightly below the average rate (1.5%) for the OECD countries (Table A.3.1, (column 10). With this rate, Canada was in 23st place among the OECD countries, along with Poland. Only Spain, Hungary, Turkey, Iceland, and Mexico, with rates of graduation from such programmes of less than 1.0%, were behind Canada.
Rates of graduation from such programmes ranged between 0.5% in Saskatchewan and 1.2% in Quebec. Prince Edward Island, Manitoba, and Newfoundland and Labrador, with 0.6%, all posted an identical rate, very close to that of New Brunswick (0.7%). The rates for Nova Scotia, British Columbia, Alberta, and Ontario were very similar to the national average of 1.0%.
Definitions, sources and methodology
This indicator presents tertiary graduation rates by programme destination, duration, and sex. For the calculation of graduation rates, the OECD prefers to use the net method, which basically amounts to summing age-specific graduation rates. For countries that cannot report in this way because they are unable to provide such detailed data, including Canada, the OECD uses the gross method. This calculation divides the number of graduates, regardless of their age, by the total population at the typical age of graduation. An individual who obtains a degree in tertiary education during the reference year is considered a graduate.
Data are presented for the 2007 calendar year (2006 for Canada) and were obtained from the UOE exercise in which the OECD collected statistical data on education in 2008. Statistics Canada has determined the typical age at tertiary-type A graduation to be between 22 and 25, and the age for obtaining a degree in advanced research programmes as between 27 and 29. The values used in the denominator for calculating graduation rates are based on the average of demographic estimates for these different age groups, based on the most recent census.
OECD graduation rates are based on the first degree and therefore exclude individuals for whom the degree just obtained is a second degree within a given ISCED level. To meet the OECD's standard definition, the number of first bachelor's degrees was estimated by subtracting from the total number of bachelor's degrees granted during the reference year an estimate of the number of students for whom the bachelor's degree obtained was a second degree within this ISCED level. This estimate was developed on the basis of the cohort of graduates interviewed in Statistics Canada's 2002 National Graduates Survey (NGS) (class of 2000). The estimation is done only for tertiary-type A programmes.
The Canadian data are from the Postsecondary Student Information System (PSIS), a census that collects data for all units in the target population, without sampling. The target population consists of Canadian public postsecondary educational institutions (universities, community colleges and vocational centres). Each institution provides Statistics Canada with data on its programmes, its students and the degrees granted.5
Note: The corresponding OECD indicator is A3, How many students finish tertiary education?.
A4. Excellence in student achievement
Context
This indicator presents results obtained as part of the Program for International Student Assessment (PISA), an instrument developed by the OECD member countries to assess students' proficiency levels and better understand what makes young people—and education systems as a whole—successful. This PISA-based indicator focuses on excellence in student achievement in science, reading, and mathematics, as assessed in 2006.
Globalization and the establishment of a knowledge-based economy have created a rising demand for knowledge and a solid foundation of skills upon which further learning can be built. Because elementary and secondary education systems play a central role in laying this base, industrialized societies devote a large portion of their budgets to education. By evaluating student performance, PISA gives governments an idea of the return on this investment.
Observations
When the average performance of 15-year-old Canadian students was compared with that of their counterparts in other countries, the Canadian students performed well in all three domains that PISA assessed in 2006.6 Among the OECD countries, Canada's average score of 534 in science was on par with the scores for Australia, Japan, the Netherlands, and New Zealand, all behind Finland's top score of 563. Canada's average scores of 527 in both reading and mathematics positioned it near the top of the OECD countries (Table A.4.1). Canada's performance in reading was similar to that of Ireland and New Zealand and, in mathematics, Canada was situated close to Australia, Belgium, Japan, New Zealand, the Netherlands, and Switzerland. In all three domains the performance of all provinces was close to or above the OECD average.
Average scores are a practical tool for comparing the performance of different groups of students, but they are also limited: they can mask performance distributions that are quite different but result in the same averages. An analysis of countries' results by proficiency level indicates that the proportion of 15-year-olds who reached the highest levels (5 for reading, or 5 and 6 combined for science/mathematics) on global scales, varied greatly from one country to another (Table A.4.1 and Chart A. 4.1). In the science domain, the proportion of top performers ranged from less than 1% in Mexico and Turkey to 21% in Finland. For reading, the figures for students who performed at the highest level ranged from less than 1% in Mexico to 22% in Korea. In mathematics, the proportions of top performers spanned from less than 1% in Mexico to 27% in Korea.
Canada stands out as having a relatively high percentage of top performers in all three domains assessed. In mathematics, 18% of the Canadian students assessed by PISA 2006 were top performers. Several other countries had high proportions of top performers in the mathematics domain: Korea, Switzerland, Finland, Belgium, and the Netherlands. Korea had the highest proportion (22%) of top performers in reading; Canada's figure for this domain was 15%. Finland and New Zealand had more top performers in science (21% and 18%, respectively) than did Canada (14%).
Although Canada's proportions of top performers indicate that the country is well placed in the community of OECD countries, the results vary by province. For science, 10 percentage points separate New Brunswick (8%) and Alberta (18%), while in reading, there is a 9-percentage-point gap between New Brunswick (7%) and British Columbia (16%). For mathematics, the proportion of top performers ranges from 11% in Prince Edward Island to 24% in Quebec (Table A.4.1).
The proportion of students ranked at level 5 or above varied considerably according to sex, and across countries (Table A.4.2). The proportion of top-performing boys was generally higher than the proportion of top-performing girls in OECD countries for the science and mathematics domains. The gap between the sexes is usually larger in mathematics than in science. The situation is reversed in reading, however, where there were proportionally more top-performing girls (11%) than boys (6%) in the OECD countries overall. In Canada, the proportion of students reaching at least level 5 stands at 16% for males, compared with 13% for females in science, at 21% versus 15% in mathematics, and 11% versus 18% in reading.
Definitions, sources and methodology
This indicator presents results obtained in 2006 as part of PISA, a collective effort of the OECD member countries (and several other countries) that regularly assesses, through standard international tests, students' proficiency levels in three major domains: science, reading, and mathematics. It presents the average scores obtained by the 15-year-old participants in each of the three domains, and focuses on comparisons in the proportion of students who meet the criteria for top performance. Differences between the sexes are also explored.
Scores were grouped according to the proficiency levels that corresponded to students' ability to carry out groups of tasks of increasing difficulty. In science and mathematics, six proficiency levels were identified; in reading, five. This PISA-based indicator focuses on students who obtained scores that placed them at the highest levels (5, or 5 and 6 combined, depending on the domain). In science, this means that students must achieve a minimum score of 633 to reach level 5, and at least 708 for level 6. In reading, a minimum score of 626 is required for level 5. In mathematics, a minimum score of 607 is required for proficiency level 5; 669 is needed for level 6.
The target population studied comprises students who were 15 years old7 at the beginning of the PISA assessment period and who were registered in a secondary school, either full or part time. In Canada, this population includes students who were attending school in 1 of the 10 provinces; the territories have not participated in PISA to date. Students who attended schools located on Indian reserves were excluded, as were students of schools for those with severe learning disabilities, schools for blind and deaf students, and students who were being home schooled.
Note: The corresponding OECD indicator is A4, What is the profile of 15-year-old top performers in science in PISA 2006?8
A5. Labour market outcomes
Context
This indicator examines the connection between educational attainment and the labour market by looking at employment rates. It explores this relationship for males and females. Trends in employment rates by highest level of education attained are also presented.
Employment rates reflect information on both labour supply and demand. One of the main objectives of education systems is to educate citizens to enable them to participate in a knowledge-oriented economy and society. Higher employment rates among those who have higher educational attainment suggest that the education systems are successful in producing a labour force that is attractive to employers and that can meet labour market demand.
Observations
Employment rates vary according to educational attainment. In 2007, Canada's employment rate for upper secondary and postsecondary non-tertiary graduates was 77% (Table A.5.1). By comparison, the rate for tertiary graduates was 83%. For the OECD countries overall, the average figures were 76% and 85%, respectively.
In OECD countries, upper secondary graduation is considered the minimum requirement for finding a good job and being competitive in the labour market. Thus, employability, judged on the basis of the employment rate (the ratio of the number of persons with a job in a given group to the total population of that group), increases with the amount of education attained. This relationship is evident in Canada, where in 2007, the employment rate for those who had not completed upper secondary education was 57%, while the rate for upper secondary and postsecondary non-tertiary graduates was 77%, and the figure for tertiary graduates, 83% (Table A.5.1). According to the 2007 figures, the difference between the employment rate for tertiary graduates and that for individuals with less than upper secondary education was substantial across OECD countries, exceeding 30 percentage points in the Slovak Republic, Hungary, the Czech Republic, Belgium, and Germany. In Canada, the gap between the two groups was 26 percentage points, similar to that registered in the Netherlands and France and to the average for OECD countries. Only Portugal, New Zealand, Korea, and Iceland had differences of less than 15 percentage points.
The employment rate for tertiary graduates varied by province, within a rather narrow range of 8 percentage points (from 78% in Newfoundland and Labrador, to 86% in Manitoba and Saskatchewan) (Chart A.5.1). But a difference of more than 30 percentage points may be observed for individuals without upper secondary graduation (from 38% in Newfoundland and Labrador to 71% in Alberta). The difference in the employment rates between these two groups also varied from one province to another (from 14 percentage points in Alberta and 16 percentage points in Saskatchewan to 40 in Newfoundland and Labrador). The smaller difference in some provinces is largely attributable to favourable economic conditions and labour market structures that allow a greater number of less qualified people to find jobs. Such is the case in Alberta and Saskatchewan, where gaps of 14 and 16 percentage points, respectively, were observed. Like the Czech Republic, Newfoundland and Labrador registered a gap of 40 percentage points in 2007, the largest of any province. At 35 percentage points, the gap observed in New Brunswick was similar to that of Belgium and slightly higher than the figures registered in Germany (31 percentage points), Quebec (31) and Nova Scotia (30). Prince Edward Island (26 percentage points) and Ontario (25) registered differences similar to those observed for Canada as a whole and to the OECD average. The gaps observed between tertiary graduates and individuals without upper secondary graduation in Manitoba (21 percentage points) and British Columbia (19) were below the Canadian average.
Chart A.5.1 Employment rates of the 25- to 64-year-old population, by educational attainment, 2007
The difference in the employment rates for tertiary graduates and individuals without upper secondary graduation narrowed slightly in Canada between 1997 and 2007, decreasing from 29 percentage points to 26 (Table A.5.1). In the provinces, the change over time in these gaps, although slightly more volatile, was generally downward. This downward trend was most marked in Alberta and Saskatchewan, where the differences between the two rates declined, from 28 percentage points to 14, and from 22 to 16, respectively, over 10 years, indicating a clear relationship with labour market dynamics. These decreases arose from the rise in employment among those without upper secondary graduation. Although smaller, the gaps observed for the other provinces during this period also narrowed. The only exceptions were New Brunswick and British Columbia, where virtually no changes were observed between 1997 and 2007.
As shown in Table A.5.2, the variation in employment rates for females largely explains the variation in the overall employment rates. The countries with the highest employment rates in the population aged 25 to 64—Iceland, Norway, Sweden, Switzerland, New Zealand, and Denmark—are also those with the highest employment rates for females. In Canada, in 2007, the employment rate for females was 73% compared with 82% for males. Canada ranked ninth for the female employment rate, on par with New Zealand and the United Kingdom and just behind Sweden, Norway, Iceland, Denmark, Finland, and Switzerland, which recorded rates between 74% and 79%. The female employment rate was above the national average for Saskatchewan (77%), Alberta (76%) and Manitoba (75%). Prince Edward Island (72%), Quebec (71%) and British Columbia (71%) were just ahead of the Netherlands (70%) and the United States (70%), and figures for these countries mirrored those for New Brunswick (70%) and Nova Scotia (69%). With an overall employment rate of 60% for females, Newfoundland and Labrador was the only province to have a rate below the OECD average of 65%.
In the majority of OECD countries in 2007, the difference between the employment rates of males and females was less pronounced for graduates of tertiary-type A and advanced research programmes than for upper secondary graduates (Table A.5.2, columns 8 and 5). In Canada, a 12-percentage-point difference was observed between males and females in the upper secondary graduation category. The male-female difference was half as large (6 percentage points) for graduates of tertiary-type A/advanced research programmes.
Definitions, sources and methodology
This indicator, labour market outcomes, examines the relationship between educational attainment and the employment rates of 25- to 64-year-olds, by sex, and provides insight into how this relationship has evolved over a 10-year period. The employment rate represents the percentage of employed people in the working age population. To calculate the employment rate for a group with a particular level of educational attainment, the number of employed persons is divided by the total number of persons in the population aged 25 to 64 who have attained the education level and then multiplying this quotient by 100.
Persons considered to have a job are those who, during the reference week: (1) worked at least one hour in exchange for a wage or some benefit; or (2) had a job but were temporarily absent from work for various reasons (illness, accident, vacation, labour dispute, training, maternity or parental leave, etc.). The education level is measured according to the highest level of education attained.
The data are drawn from OECD and Eurostat databases compiled from national labour force surveys. In Canada, the Labour Force Survey (LFS) excludes the following from the scope of the survey: individuals who live on reserves or in other Aboriginal settlements in the provinces, full-time members of the Canadian Forces and institutional residents. The LFS employment rate is based on a monthly average from January to December.
Note: The corresponding OECD indicator is A6, How does participation in education affect participation in the labour market?.
A6. Economic benefits of education
Context
This indicator focuses on the economic benefits of education by examining the relationship between educational attainment and relative earnings, by age and sex. It also shows how this relationship evolves over time. A comparison of earnings according to education level gives individuals an idea of the profitability of their investment in education.
Variations in relative earnings (before taxes) by country reflect a number of factors, including the demand for skills in the labour market and the supply of workers at various levels of educational attainment. These variations may also reflect the strength of unions and the coverage of collective agreements, minimum wage legislation, and the relative incidence of part-time and seasonal work.
Observations
The earnings advantage associated with tertiary graduation compared with upper secondary and postsecondary non-tertiary graduation varied from 21% in New Zealand to 111% in Hungary among individuals aged 25 to 64 who received employment income during the year (Table A.6.1). Like their counterparts in all of the other OECD countries, tertiary graduates in Canada earned considerably more than secondary or postsecondary non-tertiary graduates in 2006, with earnings that were, on average, 40% higher. In the United States and the United Kingdom, the earnings advantages were 72% and 57%, respectively.
As in the OECD countries, tertiary graduates in all Canadian provinces also earned considerably more than secondary or postsecondary non-tertiary graduates in 2006. This advantage ranged from 7% in Alberta to more than 55% in Newfoundland and Labrador and Quebec (Table A.6.1). Prince Edward Island, Saskatchewan, Alberta, and British Columbia all recorded earnings advantages below the national average of 40%.
Among persons aged 25 to 64 who received employment income, the earnings advantage associated with tertiary graduation compared with secondary or postsecondary non-tertiary graduation was greater for women than for men in Germany, Australia, Austria, Canada, Korea, Spain, Ireland, Norway, the Netherlands, the United Kingdom, Switzerland and Turkey (Table A.6.1). The opposite situation is observed in the other countries. However, great caution is required when interpreting differences in relative earnings between men and women, since these differences may be influenced, in part at least, by differences between the sexes in the choice of career, occupation, and the timing of labour force participation. Another influential factor is the frequency of part-time work which, while it varies from one country to another, is generally more common among women. At the provincial level—apart from Ontario, where the earnings advantage was greater for men—the advantage registered by women was generally greater than that of their male counterparts in most Canadian provinces. Quebec was the only province where the difference between men and women was practically negligible.
Male and female tertiary graduates enjoy a substantial earnings advantage compared with men and women who have completed a secondary or postsecondary non-tertiary education, with an advantage of 42% for men and 46% for women (Table A.6.1). Women who have not completed their secondary education are especially penalized in Canada, Ireland, Portugal, Turkey, the United Kingdom, and the United States, countries that posted disadvantages of 30% or more when compared with those with secondary or postsecondary non-tertiary graduation.
Among tertiary graduates in the provinces, men from Newfoundland and Labrador (64%), Quebec (63%) and Ontario (50%) had an earnings advantage exceeding the national average of 42% (Chart A.6.1.1). In several provinces, the earnings advantage for women was above the national average of 46%: Newfoundland and Labrador (72%), Manitoba (66%), Prince Edward Island (64%), Nova Scotia (63%) and Quebec (63%) (Chart A.6.1.2).
In recent years, the advantage that tertiary graduation provides in terms of remuneration has remained relatively stable for a majority of OECD countries with comparable data (Table A.6.2). In Canada, the earnings advantage between tertiary graduates and secondary or postsecondary non-tertiary graduates remained relatively stable at around 40% between 1998 and 2006, apart from peaking at 45% and 46% in 2000 and 2001. During the same period, the earnings disadvantage between Canadians with less than upper secondary education and those with secondary or postsecondary non-tertiary education also showed quite marginal variation, around 23% between 1998 and 2006.
The advantage provided by tertiary graduation varied greatly from one province to another between 1998 and 2006 (Table A.6.2). Whereas a decrease of at least 20 percentage points was registered in Prince Edward Island (22 percentage points), Saskatchewan (20 percentage points) and Alberta (20 percentage points) during this period, substantial increases were registered in Manitoba (20 percentage points), British Columbia (10 percentage points), Quebec (9 percentage points) and Newfoundland and Labrador (8 percentage points). In the other provinces, the advantage remained relatively stable. Strong economic growth, accompanied by strong demand for workers at all education levels in Alberta and Saskatchewan, explains at least a portion of this narrowing of the earnings gaps during the period concerned. The disadvantage for individuals with less than upper secondary education increased in most provinces between 1998 and 2006. Nova Scotia, British Columbia, and Saskatchewan were the only provinces to register an earnings disadvantage in 2006 that was less than in 1998. In 2006, the earnings disadvantage in Alberta returned to its 1998 level (30%), after almost completely disappearing in 2002 and 2003 (only 6% to 8%).
Definitions, sources and methodology
This indicator focuses on the economic benefits of education by examining the relationship between educational attainment and relative earnings, by age and sex, and it shows how this relationship evolved over the 10-year period between 1997 and 2007. Relative earnings are the mean annual earnings from employment (before tax) of individuals with a certain level of educational attainment divided by the mean annual earnings from employment of individuals whose highest level of education is upper secondary or postsecondary non-tertiary level, multiplied by 100.
The estimates are limited to persons with employment income during the reference period. The average for both sexes is not the simple average of the figures for males and females, but rather an average based on the employment income of the total population. For this reason, there may be instances when the average for both sexes does not fall between the value calculated for men and that calculated for women. This phenomenon is particularly noticeable in Canada's figures for total tertiary education in Table A.6.1. In this case in particular, the relative earnings figure for men aged 25 to 64 with upper secondary or postsecondary non-tertiary education (the reference category; not shown) was $43,915 in 2006. This same year, the relative earnings figure for men this same age who had tertiary education was $62,574, resulting in an index of 142 [($62,574 / $43,915) * 100)]. For women, relative earnings were $26,679 for the reference category and $38,941 for the tertiary group; an index of 146. For both sexes combined, the relative earnings were $36,079 for the reference category and $50,554 for tertiary; index of 140. In this example, the index value for both sexes (140) is below that obtained for men (142) and that for women (146), even if the average earnings values for both sexes for both the reference group ($36,079) and the tertiary group ($50,554) fall between the figures for men ($43,915, reference category; $62,574, tertiary) and those for women ($26,679, reference category; $38,941, tertiary).
Data for Canada were obtained from the Survey of Labour and Income Dynamics (SLID), a longitudinal household survey. SLID excludes inhabitants of Yukon, the Northwest Territories and Nunavut, institutional residents and persons living on Indian reserves. Overall, these exclusions amount to less than 3% of the population.
Note: The corresponding OECD indicator is A7, What are the economic benefits of education?
Notes
- The methodology used to produce the numbers for Canada and the provinces/territories may differ from that used in a particular province/territory; consequently, the numbers in this report may differ slightly from those published by the provinces/territories.
- Upper secondary graduation rates may exceed 100% because they are calculated by dividing (1) the number of individuals who, regardless of their age, have graduated, by (2) the total population at typical age of graduation These rates should not be used to discuss upper secondary drop-outs.
- Data on graduations from some secondary programs are not uniformly available across jurisdictions, and general education diplomas (GED), adult basic upgrading and education, and graduation from adult day school, which take place outside regular secondary school programs, are, in most instances, not included.
- When the data were sent to the OECD, the most recent Canadian data available were for the 2006 reference year. These data are therefore compared with those of other countries, most of which represent the 2007 reference year.
- Since 2005/2006, graduates from the University of Regina, in Saskatchewan, are not available through PSIS, which, of course, affects the tertiary graduation rates for Saskatchewan.
- See: Human Resources and Social Development Canada, Council of Ministers of Education Canada and Statistics Canada (2007), Measuring Up: Canadian Results of the OECD PISA Study –The Performance of Canada's Youth in Science, Reading and Mathematics – PISA 2006 First Results for Canadians Aged 15, Ottawa.
- More precisely, from the age of 15 years 3 months to 16 years 2 months.
- See Organisation for Economic Co-operation and Development (2007), PISA 2006: Science Competencies for Tomorrow's World, Paris.
