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. PISA performance and equity
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 adult population aged 25 to 64. A large proportion of people in this age range have completed their formal education; therefore, this indicator provides information on skills and knowledge that members of a defined population possess. Data are presented by age group, indicating the distribution of educational attainment within this population. Educational attainment reflects the highest level of education successfully completed, based on the International Standard Classification of Education (ISCED) categories.1

Education helps give individuals the tools they need to participate in social and economic life and is key to the social and economic well-being of a country. The educational attainment of individuals in the labour force also influences the competitiveness of economies and the prosperity of societies. Variations in attainment over time reflect differences in access to education, and indicate the evolution of knowledge available to a society.

The distribution of educational attainment across Canada should not be considered as reflecting too closely the output of the various provincial/territorial education systems, as many other factors come into play. Among those factors, one could highlight differences in labour market and economic situations, the relative magnitude of international and interprovincial migrations, and the overall mobility of students and workers through provincial and territorial borders.

Observations

Educational attainment in Canada

In Canada, 2009 figures for highest level of education attained indicate that about half of individuals aged 25 to 64 had successfully completed a program of tertiary education. Under "tertiary education," which corresponds to college and university in Canada, the level of attainment at ISCED 5B or ISCED 5A/6 was 24% and 25%, respectively (Table A.1.1). An estimated 12% had "postsecondary non-tertiary education"; this includes certificates or diplomas from vocational schools or apprenticeship training. Just over one-quarter (26%) of people in this age range had an "upper secondary education" as their highest level of attainment; this represents the equivalent of secondary school completion. It is not surprising that the proportion with less than high school completion (ISCED 2) was low (9%), and the figure for those with Grade 8 or less (ISCED 0/1) as their highest level of education, even lower (4%). This overall portrait of the highest level of education attained, or educational attainment, among Canada's 25- to 64-year-old population in 2009, is based on data from Statistics Canada's Labour Force Survey (LFS).

Table A.1.1 Distribution of 25- to 64-year-old population, by highest level of education attained based on international classifications, Canada and jurisdictions, 2009

Completion of secondary school or higher

A large majority (88%) of Canadians aged 25 to 64 had attained at least upper secondary education in 2009 (Table A.1.2). As expected, the highest proportion of individuals who had completed their education at this stage (92%) was recorded for the youngest age group, those aged 25 to 34. Among the adults aged 35 to 44 and 45 to 54, 91% and 87%, respectively, had at least secondary school completion. The figure for those in the oldest group in the range, 55- to 64-year-olds, was 80%. Although still high, the contrast with the younger age group does indicate a gap between generations in Canada: 12 percentage points (Chart A.1.1).

Table A.1.2 Percentage of 25- to 64-year-old population that has attained at least upper secondary education, by age group, Canada and jurisdictions, 2009

Chart A.1.1 Population that has attained at least upper secondary education, by age group, 2009

Internationally, an overall comparison of educational attainment for the youngest (aged 25 to 34) and oldest (55 to 64) adult groups also reveals a higher proportion of secondary graduates among the younger generation, yet the gap is larger: 20 percentage points for the OECD average (Table A.1.2). Data from the OECD also reveal that several countries (Korea, Chile, Ireland, Greece, Portugal, Spain, Italy, Belgium, France, Australia, Finland, Turkey, Mexico, Netherlands and Slovenia), posted intergenerational differences of 20 percentage points or more in 2009, while the gap was more modest (below 10 percentage points) in countries such as Czech Republic, Switzerland, Norway, Germany and Estonia. There was little difference between the two age groups in the United States.2 The fairly modest 12-percentage-point difference in Canada indicates that relatively higher stages of attainment had already been successfully achieved by the older generations. In fact, with 88% of its 25- to 64-year-olds having attained at least secondary school graduation in 2009, Canada, along with Poland, placed fifth among OECD countries, just behind the Czech Republic and the Slovak Republic (91%), and Estonia and the United States (89%).

There were relatively small differences between provinces in the proportion of adults aged 25 to 34 with at least a secondary school diploma; figures ranged from 89% in Manitoba to 94% in British Columbia (Table A.1.2). But the gap between the 25-to-34 and 55-to-64 age groups reveals greater provincial differences. This is certainly the case in Newfoundland and Labrador, which registered a difference of 27 percentage points. The large majority of provinces recorded differences between 10 and 20 percentage points, while Alberta and British Columbia revealed differences of less than 10 percentage points (Chart A.1.1). In the territories, however, the differences between the 25-to-34 and 55-to-64 age groups were small.3

Beyond secondary school completion

There are three categories of postsecondary attainment under "tertiary education" in the ISCED classification system (see "ISCED classifications and descriptions" in Notes to readers): ISCED 5B (also known as tertiary-type B), ISCED 5A (tertiary-type A), and ISCED 6 (advanced research programs). In Canada, tertiary-type B includes non-university certificates or diplomas from community colleges, CEGEPs or schools of nursing, as well as university certificates below the bachelor's level; tertiary-type A refers to bachelor and master's degrees and other university degrees or certificates above a bachelor's degree (but below a doctorate); and advanced research programs include doctorates and post-doctoral programmes. Due to some LFS limitations, ISCED 5A and 6 cannot be disentangled in Canada and the proportion recorded for tertiary-type B programs may be somewhat overestimated (see the "Definitions, sources and methodology" for this indicator).

In Canada in 2009, half of adults aged 25 to 64 (50%) had completed some type of tertiary education (Table A.1.3). This proportion varies by age group, from 41% for 55- to 64-year-olds to 56% for the 25- to 34-year-olds and 35- to 44-year-olds, indicating a 15-percentage-point difference between generations (Chart A.1.2). The differences between the older and younger groups were fairly large in most jurisdictions, except for Alberta, Saskatchewan, Northwest Territories and Manitoba, which all recorded differences of less than 10 percentage points. There was little difference between generations in terms of tertiary attainment in Nunavut and Yukon.

One-quarter (24%) of individuals aged 25 to 64 in Canada had completed tertiary-type B programs, far greater than the average of 10% reported by the OECD (Chart A.1.3). Even if somewhat overestimated, the proportion of 25- to 64-year-olds observed for Canada nevertheless reveals the country's strength in delivering tertiary-type B programmes, one not seen in most other OECD countries. By contrast, the corresponding international figure for tertiary-type A/advanced research programmes was 21%, which compares with 25% in Canada.

Table A.1.3 Percentage of 25- to 64-year-old population that has attained tertiary education, Canada and jurisdictions, by age group, 2009

Chart A.1.2 Population that has attained at least tertiary education, by age group, 2009

Chart A.1.3 Proportion of the 25- to 64-year-old population with tertiary-type B (ISCED 5B) and tertiary-type A or advanced research programmes (ISCED 5A/6) education, 2009

Attainment at the tertiary-type B level was quite strong in the provinces and territories, ranging from 16% in Nunavut to 28% in Prince Edward Island. For tertiary-type A/advanced research programmes, the proportions ranged from 12% in Nunavut to 28% in Ontario.

Trends in educational attainment

Between 1999 and 2009, the proportion of adults aged 25 to 64 with less than secondary school completion decreased from 20% to 12% in Canada, with a slight drop from year to year (Table A.1.4; Chart A.1.4.1). Such steady declines for "below upper secondary" attainment are mirrored in the provinces as well as on average for the OECD countries.

Table A.1.4 Trends in educational attainment among 25- to 64-year-old population, by highest level of education attained, Canada and jurisdictions, 1997 to 2009

Chart A.1.4.1 Proportion of the 25- to 64-year-old population with below upper secondary education, 1999 and 2009

The proportion of 25- to 64-year-olds with upper secondary/postsecondary non-tertiary attainment in Canada declined from 40% in 1999 to 38% in 2009 (Table A.1.4). Overall, however, the 10-year trend shows little variation, with slight ups and downs for most of the provinces, except Ontario, where this proportion declined from 38% in 1999 to 33% in 2009.

There was an overall rise in the proportions of individuals aged 25 to 64 who had completed their education at one of the tertiary levels (type-B or type-A/advanced research programmes). For Canada, the proportion of individuals in this group rose 11 percentage points between 1999 and 2009: 39% to 50% (Table A.1.4; Chart A.1.4.2). The comparable OECD averages were 21% and 30%, respectively.

Chart A.1.4.2 Proportion of the 25- to 64-year-old population with tertiary education, 1999 and 2009

Definitions, sources and methodology

This indicator examines the educational attainment of different age groups among Canada's adult population aged 25 to 64. It presents a portrait of the situation in 2009, but also shows the evolution over the past decade.

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 the "ISCED classifications and descriptions" and the "Mapping to ISCED" section for the LFS in 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 not successfully completed secondary school, ISCED level 2.

The information presented for Canada on population and educational attainment is based on recent data from the Labour Force Survey (LFS), a monthly survey of approximately 54,000 households. The LFS seeks to obtain a detailed and timely picture of the population aged 15 or older throughout the country. It allows proxy reporting, meaning 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. Figures from the Organisation for Economic Co-operation and Development (OECD) are those reported by the OECD, and are drawn from OECD and Eurostat databases of the OECD, as compiled from national labour force surveys or registers.

Some limitations are encountered when using LFS data to examine and categorize educational attainment using ISCED as it is not possible to make a precise delineation between "postsecondary non-tertiary education" and "tertiary-type B education programmes." LFS data reported for the Canadian population that has attained ISCED level 5B will be somewhat overestimated because this category includes, for example, some CEGEP or college university transfer program graduates who, under the international classification standards, would have been placed in ISCED level 4.

In Statistics Canada's LFS, advanced research qualifications (doctorates), educational attainment at ISCED 6, cannot be identified separately; therefore, educational attainment in the ISCED 5A and 6 categories must be counted together.

Note: The corresponding OECD indicator is A1, To what level have adults studied?.

A2 Upper secondary graduation

Context

This indicator presents upper secondary school graduation rates. Graduation rates are often seen as a measure of student achievement. A comparison of overall rates gives some information about the extent to which school systems are succeeding in providing students with what is universally recognized as an important educational milestone. Presenting rates by sex reveals any gender differences, which can signal whether those systems are meeting the needs of both male and female students. The graduation rate of the population under 25 years of age is also presented, which is useful in assessing how education systems can help older adults obtain a high school diploma.

Upper secondary graduation is the foundation for further education, and it has become the norm for most students. Historically, males had been much more likely to graduate from secondary school; however, that pattern has been reversed for many years in Canada and almost all other OECD member countries. Whether male or female, the value of graduating from high school also extends beyond the academic qualification by giving individuals what is now widely considered the minimum requirement for entry into the labour market.

A new dimension has been added to this indicator: the adjusted successful completion of upper secondary programmes based on a synthetic cohort for public schools (in accordance with the Elementary-Secondary Education Survey [ESES] data collection). This was recently developed for Canada, as well as for its provinces and territories. To a certain extent, this indicator reveals the effectiveness of Canada's various public education systems in producing graduates within the three-year period typically covered by upper secondary education (on-time graduation).

Observations

Upper secondary graduation rates

Canada's upper secondary graduation rate was 79% in 2008, according to the most recent data available for the country's provinces and territories (Table A.2.1). The majority of other OECD member countries also reported graduation rates above 70%, and the latest OECD average (2009) was 82%. In the United States, the upper secondary graduation rate was 76%, while the rate recorded for the United Kingdom (92%) was notably higher compared with both North American countries.4 Upper secondary graduation rates for 2008 varied widely across the Canadian provinces, with figures ranging from 68% for Alberta up to 87% for Quebec. Except for Saskatchewan (81%), all western provinces, along with Ontario, presented graduation rates below Canada's national average of 79%. This was also the case in the territories, with graduation rates of 33% in Nunavut, 61% in the Northwest Territories and 75% in Yukon.

Table A.2.1 Upper secondary graduation rates, by programme destination, programme orientation and sex, Canada and jurisdictions, 2008

Table A.2.2 Successful completion of upper secondary programmes in public schools, 16- to 19-year-olds, by sex, Canada and jurisdictions, 2008

Graduation rates for the population younger than 25

In Canada, the upper secondary graduation rate for the population younger than 25 years of age was 75% in 2008 (Table A.2.1; Chart A.2.1). But high school graduation may happen past the age of 25 for a small proportion of the population. The proportion of these older graduates varied from province to province in 2008, and was largest in Quebec, Saskatchewan and the Northwest Territories. The phenomenon is fairly important in Quebec, where 10% of the upper secondary graduates obtained their diploma after the age of 25. This may relate to the large number of graduates from pre-vocational and vocational programmes reported by this province in 2008, as graduates from these programmes are generally older than those from the general programmes. Several OECD countries also had upper secondary graduation rates of around 10% for those aged 25 or older; namely, Norway (14%), New Zealand (13%), Finland (11%) and Denmark (10%).

Chart A.2.1 Upper secondary graduation rates, all ages and less than 25 years of age, 2008

Rates higher for females

In Canada, the upper secondary graduation rate for females was 83% in 2008; the rate for males, 75%—a relatively large gender gap of 8 percentage points (Table A.2.1; Chart A.2.2). According to the latest figures provided by the OECD, the comparable average international rates were 86% and 79%, respectively, revealing a female-male gap of 7 percentage points. The upper secondary graduation rates for females were higher than those for males in most OECD member countries for which comparable data were available. A few OECD countries (Germany, Japan and Korea) had relatively small gender gaps, revealing a more balanced situation.

Chart A.2.2 Upper secondary graduation rates, by sex, 2008

Without exception, the female upper secondary graduation rates exceeded those for males in the provinces and territories (Table A.2.1; Chart A.2.2). Most provinces had a female graduation rate of 80% or greater. Only Manitoba (75%), Alberta (71%) and the three territories had lower rates among women. Two provinces matched Canada's average female-male gap of 8 percentage points: New Brunswick and British Columbia. While the differences between the female and male upper secondary graduation rates were between 5 to 9 percentage points in Nova Scotia, Alberta, Newfoundland and Labrador, Ontario, Manitoba, Saskatchewan, Yukon, and Nunavut, the gender differences were 10 percentage points or more in Quebec and the Northwest Territories. The smallest percentage-point difference was in Prince Edward Island (2 percentage points).

Rates by programme

In 2008, the total upper secondary graduation rates for virtually all provinces and territories—Quebec was the exception—reflect graduations from general programmes in high schools (Table A.2.1). Quebec was the only province to report such large proportion of graduates from pre-vocational and vocational programmes, recording a rate of 13% for both sexes in 2008. The Canada-level graduation rate for these programmes (3%) was thus almost entirely determined by Quebec's unique and rather extensive vocational sector. While the female graduation rates for general programmes exceeded those for males across the entire country in 2008, Quebec's rates in the pre-vocational/vocational sector were higher for males: 15% versus 11% for females. Higher graduation rates obtained for males compared with females in the pre-vocational/vocational sector may, however, only be a reflection of gender inequalities in enrolment within such programmes. Graduates from the pre-vocational and vocational programmes in Quebec were also older: only 41% of these graduates were less than 25 years of age. This type of situation is also seen in Australia (49%), Finland (53%), New Zealand (38%) and Iceland (58%).

Successful completion of upper secondary programmes in public schools

The majority of pupils who start upper secondary education complete the programmes they enter in the three-year period typically covered by upper secondary education (i.e., on-time graduation).5 In Canada in 2008, the successful completion in public schools was 70%, slightly higher than the average of 68% for the OECD countries that were able to provide the appropriate data (Table A.2.2; Chart A.2.3). The proportion of students who completed their education in the expected time varied considerably among the provinces and territories: from 13% in Nunavut to over 75% in Prince Edward Island (78%), Nova Scotia (80%) and New Brunswick (79%). Newfoundland and Labrador, Ontario, Manitoba and British Columbia also recorded rates higher than the national average of 70%, while the reverse could be observed for Quebec,6 Alberta, Saskatchewan and the three territories.

Chart A.2.3 Successful completion of upper secondary programmes, 16- to 19-year-olds, by sex, Canada and jurisdictions, 2008

The successful completion of upper secondary programmes was generally higher for females than for their male counterparts for all Canadian provinces and territories, except Yukon (Table A.2.2; Chart A.2.3). Differences of more than 7 percentage points between the successful completion of females compared with males were recorded in Quebec (13 percentage points) and Ontario (8 percentage points). By contrast, differences of about 4 percentage points were observed in Nova Scotia, Manitoba, Alberta and Nunavut.

When compared with graduation rates for upper secondary graduation, the generally lower successful completion of upper secondary programmes seem to suggest that, for some provinces and territories in particular, the process that leads to obtaining a high school diploma takes place over a longer period of time than the three-year period used to calculate this indicator. This was the case for the Northwest Territories, where a difference of 33 percentage points between the two rates is seen for 2008, followed by Quebec (22 percentage points), Nunavut (20 percentage points), Saskatchewan (14 percentage points) and Yukon (10 percentage points) (data not shown). All other provinces and territories presented differences ranging from less than 1 percentage point in Manitoba to about 7 percentage points in Prince Edward Island. A similar methodology, but applied to real cohort data—as is done in many OECD countries—would allow calculation of the impact of student pathways over a longer period of time than the theoretical length of the study cycle.

These findings are not surprising given that, as noted earlier in this section, higher upper secondary graduation rates after the age of 25 had been observed in some of these provinces and territories in 2008: Quebec, Saskatchewan and the Northwest Territories.

Definitions, sources and methodology

This indicator presents net upper secondary graduation rates with and without duplication, according to programme destination, programme orientation, and sex. It also presents successful completion of upper secondary programmes of a proxy cohort in public schools.

Net upper secondary graduation rates

These rates are an estimation of the probability that an individual will graduate from high school during his or her lifetime, assuming that current conditions related to graduation all remain the same.7

Net upper secondary graduation rates are the sum of graduation rates by age, and the latter are obtained by dividing graduates of a specific age by the population of the corresponding specific age.8 Rates with duplication count the number of diplomas awarded in a year, while rates without duplication only count individuals who had obtained, during a given year, a diploma at this level for the first time. 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.

All data for Canada reflect the 2007/2008 school year; the OECD averages, 2008/2009. Information for Canada was drawn from the Elementary-Secondary Education Survey (ESES), an administrative survey that collects data for public educational institutions from the provincial and territorial ministries/departments of education.9 To ensure comparability with other OECD countries, Statistics Canada estimated, for all provinces and territories except Quebec (the actual data submitted by Quebec for 2007/2008 were used), the number of graduates of private schools using the most recent data available for this sector (enrolments in Grade 12 in 1999/2000). The number of private school graduates obtained this way was then added, along with the number of graduates from Indian band schools (these data were obtained from the Department of Indian and Northern Affairs Canada), to the number of public school graduates and included in the calculation of the secondary graduation rates presented.

Successful completion of upper secondary programmes in public schools

A new adjusted proxy cohort successful completion of upper secondary programmes has been developed for public schools (as per the scope of the ESES data collection) for Canada and the jurisdictions. It was calculated by dividing the number of 16- to 19-year-old (15- to 18-year-olds in Quebec) graduates in 2007/2008 by the number of Grade 10 (3e secondaire in Quebec) enrolments recorded three years earlier (i.e., in 2005/2006). This ratio has been adjusted to take into account deaths and interprovincial and international migration factors.

The adjustment factor is generated by dividing the 14- to 15-year-old population in 2005 (which represents the Grade 10 students) by the 17- to 18-year-old population in 2008 (which represents the Grade 10 students who graduated three years later). For Canada, where there is more in-migration than out-migration, the adjustment factor is below 100%. If this adjustment is not made, the inclusion of recent in-migrants who were not part of the original Grade 10 cohort would result in an overestimation of the number of graduates that were part of the original universe (the 2005 Grade 10 enrolments). This adjustment implicitly assumes that graduation rates of recent immigrants are identical to graduation rates of those in the original cohort.

Other possible flows in and out of the public school system between enrolment in Grade 10 and graduation at the end of Grade 12 may exist; for example, movement between public and private schools. Such possibilities could not be taken into consideration, however, as the appropriate data that would be needed to estimate such flows are not available at this time.

International data collection

The international figures used by the OECD are obtained from the UOE collection of statistical data on education, carried out jointly by three international organizations (UNESCO, the OECD, and Eurostat), and conducted in 2010 by the OECD.

Note: The corresponding OECD indicator is A2, How many students finish secondary education?.

A3 Tertiary graduation

Context

This indicator presents information on graduation rates for tertiary educational programmes according to the International Standard Classification of Education (ISCED) categories.10 Countries in which tertiary graduation rates are high are more likely either to have or to further develop a highly skilled workforce. This indicator relates individuals of a specific age who obtain tertiary credentials in a reference year to the population for that age (see "Definitions, sources and methodology").

For ISCED 5B and 5A programmes, total first-time graduation rates are also presented by sex and examined in terms of the contribution to these rates of graduates younger (and older) than age 30. Examining the contribution of older students (defined by the Organisation of Economic Co-operation and Development as those older than 30 years of age) to graduation rates can provide information on the adaptability of the workforce to changing economic conditions and skills requirements, as well as an indication of the varied types of students that postsecondary institutions are striving to serve and support.

As tertiary graduation rates are affected by the number of international students who graduate from these programmes, two corresponding measures are presented for each category of tertiary education; one that captures all graduates and one that excludes international graduates. International students who complete a tertiary programme can inflate, to varying degrees, their host's graduation rate as they are counted as graduates, but not as part of the population.11

Tertiary graduation rates depend on student demand for postsecondary education, access to programmes and their structure, the different requirements for graduation, and the level of qualification required in the labour market. These rates may also be influenced by economic conditions when secondary graduates choose to defer postsecondary education to take advantage of employment opportunities.

Observations

5B and 5A, first-time graduations

In Canada, the ISCED 5B graduation rate, which includes only first-time graduates, was 28.8% in 2008—the most recent available data for this sector in Canada12 (Table A.3.1; Chart A.3.1).13 This overall rate for Canada far exceeds the latest comparable average available from the Organisation for Economic Co-operation and Development (OECD) for its member countries, estimated at 10.4% for 2009.14 This wide gap clearly indicates the strength of the tertiary-type B education sector in Canada, one seen in only a few of its fellow OECD countries (Slovenia, 26.5%; Japan, 26.2%; Ireland, 25.6%; New Zealand, 24.0%). It also partly explains why Canada's first-time graduation rate for ISCED 5A (tertiary-type A)15 programmes may, at first glance, seem low in an international context. In 2008, Canada's average graduation rate for tertiary-type A was 36.9%, 2 percentage points lower than the most recent average of 38.6% registered by the OECD for 2009 (Table A.3.1; Chart A.3.2). This is not actually low, however, when taking into account the entire tertiary sector in Canada, where many postsecondary students choose to pursue tertiary-type B programmes. By contrast, in most OECD countries, students would be far less likely to have access to such programmes and would therefore pursue tertiary-type A (university) programmes. However, it is also important to note that most of the countries with relatively high graduation rates at ISCED 5B also have first-time graduation rates at ISCED 5A that are higher than both the Canada-level and OECD averages. This suggests that while tertiary graduation rates have been historically high in Canada, other countries are acting on the recognition of the importance of tertiary education.

These overall first-time graduation rates for ISCED 5B and 5A varied across the country. For tertiary-type B programmes, graduation rates were above the national average in Prince Edward Island (43.4%), Quebec (33.4%), Nova Scotia (32.4%), and Ontario (30.8%) (Table A.3.1; Chart A.3.1). In Manitoba (14.9%), the Northwest Territories (13.9%), Nunavut (13.3%), and Yukon (3.5%), graduation rates were half the average for Canada, or less.

Table A.3.1 Graduation rates in tertiary education, by programme, sex, and age, Canada and jurisdictions, 2008

Chart A.3.1 Tertiary-type B graduation rates (first-time graduation), by sex, 2008

With 54.5%, Nova Scotia had an especially high tertiary-type A rate, due in part to its large capacity relative to its population and many out-of-province students (Table A.3.1; Chart A.3.2). New Brunswick (44.4%), Ontario (42.9%), and Newfoundland and Labrador (40.3%) were the other provinces to exceed the 36.9% Canada average for ISCED 5A programmes. There are no programmes at this level in the territories,16 and figures for the remaining provinces were all below the Canadian average, with rates ranging from 26.4% in Alberta to 34.4% in Prince Edward Island.

Chart A.3.2 Tertiary-type A graduation rates (first-time graduation), by sex, 2008

Gender gaps

Overall in Canada, the estimated first time graduation rate for women in ISCED 5B programmes (34.4%) was higher than that for men (23.5%)—a rather sizeable gender gap of 11 percentage points (Table A.3.1; Chart A.3.1). The rates for tertiary-type A (45.8% for women versus 28.3% for men) reveal an even larger gap between the sexes: 18 percentage points (Chart A.3.2).17 The comparable OECD estimates for 2009 also reveal higher graduation rates for women overall. The average graduation rates for ISCED 5B programmes were 11.9% for women, compared with 9.1% for men. For ISCED 5A, the rates were 46.5% and 31.0%.

Across the provinces, the tertiary-type A graduation rates for women were, without exception, above those for men (Chart A.3.2). This was also generally the case in ISCED 5B programmes, although there were some exceptions where the graduation rates for men were higher (Prince Edward Island and Nova Scotia) or similar to those for women (New Brunswick and the Yukon) (Chart A.3.1).

Age profile of graduates

In an international context, the OECD considers graduates younger than 30 years of age to be within the typical age for tertiary graduation. In 2008, the tertiary-type B graduation rate among individuals in this age band was 22.2% for Canada as a whole (Table A.3.1). Graduation rates for the population younger than 30 thereby accounted for around three-quarters (77%) of the total graduation rate for these programmes. Conversely, this means that students who are considered to be outside the typical graduation age accounted for close to one-quarter (23%) of the total graduation rate.

Compared with the Canada average, graduates older than the typical age of graduation had a higher impact on college graduation rates in British Columbia, Quebec, Manitoba, the Northwest Territories, Saskatchewan, and Nunavut, where they accounted for over one-quarter of the total graduation rate (Table A.3.1). The largest impact was in British Columbia and Quebec; in these provinces, older graduates accounted for one-third of total graduation rates.

The proportion of graduates who completed ISCED 5A programmes outside the typical age of graduation is relatively smaller than in ISCED 5B programmes in all provinces. In Canada as a whole, graduates older than 30 accounted for 9% of the ISCED 5A graduation rate (Table A.3.1). A similar situation is observed across all the provinces, where these graduates accounted for 15% or less of ISCED 5A graduation rates.

The median age of graduates from ISCED 5A programmes only varies by about one and a half years across all provinces: from 22.2 years of age in Prince Edward Island and Nova Scotia to 23.8 years in Quebec (Table A.3.1).

Chart A.3.3 Graduation rates for ISCED 5B and 5A programmes (first-time graduation), for those younger and older than age 30, 2008

ISCED 6, Advanced research programmes

The rate of graduation from advanced research programmes was 1.2% in Canada in 2008, below the average rate of 1.5% for the OECD countries (Table A.3.1). The rates of graduation from such programmes ranged between 0.4% in Prince Edward Island to 1.6% in Quebec.

Impact of international students on graduation rates

International students are those who travelled to a country different from their own for the specific purpose of tertiary study (see the "Definitions, sources and methodology" section for this indicator). International students must be taken into consideration in the examination of graduation rates as those who complete a tertiary programme are counted as graduates but not as part of the population.

In Canada as a whole, international graduates have a smaller impact on graduation rates in ISCED 5A programmes relative to some of the other OECD countries. International graduates accounted for 7% of Canada's graduation rate at the ISCED 5A level. When international students are excluded from the Canada-wide graduation rate, the decrease in the rate is marginal, from 36.9% to 34.6%. In comparison, international students had the largest impacts on ISCED 5A graduation rates in Australia, the United Kingdom, and New Zealand, where the exclusion of international students decreases graduation rates between 9 and 15 percentage points.

Across the provinces, international students have the smallest impact on tertiary-type A graduation rates in Saskatchewan and Alberta, where the exclusion of international students decreased the total graduation rates by 1 percentage point (Table A.3.1). The biggest impacts were seen in Nova Scotia and New Brunswick, where the exclusion of international students decreased rates by 6 percentage points.

In advanced research programmes (ISCED 6), international graduates accounted for 14% of the total tertiary graduation rate in Canada. This is much smaller than some OECD countries, the United Kingdom and Switzerland for example, where international graduates represent more than 40% of the graduate output. In Canada, when international students are excluded from the counts of graduates, the adjusted rate, 1.0%, is slightly lower than the unadjusted rate (1.2%, already noted above).

Definitions, sources and methodology

This indicator presents tertiary graduation rates by programme, both including and excluding international students. For the ISCED categories 5B and 5A, overall graduation rates are also presented according to sex and for graduates below age 30. Graduation rates are calculated using the net method. This method basically amounts to summing age-specific graduation rates that are obtained by dividing graduates of a specific age by the population of the corresponding specific age.18 An individual who obtains a degree in tertiary education during the reference year is considered a graduate. Graduation rates adjusted for international students correspond to these calculations but exclude international students.

International students are those who, for the specific purpose of pursuing their education, go to a country other than their country of residence or the country in which they were previously educated. These students may be defined on the basis of either the country of which they were permanent residents or the country in which they were previously educated (regardless of their nationality). In Canada, this concept includes students who are not Canadian citizens and who do not hold a permanent residency permit in Canada.

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 population estimates for the appropriate year.

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. For ISCED 5B, the number of first college/technical CEGEP diplomas and university certificates or diplomas below bachelor was estimated by subtracting from the total number of this type of programme graduates during the reference year an estimate of the number of students for whom the diploma or certificate obtained was a second credential within this ISCED level. The same logic applies to ISCED 5A, where in order 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 particular ISCED level. Both estimates were developed on the basis of the cohort of graduates interviewed in Statistics Canada's 2007 National Graduates Survey (NGS) (class of 2005).

Data for Canada are presented for the 2008 calendar year, based on the most recent data available through the Postsecondary Student Information System (PSIS). PSIS is 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. As not all institutions currently provide data to PSIS, results for some jurisdictions rely in part on estimates19 submitted to the institutions for validation. International data were obtained from the UOE exercise in which the OECD collected statistical data on education in reference to the 2008/2009 academic year, the calendar year 2009 for graduation.

Note: The corresponding OECD indicator is A3, How many students finish tertiary education?.

A4  PISA performance and equity

Context

Academic achievement and other educational outcomes are affected by an interplay of factors related to students' individual characteristics and backgrounds, as well as classroom, school, and community practices and settings. This indicator examines the relationship between two aspects of students' family backgrounds—immigrant status and socio-economic status—and the reading skills of students as measured by the combined reading scale of the 2009 Programme for International Student Assessment (PISA).20

Improving the academic performance of all groups of students is embedded in the principle of fairness, and yields individual as well as societal benefits. Disparities in the development of academic skills affect the abilities of individuals to complete high school (considered to be a basic level of education in the globalized world economy), to access and persevere through higher education, to compete for jobs and secure higher paying positions, and to function fully and effectively in society. Gaps in academic skills based on social background can perpetuate histories of disadvantage and impede social mobility. Educational achievement and outcomes also affect health disparities between groups of people and levels of cohesion in a society, characterized by trust between individuals and groups, and a sense of belonging to the broader society.

An important concern for any education system is the extent to which it serves the entire student population. Striving to ensure that all youth develop to their full innate potential regardless of their societal backgrounds is a fundamental principle of public education in Canada. However, family background affects learning in a variety of ways, both within and outside of the classroom, through mechanisms such as parenting skills and early childhood experiences. The role of broader social policy and its influence on achievement and other education gaps across social groups must thereby also be considered.

Observations

Socio-economic background

In the Programme for International Student Assessment (PISA), socio-economic status is measured by the Index of Economic, Social and Cultural Status (ESCS). This index was constructed based on information provided by the representative sample of 15-year-old students who participated in the PISA components on parental occupations, parental education, and a variety of home possessions.

With a mean index value of 0.50 (i.e., half a standard deviation higher than the OECD average), 15-year-old students in Canada were higher21 on the ESCS index than students across the OECD member countries in general, indicating that students in Canada are relatively better off than students in other OECD countries on average (Table A.4.1). Only students in Iceland scored higher than Canada on this index (0.72). In fact, Canada scored higher than the OECD average in all quarters of the index, meaning that at each level of socio-economic status, Canadian 15-year-olds are better off materially than those in other OECD countries in general.22

Provincially, the average value on the overall ESCS index varied between 0.26 in Newfoundland and Labrador and 0.61 in Alberta (Table A.4.1). The average value on the ESCS was significantly lower than the Canadian average in Newfoundland and Labrador (0.26), New Brunswick (0.31), Manitoba (0.33), Prince Edward Island (0.36), and Quebec (0.39).

In Canada as a whole, in all provinces, and among OECD member countries in general, reading achievement increased, on average, with increased levels of socio-economic status as measured by the quarters of the ESCS (Table A.4.1). Examining the change in reading scores per unit change in the socio-economic (ESCS) index provides an indication of the average association between reading performance and socio-economic background. In Canada, for every 1-point increase in the ESCS index, reading performance increased on average by 32 scale points, corresponding to a little less than a one school-year gap in performance (Table A.4.1; Chart A.4.1).23 A similar situation in terms of the magnitude of this relationship is observed across the provinces.

Compared with OECD member countries in general, the average performance between more and less advantaged students is more moderate in Canada as evidenced by the fact that across OECD member countries, every unit increase in the ESCS index is associated with a 38 score increase in reading performance (Table A.4.1; Chart A.4.1).

Table A.4.1 Programme for International Student Assessment (PISA) Index of Economic, Social and Cultural Status and its relationship with student performance on the PISA combined reading scale, Canada and provinces, 2009

Chart A.4.1 Average score point difference in PISA reading performance associated with one unit increase in the PISA Index of Economic, Social and Cultural Status, 2009

The concept of explained variance in student performance is a measure used in this indicator to examine another dimension of the relationship between students' socio-economic status and reading performance. This concept measures the strength of the relationship between socio-economic status and reading scores. A weaker relationship, for example, may reflect the education system's ability to mitigate disadvantages experienced by students from families with lower socio-economic status. This indicates that even though lower socio-economic background impacts reading performance, it is not the only factor to do so.

In Canada overall, only 8.6% of the total variance in student's reading performance is accounted for by the PISA Index of Economic, Social and Cultural Status (Table A.4.1; Chart A.4.2). Like the measure of association discussed above, this indicates the moderate relationship that exists between socio-economic status and reading performance in Canada. Across the provinces, the association was also weak and it ranged narrowly from between 5.6% to 5.8% in Nova Scotia, British Columbia, and Saskatchewan, to 9.5% in New Brunswick. The relationship between socio-economic status and reading performance is stronger across the OECD countries in general, where it explained 14.0% of this relationship.

Table A.4.2 Percentage of students by immigrant status and their performance on the Programme for International Student Assessment (PISA) combined reading scale, Canada and provinces, 2009

Chart A.4.2 Percentage of variance in student performance in PISA reading explained by PISA Index of Economic, Social and Cultural Status, 2009

Immigrant status

Students with immigrant backgrounds accounted for a larger share of the 15-year-old student population in Canada than in OECD member countries in general. The student background information collected by PISA indicates that close to one-quarter (24.4%) of 15-year-old students in Canada in 2009 had immigrant backgrounds: 10.7% of them were born outside of Canada and 13.7% were born in Canada to immigrant parents (Table A.4.2). This is a relatively large proportion of students with immigrant backgrounds compared with the OECD average of 10.7%. Across the 34 OECD member countries, students with an immigrant background accounted for 20% or more of all students in four other countries: Luxembourg (40.2%), Australia (23.2%), New Zealand (24.7%), and Switzerland (23.5%). This figure was rather close to the 20% mark in two countries: Israel (19.7%), and the United States (19.5%).

Across the provinces, the proportion of students with immigrant backgrounds varied greatly. In British Columbia (34.7%) and Ontario (32.7%), close to one-third of 15-year-old students had immigrant backgrounds; whereas in each of the Atlantic provinces, 5% or fewer were from an immigrant background (Table A.4.2).

On average, there was no statistically significant difference between the reading performance of Canadian students with an immigrant background, whether or not they were first- or second-generation immigrants, and the performance of non-immigrant students.24 Similarly, there were no performance differences on average between second- and first-generation immigrants. While second-generation students were born in Canada and would have gone through the education systems in Canada, first-generation students may have received part of their education outside of Canada. In terms of the actual reading scores on the PISA assessment, non-immigrant students scored an average of 528 score points, second-generation immigrants scored 522, and first-generation immigrants, 520 (Table A.4.2; Chart A.4.3).

This situation in Canada is more favourable than that across the OECD member countries in general, where students without an immigrant background outperformed students with an immigrant background. On average across OECD countries, non-immigrant 15-year-olds outperformed second-generation immigrant students by 33 points and first-generation immigrant students by 52 points. However, like in Canada, this is not the situation in all OECD countries. Among those countries where 20% or more of 15-year-olds were immigrants (indicated above), second-generation students outperformed non-immigrant students in Australia and Israel, and there were no differences between first-generation students and non-immigrant students in Australia and New Zealand. The OECD indicates that country comparisons of the performance of immigrant and non-immigrant students reflect a multitude of factors including integration policies and programs at the jurisdictional and school system levels, immigration policies and selection criteria, and differences in the socio-economic, linguistic, and cultural backgrounds of immigrants.

In most provinces, there were no differences in the reading skills of immigrant and non-immigrant students as measured on the PISA reading scale. In Quebec, non-immigrant students performed significantly better than first- and second-generation immigrant students. In Alberta, second-generation immigrants performed better than non-immigrant students.

Chart A.4.3 Average PISA reading performance by immigrant status, 2009

Definitions, sources and methodology

This indicator examines how two aspects of students' family backgrounds—socio-economic status and immigrant status—are related to the reading ability of Canadian youth as measured by the 2009 Programme for International Student Assessment (PISA).

In 2009, PISA was administered in 65 countries and economies, including Canada and all other OECD member countries. In Canada, approximately 23,000 students from about 1,000 schools participated in the 10 provinces. In PISA, information on students' backgrounds was obtained from their answers to a 30-minute questionnaire that covered topics such as education background, family and home situation, reading activities, and school characteristics.

Socio-economic status in PISA is represented by the Index of Economic, Social and Cultural Status (ESCS). This index captures a range of aspects of a student's family and home background that combines information on parent's education, occupations, and home possessions. The index was derived from the following variables: the international socio-economic index of occupational status of the father or mother, whichever is higher; the level of education of the father or mother, whichever is higher, converted into years of schooling; and the index of home possessions, obtained by asking students whether they had a desk at which they studied at home, a room of their own, a quiet place to study, a computer to use for school work, educational software, a link to the Internet, their own calculator, classic literature, books of poetry, works of art (e.g., paintings), books to help them with their school work, a dictionary, a dishwasher, a DVD player, three other country-specific items, and the number of cellular phones, televisions, computers, cars and bathrooms at home. The rationale for choosing these variables is that socio-economic background is usually seen as being determined by occupational status, education, and wealth. As no direct measure of parental income or wealth was available from PISA, information on access to household items was used as a proxy as students would have knowledge of these items within the home. These questions were selected to construct the indices based on theoretical considerations and previous research. Structural equation modelling was used to validate the indices.

Greater values on the Index of Economic, Social and Cultural Status represent a more advantaged social background, while smaller values represent a less advantaged social background. A negative value indicates that the socio-economic status is below the OECD mean. The index is divided into quarters based on students' values on the ESCS index. Therefore students in the bottom quarter are in the lowest quarter of students in the ESCS index, and students in the top quarter are in the highest quarter of students based on their ESCS value. For each of these quarters, Table A.4.1 presents mean ESCS values and mean reading scores.

In PISA, immigrant status is defined based on three categories:

Non-immigrant students: Students who were born in the country where they were assessed by PISA or who had at least one parent born in the country (referred to in OECD as "native students");

Second-generation students: Students who were born in the country of assessment but whose parents are foreign-born;

First-generation students: Students who are foreign born.

Note: The corresponding OECD indicator is A5, Does student background affect student performance?.

A5  Labour market outcomes

Context

This indicator examines the connection between educational attainment and the labour market by looking at employment rates among the adult population aged 25 to 64. This relationship is explored by sex, and trends in employment rates by attainment are also presented. Educational attainment reflects the highest level of education successfully completed, based on the International Standard Classification of Education (ISCED) categories.25

One of the main objectives of education systems is to prepare individuals so they can participate in a knowledge-oriented economy and society. For individuals, job prospects and employment rates both generally improve with higher education.

Observations

Upper secondary graduation minimum requirement

In Canada, the overall employment rate for adults aged 25 to 64 was 75% in 2009 (Table A.5.1). This compares with a rate of 73%, on average, for the OECD countries.26 In the provinces, the overall employment rate for 25- to 64-year-olds ranged from 63% in Newfoundland and Labrador to 82% in Saskatchewan. All 2009 figures for Canada are based on data collected by the Labour Force Survey (LFS).

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 2009, the employment rate for those who had not completed upper secondary education was 55%, while the rate for upper secondary and postsecondary non-tertiary graduates was 74%, and the figure for tertiary graduates, 82% (Table A.5.2). Across the country, variability in the employment rate for the "below upper secondary" category is evident, with figures ranging from 38% in Newfoundland and Labrador to 67% in Alberta.

Employment rates by sex

The rise in employment rates seen when educational attainment is reviewed across ISCED categories occurs among both men and women, although the rates for women are consistently lower than those recorded for men. In 2009, Canada's employment rate for women aged 25 to 64 was 72%, compared with 79% for men in the same age range (Table A.5.1; Chart A.5.1). This compares with OECD averages of 65% and 81%, respectively. In Canada, the rate for women was above the national average in Manitoba (75%), Alberta (75%), Saskatchewan (78%), the Northwest Territories (77%) and Yukon (80%). With an overall employment rate of 60% for women, Newfoundland and Labrador was the only province with a rate well below the Canada and OECD (65%) averages.

Table A.5.1 Employment rates of 25- to 64-year-olds, by highest level of education attained and sex, Canada and jurisdictions, 2009

Chart A.5.1 Employment rates of 25- to 64-year-olds, by highest level of education attained and sex, 2009

In the majority of OECD countries in 2009, the difference in employment rates between the sexes was less pronounced among graduates of tertiary-type A and advanced research programmes compared with the upper secondary graduates (the OECD averages can be seen in Table A.5.1, columns 8 and 5). In Canada, a 10-percentage-point difference was observed between men and women in the upper secondary graduation category (Chart A.5.1). The male-female difference was half as large (5 percentage points) for graduates of tertiary-type A/advanced research programmes. It is also interesting to note that, at each level of educational attainment, male employment levels in Canada were lower than the corresponding OECD averages while there were no differences among female employment levels.

Postsecondary education, higher employment rates

Across Canada, as in other OECD countries, 25- to 64-year-old individuals with postsecondary education had consistently higher employment rates than those who had not graduated from secondary school. At the Canada level, the difference between the employment rate for tertiary graduates (82%) and the rate for those with less than upper secondary education (55%) was substantial in 2009: 27 percentage points (Table A.5.2; Chart A.5.2). A similar gap (28 percentage points) is seen at the international level, as indicated by the most recent OECD averages for this 25- to 64-year-old group. Among the provinces, the difference between employment rates for these two education categories ranged from 18 percentage points in Alberta to 39 in Newfoundland and Labrador.

Table A.5.2 Trends in employment rates of 25- to 64-year-olds, by highest level of education attained, Canada and jurisdictions, 1997 to 2009

Chart A.5.2 Employment rates of the 25- to 64-year-old population, by educational attainment, 2009

The relationship between educational attainment and improved employment prospects can be further explored by examining provincial data. When comparing the employment rate for those with "less than upper secondary education" (55%) against the rate for individuals in the "upper secondary and postsecondary non-tertiary" category (74%), the difference is fairly important at 19 percentage points (Table A.5.2). Provincially, the differences varied from 34 percentage points in the Northwest Territories to 13 percentage points in Alberta. At the Canada level, when the employment rate for those with tertiary completion (82%) is compared against the rate for individuals in the "upper secondary and postsecondary non-tertiary" category (74%), the gap is 8 percentage points. The differences also varied from province to province in 2009, with the largest gap (16 percentage points) noted for Newfoundland and Labrador, and the smallest ones for the western provinces (between 3 and 6 percentage points). Small gaps indicate that, in these provinces, individuals with a high school diploma, a certificate or diploma from a vocational school or with apprenticeship training are almost as likely as people with a college or university diploma to achieve a high level of employment.

The employment patterns across the provinces and territories can also be analyzed with more detailed data (Table A.5.1). Obtaining a higher level of education has not resulted in the same gains in employment rates in all provinces. In Western Canada, the gains in employment rates resulting from obtaining a "postsecondary non-tertiary" education (vocational school or apprenticeship training) are far more noticeable than the gains resulting from attaining a "tertiary-type B" education (mainly a college diploma). In the four Atlantic provinces, the situation is reversed, and the gains for the "tertiary-type B" level are more substantial in comparison with those seen for "postsecondary non-tertiary" education.

Long-term trend

Between 1997 and 2009, the variations in employment rates for 25- to 64-year-olds with different levels of educational attainment were fairly small in Canada (Table A.5.2). Nevertheless, a closer look at these variations provides insight into the relationship between the different educational attainment groups and labour market conditions. Overall in Canada, adults with less than high school completion (below upper secondary) were the most affected by less favourable labour market conditions. Over the 12-year period, the differences between the highest and lowest employment rates for this group at the start and end of the period varied by as much as 5 percentage points. At the same time, there was far less variation (around 1 percentage point) in the trend for adults with tertiary education. This pattern was similar across the provinces and territories, although the variability appeared higher in some provinces than in others. In British Columbia, Saskatchewan, Prince Edward Island, Nova Scotia and the Territories the higher variability of the employment rate over time seems to indicate a greater sensitivity to economic conditions, especially for adults with lower educational attainment.

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, overall and by sex, and provides insight into how this relationship has evolved over time. The employment rate represents the percentage of employed people in this 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 for Canada were drawn from the Labour Force Survey (LFS), a monthly survey of approximately 54,000 households. The 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. Figures from the Organisation for Economic Co-operation and Development (OECD) are those reported by the OECD, and they are extracted from the OECD and Eurostat databases compiled from national labour force surveys for the OECD member countries.

Note: The corresponding OECD indicator is A7, How does educational attainment 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 earnings from employment. Relative earnings for the population aged 25 to 64 are presented by age group, for men and women, and over time, according to the highest level of education attained. Trends in the differences in earnings of men and women are also presented; specifically, the average annual earnings of women as a percentage of those of men. Educational attainment is based on the International Standard Classification of Education (ISCED) categories.27

A comparison of earnings according to educational attainment gives individuals an idea of the potential monetary rewards associated with higher education. Major differences in earnings can clearly signal the advantages—or disadvantages—related to the attainment of different categories of education.

Observations

Earnings from employment by educational attainment

The relative earnings of Canadians aged 25 to 64 clearly indicate that mean annual earnings from employment (before tax) rise along with educational attainment. Statistics Canada's 2008 Survey of Labour and Income Dynamics (SLID) reveals the economic penalty encountered by the individuals who had not completed high school (those in the "below upper secondary" category), along with the benefits for those who had successfully completed programs at the postsecondary levels (Table A.6.1; Chart A.6.1). The most notable earnings advantage is seen among those who had graduated from university programs, shown as ISCED 5A/6 (tertiary-type A or advanced research programmes) (see the "Mapping to ISCED" table for SLID in the Notes to readerssection of the report). These graduates earned considerably more in 2008 than people at other levels of educational attainment, with earnings that were 70% higher, on average, than earnings of graduates of upper secondary or postsecondary non-tertiary programs (see the "Definitions, sources and methodology" for this indicator for an explanation of the reference group).

Table A.6.1 Relative earnings of 25- to 64-year-olds with income from employment, by highest level of education attained, age group and sex, Canada and provinces, 2008

Chart A.6.1 Relative earnings of 25- to 64-year-olds with income from employment, by highest level of education attained, Canada and OECD, 2008 (upper secondary and postsecondary non-tertiary education = 100)

The pattern seen in Canada is also evident internationally, according to recent estimates from the Organisation for Economic Co-operation and Development (OECD).28 Again, relative earnings for the working-age population rise across the categories of education, and, like their counterparts in Canada, tertiary graduates in the other OECD countries earned considerably more than upper secondary or postsecondary non-tertiary graduates in 2008. Their earnings were, on average, 53% higher (Table A.6.1). More specifically, among those who graduated from tertiary-type A or advanced research programmes, the OECD cites an earnings advantage of 63% for its member countries overall, indicating a rather high earnings premium for those who have completed this type of university education. In this case, the earnings advantage noted in Canada (70%, as previously mentioned) is even higher. However, the international earnings premiums are higher at the ISCED 5B level (mainly college credentials), where the OECD earnings premiums are double the advantage seen for Canada (23% versus 11%) (Chart A.6.1).

When earnings differentials are examined over time, the pattern of higher earnings for working-age individuals with tertiary education remained fairly stable in Canada. In 1998, the 25- to 64-year-olds in this group earned 40% more on average than those with upper secondary or postsecondary non-tertiary education, which was the same premium recorded for 2008 (Table A.6.2).

In the provinces

Across the provinces, the relative earnings among the 25- to 64-year-old population reflect the patterns seen at the Canada level; however, as expected, there are a few variations. The earnings disadvantages associated with "below upper secondary education" are apparent in all provinces, although more so in Newfoundland and Labrador, where individuals in this category earn 46% less than those who have successfully completed upper secondary or postsecondary non-tertiary programs (Table A.6.1; Chart A.6.2). In all provinces, individuals aged 25 to 64 who had successfully completed a university education (shown under ISCED 5A/6: tertiary-type A and advanced research programmes), had earnings that were notably higher than those who had completed upper secondary or postsecondary non-tertiary programs. In New Brunswick, Quebec, and Ontario individuals in this category earned, on average, between 75% and 84% more than those who had either upper secondary or postsecondary non-tertiary as their highest level of attainment—beyond the 70% for Canada overall. In Saskatchewan and Alberta, these earnings premiums for university graduates are also evident, but the differentials are the lowest across the provinces. University graduates in Saskatchewan and Alberta earned 43% and 30% more, respectively, than those who had completed upper secondary or postsecondary non-tertiary education in these provinces.

Table A.6.2 Trends in relative earnings for 25- to 64-year-olds, by highest level of education attained, Canada and provinces, 1998 to 2008

Chart A.6.2 Relative earnings of 25- to 64-year-olds with income from employment, by highest level of education attained, 2008 (upper secondary and postsecondary non-tertiary education = 100)

Men and women—differences in earnings

When trends in the differences between the earnings of men and women are examined, women—even those who had successfully completed some type of tertiary education (college or university)—have not fared as well as their male counterparts. Between 1998 and 2008, the average annual earnings29 of women as a percentage of those for men reveal that women have continued to earn much less, regardless of their level of education. Women in the "below upper secondary" educational attainment category were especially penalized over the period, earning close to 50% less, on average, than the men who had not completed high school (Table A.6.3; Chart A.6.3). Even women who had successfully completed a program at the tertiary level earned far less than the men with the same type of educational attainment. In 1998, the average annual earnings for women with tertiary education were 61% of those for men; by 2008, women's earnings were still only 63% of those for men. But, even if earnings for men are consistently higher than those for women at every level of educational attainment, the narrowing of the gap as level of education increases indicates that the monetary gains from additional education are relatively higher for women.

Table A.6.3 Trends in differences in earnings of men and women, 25- to 64-year-olds with income from employment, by highest level of education attained, Canada and provinces, 1998 to 2008

Chart A.6.3 Trends in differences in earnings of men and women aged 25 to 64 with income from employment, by highest level of educational attainment, Canada, 1998 to 2008

The figures cited in the preceding paragraph compare the average annual earnings of men and women and include all individuals with earnings from employment, whether they worked full- or part-time. When the earnings of men and women who work full-time, full-year are examined, the male-female earnings gap in Canada still exists but its magnitude decreases across all categories of educational attainment. This decrease is especially noticeable at the "below upper secondary" educational attainment category, where the earnings gap based on full-time, full-year employment is 12 percentage points lower than that measured on average earnings (data not shown). More specifically, earnings for women with this type of educational attainment were on average, 53% of those for men (Table A.6.3), while women who worked on a full-time, full-year basis earned 65% that of men (Education at a Glance 2011: OECD Indicators, Table A8.3a; not shown). At the tertiary level, women's earnings were at 70% among those who worked on a full-time, full-year basis, compared with the 63% noted in the preceding paragraph.30

Definitions, sources and methodology

This indicator focuses on the economic benefits of education by examining the relationship between educational attainment and relative earnings among the 25- to 64-year-old working-age population, by age and for each sex. It also shows how this relationship evolved between 1998 and 2008.

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, multiplied by 100.

The estimates are limited to persons with employment income during the reference period, including individuals with negative earnings, as could arise, for example, among business owners. The average for both sexes is not the simple average of the figures for males and females, but 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 can be seen 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 $47,239 in 2008. This same year, the relative earnings figure for men this same age who had tertiary education was $67,396, resulting in an index of 142 [($67,396/ $47,239) * 100)]. For women, relative earnings were $28,619 for the reference category and $42,113 for the tertiary group; an index of 147. For both sexes combined, the relative earnings were $38,781 for the reference category and $54,458 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 (147), even if the average earnings values for both sexes for both the reference group ($38,781) and the tertiary group ($54,458) fall between the figures for men ($47,239, reference category; $67,396, tertiary) and those for women ($28,619, reference category; $42,113, 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 A8, What are the earnings premiums from education?.


Notes

  1. Please see the "ISCED classifications and descriptions" section in this report's Notes to readers for brief descriptions of the ISCED categories.
  2. The international data presented in this report reflect the figures available from the OECD at the time of writing; however, the OECD may have made further final adjustments. For more detailed information on the latest international statistics, please refer to Education at a Glance 2011: OECD Indicators, available on the OECD's Web site: www.oecd.org.
  3. In the territories, caution should be exercised when interpreting the differences between age groups at a given level of educational attainment. The proportions for the different age groups are based on estimates for relatively small populations and are thus associated with larger variability.
  4. The international data presented in this report reflect the figures available from the OECD at the time of writing; however, the OECD may have made further final adjustments. For more detailed information on the latest international statistics, please refer to Education at a Glance 2011: OECD Indicators, available on the OECD's Web site: www.oecd.org.
  5. The "proxy cohort" methodology used to produce the successful completion of upper secondary programmes 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—using true cohort data when available.
  6. Given the importance of enrolment and graduation from private schools in Quebec, the results presented in this report may be underestimating the actual proportion of successful completion of upper secondary programmes in this province. In Quebec, 22% of all secondary school graduates obtain their credentials through a private school. Using enrolment and graduation estimates for this province, the successful completion of upper secondary programmes combining both public and private schools increased from 65% to 70%, slightly higher than the average of 68% for the OECD countries that were able to provide the appropriate data, and at the same level as the Canada-level average of 70%.
  7. 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.
  8. This methodology differs from the one used in the previous two editions of this report. In 2009 and 2010, this indicator was computed according to the "gross" method, which divides the number of all graduates, regardless of age, by the population at typical age of graduation (determined to be between age 17 and 18).
  9. Data on graduations from some secondary programs are not uniformly available across the provinces/territories, and general education development (GED) credentials, adult basic upgrading and education, and graduation from adult school, which take place outside regular secondary school programs, are, in most instances, not included.
  10. Please see the "ISCED classifications and descriptions" section in this report's Notes to readers for brief descriptions of the ISCED categories.
  11. Please see Indicator C1 in this report, which focuses on the relative importance of international students in the student population.
  12. This category includes students who graduated for the first time from a typical community college program, a technical CEGEP program, or those who obtained, always for the first time, an undergraduate level certificate or diploma (more details are available in this indicator's "Definitions, sources and methodology" section, as well as under "Mapping to ISCED" for the "Postsecondary Student Information System (PSIS)" in the Notes to readers section of this report).
  13. Due to early cut off dates for submission of data to the OECD, the figures for Canada presented in this report are not the same as those published in the OECD's Education at a Glance 2011: OECD Indicators. The figures presented in this report represent the most recent available.
  14. The international data presented in this report reflect the figures available from the OECD at the time of writing; however, the OECD may have made further final adjustments that could not be reflected here. For more detailed information on the latest international statistics, please refer to Education at a Glance 2011: OECD Indicators, available on the OECD's Web site: www.oecd.org.
  15. This category includes students who obtained a bachelor's degree for the first time (more details are available in this indicator's "Definitions, sources and methodology" section, as well as under "Mapping to ISCED" for the "Postsecondary Student Information System (PSIS)" in the Notes to readers section of this report).
  16. Although residents of the territories do go to other provinces to pursue university studies, they are not reflected in these graduation rates as these rates capture graduates based on their province of study.
  17. Given the differences in the number of women and men enrolled in colleges and universities in Canada, the female-male gaps seen in first-time graduation rates for tertiary-type B and tertiary-type A programmes are expected, a situation also found in a number of OECD countries.
  18. This methodology differs from the one used in the previous two editions of this report. In 2009 and 2010, this indicator was computed according to the gross method, which divides the number of graduates, regardless of age, by the typical age of graduation at a certain ISCED category.
  19. The University of Regina, in Saskatchewan, has not reported its graduates to PSIS since 2005/2006. The graduation rate for Saskatchewan was calculated using the 2004 number of graduates from the University of Regina.
  20. For an examination of a broader range of individual student and contextual variables and their relationship to reading achievement at the Canadian and provincial levels, please see the Second Report from the 2009 Programme for International Student Assessment by Statistics Canada, the Council of Ministers of Education, Canada and Human Resources and Skills Development Canada.
  21. Any differences referred to in this text indicate significant differences in a statistical sense as determined by tests of statistical comparability.
  22. Please see the "Definitions, sources, and methodology" section of this indicator for further explanation of the Index of Economic, Social and Cultural Status.
  23. The OECD provides references to assist in the interpretation of reading score gaps. In PISA, student performance in reading is described according to seven proficiency levels (Levels 1b, 1a, 2, 3, 4, 5 and 6). A difference of about 73 score points represents one proficiency level on the PISA reading scale. According to OECD analysis based on 32 OECD countries, one school year corresponds to an average of 39 score points on the PISA reading scale. Please refer to PISA 2009 Results: Overcoming Social Background: Equity in Learning Opportunities and Outcomes (Volume II), available on the OECD's Web site: www.oecd.org.
  24. Please see the "Definitions, sources and methodology" section of this indicator for definitions of these immigrant categories.
  25. Please see the "ISCED classifications and descriptions" section in this report's Notes to readers for brief descriptions of the ISCED categories.
  26. The international data presented in this report reflect the figures available from the OECD at the time of writing; however, the OECD may have made further final adjustments. For more detailed information on the latest international statistics, please refer to Education at a Glance 2011: OECD Indicators, available on the OECD's Web site: www.oecd.org.
  27. Please see the "ISCED classifications and descriptions" section in this report's Notes to readers for brief descriptions of the ISCED categories.
  28. The international data presented in this report reflect the figures available from the OECD at the time of writing; however, the OECD may have made further final adjustments. For more detailed information on the latest international statistics, please refer to Education at a Glance 2011: OECD Indicators, available on the OECD's Web site: www.oecd.org.
  29. Average annual earnings include all individuals with income, whether they worked on a full- or part-time basis.
  30. Although full-time, full-year earnings for women are still lower than those for men, the difference may result from a variety of factors; for example, a different mix of occupations with different rates of pay, a larger difference between the earnings of men and women in older age groups because of the opportunities available to women in the past, and career interruptions among women related to child rearing.