British Columbia university graduates: Earnings over time

A new study of university graduates in British Columbia shows little support for arguments that the value of a sciences, humanities or social sciences education has declined relative to an education in applied fields. While earnings were higher in applied fields, the gap did not increase for more recent graduates. This suggests that graduates from sciences, humanities and social sciences did not get left behind by the new technology-driven economy.

The study examined the annual earnings of university graduates who obtained a bachelor's degree from universities in British Columbia from 1974 to 1996. Earnings up to 1997 were analysed.

Earnings were examined to see if they had changed for more recent graduates. Men who obtained a degree in sciences, humanities or social sciences from 1990 to 1992 earned 6.1% more, five years after graduation, than those who graduated from 1979 to 1981. For men with an applied degree in commerce or engineering, those who graduated from 1990 to 1992 earned 4.8% more than their counterparts in the earlier cohort. These differences in earnings growth were not statistically significant.

Comparing women from the same graduation cohorts, graduates with a sciences, humanities or social sciences degree earned 11.8% more five years after graduation than their counterparts in the earlier cohort; those with a degree in commerce or engineering earned 10.5% more that their counterparts in the earlier cohort.

Examining earnings ten or fifteen years after graduation also shows that earnings grew equally for university graduates from applied and academic programs. If earnings had been higher for more recent graduates with a degree in an applied field compared to the earnings of graduates from other fields, it might have signaled a shortage of applied graduates.

Like previous research, this study confirmed that graduates from applied fields do earn more than graduates from other programs. For example, ten years after graduation, men who graduated from 1984 to 1986 with commerce or engineering degrees earned $69,286 annually, compared with $55,028 for their counterparts in sciences, humanities or social sciences. However, this premium did not increase over the period.

While the number of bachelors graduates from British Columbia institutions increased steadily over the period, from 4,884 in 1974 to 10,330 in 1996, there was no shift in relative supply favouring applied or academic degree holders. In the early 1990s, 10.2% of graduates came from a commerce program, 6.0% came from engineering, 15.4% came from the humanities, 27.1% came from the social sciences, 14.1% came from sciences, and 14.4% came from teacher training. This composition was virtually unchanged since the late 1970s.

If relative earnings had increased for applied degree holders, one could have argued that the new technology driven economy favoured applied graduates. Demand for applied graduates would have pushed up the relative wage (because there was no change in relative supply). However, the stability in relative earnings among these groups suggests that demand increased equally for graduates from all fields of study.

Note: Data on university graduates came from administrative records. Data are currently available only for British Columbia graduates. Earnings include income from earnings, plus net self-employment income. Individuals graduating with bachelor's degrees were included in this study. Some of these graduates may have gone on to take masters, doctorates or other degrees. Graduates in medicine, law and other professional programs were excluded from the analysis.

The study Cohort effects in annual earnings by field of study among British Columbia university graduates (11F0019MIE2003200, free) is now available on Statistics Canada's website. From the home page, select Studies from the left side-bar, then select Browse periodicals and series (Free and for sale). Select Analytical Studies Branch.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Andrew Heisz (613-951-3748), Business and Labour Market Analysis Division.