Study: Adult education and its impact on earnings

1993 to 2001

On average, workers who participated in adult education and obtained a post-secondary certificate made significant gains in wages and earnings, according to a new study.

The study documented participation patterns in adult education among workers during two periods: 1994 to 1997, and 1997 to 2000, using data from the Survey of Labour and Income Dynamics. It also examined the impact of adult education on hourly wages and annual earnings, taking into account factors such as union status, occupation, firm size, industry and province.

Around 14% of Canadian workers participated in adult education during the study period, while 8% obtained a post-secondary certificate through it.

On average, young men who went back to school and obtained a post-secondary certificate saw their wages increase 8% more than those of their counterparts who did not go back to school. The equivalent increase among young women was 10%.

However, gains differed from group to group. For example, increases among older workers, those aged 35 to 59, were restricted to those who stayed with the same employer.

Older men who stayed with the same employer while obtaining a post-secondary certificate registered gains in hourly wages that were on average 13% higher than those registered by their counterparts who did not go back to school. The gain among their female counterparts was 7%.

Both older men and women who stayed with the same employer recorded superior increases in terms of annual earnings as well.

The wages and earnings of older men and women who obtained a post-secondary certificate and switched employers did not increase faster than those of their non-participating counterparts.

Among young women who switched jobs, those who obtained post-secondary certificates registered hourly wage gains on average 15% higher than those who did not participate in adult education.

Among young men who obtained post-secondary certificates, those who switched jobs enjoyed 8% higher wage gains than their non-participating counterparts. Those who stayed on the same job received 6% higher wage gains than their non-participating counterparts.

It is unclear why older workers who obtained a diploma and switched employer did not enjoy stronger earnings growth than their counterparts who did not go back to school.

One possible explanation is that the additional earnings they might have obtained through their diploma were offset by the loss of firm-specific knowledge and skills they incurred while changing employers.

The study supported previous research and it suggested that workers with high school education or above were twice as likely to participate in adult schooling and to obtain a post-secondary certificate as those with less than a high school education.

It also showed that younger adults were more likely to participate in adult education programs. Those aged 17 to 34 were more likely to participate than their older counterparts aged 35 to 59.

Marital status was another factor, particularly among women. Single women were more likely to participate than married women, and single women were twice as likely as divorced women to obtain a post-secondary certificate.

Note: Adult schooling participants are defined as those who had previously left school and worked for at least a year before they went back to school. In the context of this study, attending school is defined as enrolment in a credit program in a formal educational institution.

Definitions, data sources and methods: survey number 3889.

The research paper Participation in Adult Schooling and its Earnings Impact in Canada (11F0019MIE2006276) is now available for free online. A short version of this study entitled Summary of: Participation in Adult Schooling and its Earnings Impact in Canada (11F0019MIE2006277, free) is also available. From our home page select Studies, then under Browse periodical and series choose Free and for sale. Under Series select Analytical Studies Branch. An abbreviated version titled "Does it pay to go back to school?" is also available today in the online edition of Perspectives on Labour and Income, Vol. 7, no. 3 (75-001-XIE, $6/$52).

Related studies from the Business and Labour Market Analysis Division can be found at Update on Analytical Studies on our Web site (11-015-XIE, free).

For further information, or to enquire about the concepts, methods or data quality of this release, contact Xuelin Zhang (613-951-4295), Business and Labour Market Analysis, or Boris Palameta (613-951-2124), Income Statistics Division.