The Returns to Education, and the Increasing Age Gap between Younger and Older Workers

Statistics Canada Analytical Studies Working Paper No. 131

30 Pages Posted: 20 Jan 2000

See all articles by Constantine Kapsalis

Constantine Kapsalis

Data Probe Economic Consulting Inc.

Rene Morissette

Government of Canada - Business & Labour Market Analysis Division

Garnett Picot

Statistics Canada

Date Written: March 1999

Abstract

Using a regression decomposition approach, we find that, during the 1980s, the growth in the relative educational attainment of older workers has contributed to about one-quarter of the increase in the age-wage gap of men and women. During the 1990s, the age-wage gap increased to a much lesser extent. Changing relative educational attainment accounted for a much greater proportion of the much smaller increase in the gap: almost one-half for males and over three-quarters for women. We also find that, during the 1980s, the expected weekly wages associated with all levels of education fell for younger workers, both for men and women (from 2% to 16%, depending upon education level). Older employees, on the other hand, experienced mixed results. Expected weekly wages rose for some older workers and fell for some others.

JEL Classification: J24

Suggested Citation

Kapsalis, Constantine and Morissette, Rene and Picot, Garnett, The Returns to Education, and the Increasing Age Gap between Younger and Older Workers (March 1999). Statistics Canada Analytical Studies Working Paper No. 131, Available at SSRN: https://ssrn.com/abstract=182638 or http://dx.doi.org/10.2139/ssrn.182638

Constantine Kapsalis (Contact Author)

Data Probe Economic Consulting Inc.

Rene Morissette

Government of Canada - Business & Labour Market Analysis Division ( email )

24th Floor - R.H. Coats Building
Tunney's Pasture
Ottawa, Ontario K1A 0T6
Canada
613 951-3608 (Phone)
613-951-5403 (Fax)

Garnett Picot

Statistics Canada ( email )

Ottawa, Ontario
Canada
613-951-8214 (Phone)
613-951-5403 (Fax)

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