Skills, education, and Canadian provincial disparity

ABSTRACT We derive synthetic time series over the 1951–2001 period of the skills of labor market entrants for the 10 Canadian provinces from the 2003 ALL survey. The effect of the skills variable on regional income is significant and substantial. Skills acquired by one extra year of schooling result...

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Bibliographic Details
Published inJournal of regional science Vol. 47; no. 5; pp. 965 - 991
Main Authors Coulombe, Serge, Tremblay, Jean-Francois
Format Journal Article
LanguageEnglish
Published Malden, USA Blackwell Publishing Inc 01.12.2007
Regional Science Research Institute
Wiley Blackwell
Blackwell Publishers Inc
SeriesJournal of Regional Science
Subjects
America
Bgi / Prodig
Bildungsertrag
Canada
Economic Conditions
Education
Educational equalization
Einkommensverteilung
Entry to working life
Human Capital
Human geography
Income
Kanada
Labor market
Literacy
Measurement
Provinces
Qualifikation
Region
Regional Development
Regional disparities
Regionale Disparität
Regionalism
Skill differentials
Skilled labor
Skills
State government
Studies
Surveys
Time series
Vocational education
Canada
Professional qualification
Human capital
Education
Educational level
Regional disparities
Per capita income
Living standard
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Summary:ABSTRACT We derive synthetic time series over the 1951–2001 period of the skills of labor market entrants for the 10 Canadian provinces from the 2003 ALL survey. The effect of the skills variable on regional income is significant and substantial. Skills acquired by one extra year of schooling result in an increase in per capita income of around 5 percent, which is close to microeconomic Mincerian estimates. Our literacy indicator does not outperform human capital indicators based on education. This contrasts sharply with recent cross‐country evidence and suggests substantial measurement error in cross‐country schooling data.
Bibliography:ark:/67375/WNG-H22N4GQ0-P
ArticleID:JORS538
istex:BF3CDC7DB4D06BCEFB4D54CEB035ADE2E2A997D1
We are grateful to Scott Murray for his encouragement to work on this research project and for his numerous insights throughout. We benefited from comments on earlier versions of the paper by Angel de la Fuente, Bob Fay, Seamus McGuinness, the economists of the Economic and Fiscal Policy Branch from Finance Canada, three anonymous referees and the editor of this journal. We thank Statistics Canada for its financial support and for its help in retrieving and aggregating data. We are grateful to Han You and Ivelina Deleva for their very valuable research assistance.
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ISSN:0022-4146
1467-9787
DOI:10.1111/j.1467-9787.2007.00538.x