University graduates enjoy strong income growth: new study

Universities Canada welcomes an insightful new study that demonstrates postsecondary graduates’ long-term earning potential, and provides young Canadians with vital information about education and career options.

Researchers from the Education Policy Research Initiative at the University of Ottawa linked institutional records with income tax data to track the earnings of graduates from 14 colleges and universities in four provinces. Their research shows strong labour market earnings patterns for bachelor’s degree graduates from 2005 through 2013.

Among their findings:

• Average annual earnings for 2005 bachelor’s graduates were $45,200 (in 2014 dollars) for the first year after graduation, and then grew by 66 per cent to reach $74,900 eight years after graduation.
• Social sciences and humanities graduates enjoy steady increases in earnings throughout their early careers, experiencing earnings growth of more than 70 percent over an eight-year period, similar to the rate of increases for engineering and science graduates.

“Young Canadians who are contemplating their futures need up-to-date information on their education options and employment outcomes,” says Paul Davidson, President of Universities Canada. “This study provides much-needed data on graduates’ income potential, and demonstrates the significant value of postsecondary education – including liberal arts degrees – with respect to long-term earnings and career success.”

Read the full report: Barista or Better? New Evidence on the Earnings of Post-Secondary Education Graduates: A Tax Linkage Approach

Read the press release: Innovative research challenges myths about post-secondary education graduates’ earnings in Canada