Figure 14-2 Education and Employment Income, 2016
Compulsory primary and secondary education provide some minimum
human capital for all citizens. People who decide to stay on in school are
deciding to invest in acquiring further human capital. The opportunity
cost is measured by the income that you could have earned if you had
entered the labour force immediately, in addition to the direct costs for
such items as tuition fees and books and equipment. The financial return
is measured by the higher income earned when a better job is obtained.
How large is the payoff from higher education? Figure 14-2 shows how
average employment income varies with years of schooling. In 2016, the
average employment income for Canadians with a Bachelor’s degree was
more than $62 000; in contrast, someone who failed to complete high
school had an average employment income of less than $26 000. It is
worth emphasizing that the data in Figure 14-2 are averages; there are
many individuals who earn more, and many others who earn less, than
the incomes shown in the figure.
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