Study of B.C. university grads shows that while those with degrees in applied fields earn more, that gap is not increasing in the new technology-driven economy: Statistics Canada
Students who come out of university with degrees in the social sciences aren’t falling behind their high-tech counterparts when it comes to income, according to Statistics Canada.
In a study of university graduates in British Columbia, Statistics Canada said there is little support for arguments that the value of a sciences, humanities or social sciences education has declined relative to an education in applied fields.
While earnings were higher in applied fields, the gap did not increase for more recent graduates. Statistics Canada said this suggests that graduates from sciences, humanities and social sciences are not being left behind by the new technology-driven economy.
They looked at the annual earnings of graduates who obtained a bachelor’s degree from universities in B.C. between 1974 and 1996. Earnings up to 1997 were analyzed.
Earnings were examined to see if they had changed for more recent graduates. Men who obtained a degree in sciences, humanities or social sciences from 1990 to 1992 earned 6.1 per cent more, five years after graduation, than those who graduated from 1979 to 1981. For men with an applied degree in commerce or engineering, those who graduated from 1990 to 1992 earned 4.8 per cent more than their counterparts in the earlier cohort. These differences in earnings growth were not statistically significant, according to Statistics Canada.
Comparing women from the same graduation cohorts, graduates with a sciences, humanities or social sciences degree earned 11.8 per cent more five years after graduation than their counterparts in the earlier cohort while those with a degree in commerce or engineering earned 10.5 per cent more that their counterparts in the earlier cohort.
Examining earnings 10 or 15 years after graduation also shows earnings grew equally for university graduates from applied and academic programs. If earnings had been higher for more recent graduates with a degree in an applied field compared to the earnings of graduates from other fields, it might have signaled a shortage of applied graduates.
Like previous research, Statistics Canada said this study confirmed that graduates from applied fields do earn more than graduates from other programs. For example, 10 years after graduation, men who graduated from 1984 to 1986 with commerce or engineering degrees earned $69,286 annually compared with $55,028 for their counterparts in sciences, humanities or social sciences. But this premium did not increase over the period.
While the number of bachelors graduates from B.C. institutions increased steadily over the period, from 4,884 in 1974 to 10,330 in 1996, there was no shift in relative supply favouring applied or academic degree holders.
In the early 1990s, 10.2 per cent of graduates came from a commerce program, six per cent came from engineering, 15.4 per cent came from the humanities, 27.1 per cent came from the social sciences, 14.1 per cent came from sciences, and 14.4 per cent came from teacher training. This composition was virtually unchanged since the late 1970s.
If relative earnings had increased for applied degree holders, one could have argued that the new technology-driven economy favoured applied graduates. Demand for applied graduates would have pushed up the relative wage because there was no change in relative supply. But the stability in relative earnings among these groups suggests that demand increased equally for graduates from all fields of study.
In a study of university graduates in British Columbia, Statistics Canada said there is little support for arguments that the value of a sciences, humanities or social sciences education has declined relative to an education in applied fields.
While earnings were higher in applied fields, the gap did not increase for more recent graduates. Statistics Canada said this suggests that graduates from sciences, humanities and social sciences are not being left behind by the new technology-driven economy.
They looked at the annual earnings of graduates who obtained a bachelor’s degree from universities in B.C. between 1974 and 1996. Earnings up to 1997 were analyzed.
Earnings were examined to see if they had changed for more recent graduates. Men who obtained a degree in sciences, humanities or social sciences from 1990 to 1992 earned 6.1 per cent more, five years after graduation, than those who graduated from 1979 to 1981. For men with an applied degree in commerce or engineering, those who graduated from 1990 to 1992 earned 4.8 per cent more than their counterparts in the earlier cohort. These differences in earnings growth were not statistically significant, according to Statistics Canada.
Comparing women from the same graduation cohorts, graduates with a sciences, humanities or social sciences degree earned 11.8 per cent more five years after graduation than their counterparts in the earlier cohort while those with a degree in commerce or engineering earned 10.5 per cent more that their counterparts in the earlier cohort.
Examining earnings 10 or 15 years after graduation also shows earnings grew equally for university graduates from applied and academic programs. If earnings had been higher for more recent graduates with a degree in an applied field compared to the earnings of graduates from other fields, it might have signaled a shortage of applied graduates.
Like previous research, Statistics Canada said this study confirmed that graduates from applied fields do earn more than graduates from other programs. For example, 10 years after graduation, men who graduated from 1984 to 1986 with commerce or engineering degrees earned $69,286 annually compared with $55,028 for their counterparts in sciences, humanities or social sciences. But this premium did not increase over the period.
While the number of bachelors graduates from B.C. institutions increased steadily over the period, from 4,884 in 1974 to 10,330 in 1996, there was no shift in relative supply favouring applied or academic degree holders.
In the early 1990s, 10.2 per cent of graduates came from a commerce program, six per cent came from engineering, 15.4 per cent came from the humanities, 27.1 per cent came from the social sciences, 14.1 per cent came from sciences, and 14.4 per cent came from teacher training. This composition was virtually unchanged since the late 1970s.
If relative earnings had increased for applied degree holders, one could have argued that the new technology-driven economy favoured applied graduates. Demand for applied graduates would have pushed up the relative wage because there was no change in relative supply. But the stability in relative earnings among these groups suggests that demand increased equally for graduates from all fields of study.
