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The Puzzling Effects of Delaying Schooling on Canadian Wages

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  • Ana M. Ferrer
  • Alicia Menendez

Abstract

We compare the returns on education for graduates of postsecondary institutions who delayed their tertiary education for some time and those who proceeded with no delays. Using a unique survey that collects information on a representative cohort of graduates, we are able to estimate the effects of delaying school among successful graduates abstracting from specific macroeconomic conditions at the time of graduation. We show that graduates who delayed their education enjoy a premium relative to graduates who completed their education with no interruptions even after considering other factors such as experience or labour market connections. These estimates are robust to the possibility of selection in the decision to delay school. The results unveil a puzzle about the returns on education that calls for further research to investigate the effect of delay on earnings.

Suggested Citation

  • Ana M. Ferrer & Alicia Menendez, 2014. "The Puzzling Effects of Delaying Schooling on Canadian Wages," Canadian Public Policy, University of Toronto Press, vol. 40(3), pages 197-208, September.
    • Handle: RePEc:cpp:issued:v:40:y:2014:i:3:p:197-208
    DOI: 10.3138/cpp.2013-001
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    Cited by:

    1. Richard Dorsett & Silvia Lui & Martin Weale, 2016. "The effect of lifelong learning on men’s wages," Empirical Economics, Springer, vol. 51(2), pages 737-762, September.
    2. Balogh, Gábor & Sipos, Norbert, 2019. "Pályakezdő közgazdászok bére a szakdiverzifikáció függvényében [Programme diversification effects on the salaries of freshly graduated economists]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 551-577.
    3. Foley, Kelly & Groes, Fane, 2016. "Field of study and the decision to delay university," CLEF Working Paper Series 4, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    4. Gaulke, Amanda P., 2022. "Returns to bachelor’s degree completion among stopouts," Economics of Education Review, Elsevier, vol. 86(C).
    5. Kelly Foley & Fane Groes, 2021. "Admissions Constraints and the Decision to Delay University," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(2), pages 478-507, April.
    6. Jacob Greenspon, 2017. "The Gap Year: An Overview of the Issues," CSLS Research Reports 2017-01, Centre for the Study of Living Standards.

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