Higher Education Strategy Associates

Tag Archives: Statscan

April 12

Access: A Canadian Success Story

Statscan put out a very important little paper on access to post-secondary education on Monday.  It got almost zero coverage despite conclusively putting to bed a number of myths about fees and participation, so I’m going to rectify that by explaining it to y’all in minute detail.

To understand this piece, you need to know something about a neat little Statscan tool called the Longitudinal Administrative Database (LAD).  Every time someone files an income tax form for the first time, LAD randomly selects one in five of them and follows them for their entire lifetime.  If at the time someone first files a tax return they have the same address as someone who is already in the LAD (and who is the right age to have a kid submitting a tax form for the first time), one can make a link between a parent and child.  In other words, for roughly 4% of the population, LAD has data on both the individual and the parent, which allows some intergenerational analysis.  Now, because we have tax credits for post-secondary education (PSE), tax data allows us to know who went to post-secondary education and who did not (it can’t tell us what type of institution they attended, but we know that they did attend PSE).  And with LAD’s backward link to parents, it means we can measure attendance by parental income.

Got that?  Good.  Let’s begin.

The paper starts by looking at national trends in PSE participation (i.e. university and college combined) amongst 19 year-olds since 2001, by family income quintile.  Nationally, participation rates rose by just over 20%, from 52.6% to 63.8%.  They also rose for every quintile.  Even for youth the lowest income quintile, participation is now very close to 50%.

 Figure 1: PSE enrolment rates by Income Quintile, Canada 2001-2014

PSE by Income Quintile

This positive national story about rates by income quintile is somewhat offset by a more complex set of results for participation rates by region.  In the 6 eastern provinces, participation rate rose on average by 13.6 percentage points; in the four western provinces, it rose by just 2.8 percentage points (and in Saskatchewan it actually fell slightly).  The easy answer here is that it’s about the resource boom, but if that were the case, you’d expect to see a similar pattern in Newfoundland, and a difference within the west between Manitoba and the others.  In fact, neither is true: Manitoba is slightly below the western average and Newfoundland had the country’s highest PSE participation growth rate.

 Figure 2: PSE Participation rates by region, 2002-2014

PSE by region

(actually, my favourite part of figure 2 is data showing that 19 year-old Quebecers – who mostly attend free CEGEPs, have a lower part rate than 19 year-old Ontarians who pay significant fees, albeit with benefit of a good student aid system.)

But maybe the most interesting data here is with respect to the closing of the gap between the top and bottom income quintile.  Figure 3 shows the ratio of participation rates of students from the bottom quintile (Q1) to those from the top quintile (Q5), indexed to the ratio as it existed in 2001, for Canada and selected provinces.  So a larger number means Q1 students are becoming more likely to attend PSE relative to Q5s and a smaller number means they are becoming less likely.  Nationally, the gap has narrowed by about 15%, but the interesting story is actually at the provincial level.

Figure 3: Ratio of Q1 participation rates to Q5 participation rates, Canada and selected provinces, 2001-2014

Q1 to Q5 participation rates

At the top end, what we find is that Newfoundland and Ontario are the provinces where the gap between rich and poor has narrowed the most.  Given that one of these provinces has the country’s highest tuition and the other the lowest, I think we can safely rule out tuition, on its own, as a plausible independent variable (especially as Quebec, the country’s other low-tuition province, posted no change over the period in question).  At the bottom end, we have the very puzzling case of Saskatchewan, where inequality appears to have got drastically worse over the past decade or so.  And again, though it’s tempting to reach for a resource boom explanation, nothing similar happened in Alberta so that’s not an obvious culprit.

Anyways, here’s why this work is important.  For decades, the usual suspects (the Canadian Federation of Students, the Canadian Center for Policy Alternatives) have blazed with self-righteousness about the effects of higher tuition and higher debts (debt actually hasn’t increased that much in real terms since 2000, but whatever).  But it turns out there are no such effects.  Over a decade of tuition continuing to increase slowly and average debts among those who borrow of over $25,000 and it turns out not only did participation rates increase, but participation rates of the poorest quintile rose fastest of all.

And – here’s the kicker – different provincial strategies on tuition appear to have had diddly-squat to do with it.  So the entire argument the so-called progressives make in favour of lower tuition is simply out the window.  That doesn’t mean they will change their position, of course.  They will continue to talk about the need to eliminate student debt because it is creating inequality (it’s actually the reverse, but whatever).  But of course, this make the free-tuition position even sillier.  If the problem is simply student debt, then why advocate a policy in which over half your dollars go to people who have no debt?

It’s the Ontario result in particular that matters: it proves that a high-tuition/high-aid policy is compatible with a substantial widening of access.  And that’s good news for anyone who wants smart funding policies in higher education.

December 07

Two (Relatively) Good News Studies

A quick summary of two studies that came out this week which everyone should know about.

Programme for International Student Assessment (PISA)

On Tuesday, the results for the 2015 PISA tests were released.  PISA is, of course, that multi-country assessment of 15 year-olds in math, science and reading which takes place every three years and is managed by the Organization for Economic Co-operation and Development (OECD).  PISA is not a test of curriculum knowledge (in an international context that would be really tough); what it is instead is a test of how well individuals’ knowledge of reading, math and science can be applied to real-world challenges.  So the outcomes of the test can best be thought of as some sort of measure of cognitive ability in various domains.

In addition to taking the tests, students also answer questions about themselves, their study habits and their family background. Schools also provide information about the kinds of resources they have and what kind of curriculum structure they use, there is an awful lot of background information about each student who takes the test, and that permits some pretty interesting and detailed cross-national examination in the determinants of this cognitive ability.  And from this kind of analysis, the good folks at OECD have determined that government policy is best focused in four areas.

But heck, nobody wants to hear about that; what everybody wants to know is “where did we rank”?  And the answer is: pretty high.  The short version is here and the long version here, but here are the headlines: Out of the 72 countries where students took the test, Canada came 2nd in Reading, 7th in Science and 10th in Math.  If you break things down to the sub-jurisdictional level (Canada vastly oversamples compared to other countries so that it can get results at a provincial level), BC comes first in the world for reading (Singapore second, Alberta third, Quebec fourth and Ontario fifth).  In Science, Alberta and British Columbia come second and third in the world (behind only Singapore which as a country came top in every category).  In Math, the story is not quite as good, but Quebec still cracks the top three.

CMEC also has a publication out which goes into more depth at the provincial level (available here).  The short story is our four big provinces do well across the board but the little ones less so (in some cases much less so).  Worth a glance if comparing provinces rather than countries is your thing.

One final little nugget from the report: the survey taken by students asks if the students see themselves heading towards a Science-based career in the future.  In Canada, 34% said yes, the second highest of any country in the survey (after the US).  I’d like to think this will put to rest all the snarky remarks about how kids aren’t sufficiently STEM-geared these days (<cough> Ken Coates <cough>), but I’m not holding my breath.

Statscan Report on Youth Employment

Statistics Canada’s put out some interesting data youth employment by Rene Morisette on Monday.  It’s one of those half-full/half-empty stories: the youth unemployment rate is back down to 13% where it was in 1976 (and hence lower than it has been for most of the intervening 40 years), but the percentage of youth working full-time has dropped.  The tricky part of this analysis – not really covered by the paper – is that the comparison in both time periods excludes students.  That makes for a tricky comparison because there are proportionately about 3 times as many students as there were 40 years ago.  To put that another way, there are a lot fewer bright kids – that is, the kind likely to get and keep jobs – not in school now than in 1976.  So it’s not quite an apples-to-apples comparison and it’s hard to know what having more young people in school actually does to the employment rate.

Aside from data on employment rates, the report (actually a condensation of some speaking notes and graphs from a presentation made earlier this year) also includes a mishmash of other related data, from differing recent youth employment trends in oil provinces vs. non-oil provinces (short version: they’re really different) to gender differences in graduate wage premiums (bigger for women than men, which may explain participation rate differences), to trends in overall graduate wage premiums.  Intriguingly, these rose through the 80s and 90s but are now declining back to 1980 levels, though whether that is due to an increase in the supply of educated labour or reflects broader changes in the labour market such as the “Great Reversal” in the demand for cognitive skills that UBC’s David Green and others have described is a bit of a mystery.

But don’t take my word for it: have a skim through the report (available here).  Well worth a few minutes of your time.