Appendix Table 57: Simple Example of Interaction Effect Between Increased Educational Attainment and Increased Labour Market
Outcomes
Aboriginal Share
Non-Aboriginal Share
Employment Income of Employment Income of Non-
Aboriginal Aboriginal
____A_______ |
________B________ |
_________C_________ |
________D________ | |
Without High School diploma_______ |
0.5_____________ |
_____________0.2____________ |
__________20,000__________ |
__________22,000__________ |
_____E_________ |
_________F_________ |
________G_______ |
_______H_______ | |
With High School Diploma_________ |
0.5_____________ |
_____________0.8____________ |
__________30,000__________ |
__________33,000__________ |
Base Scenario 1 |
Average Employment |
25000 |
Base Scenario 1 + education |
Average Employment |
28000 |
Gain of education in case 1 3000
Base Scenario 2 |
Average Employment Income of Aboriginal |
27500 |
Base Scenario 2 + education |
Average Employment |
30800 |
Gain of education in case 2 3300
Interaction Effect:
300