89
for labour productivity (Table 25a). Total Canadian output is larger by $7,764 million in 2017
and the productivity is $165 per worker higher under Scenario 10. Thus, the effect of education
on output and productivity growth represents almost half of the total effect identified when
comparing Scenario 1 and 10.
Table 26: Estimated Effect of Education of Output and Productivity in Different Situations, for the
North American Indian Population
Aboriginal Educational |
Aboriginal |
Average Aboriginal |
Effect of Output Growth Rate |
Effect of |
Half of the Gap Between the |
Level of | |||
Aboriginal and Non- |
Aboriginal |
Increase with average |
0.012 |
0.001 |
Aboriginal Education in 2001 |
Employment Rate |
wage growth | ||
is Eliminated |
in 2001 | |||
Half of the Gap Between the Aboriginal and Non- |
Level of Non- Aboriginal |
Level of Non- Aboriginal Income in 2017 |
0.015 |
0.006 |
is Eliminated |
Rates in 2001 | |||
The Complete Gap Between |
Level of | |||
the Aboriginal and Non- |
Aboriginal |
Increase with average |
0.024 |
0.003 |
Aboriginal Education in 2001 |
Employment Rate |
wage growth | ||
is Eliminated |
in 2001 | |||
The Complete Gap Between |
Level of Non- Aboriginal |
Level of Non- Aboriginal Income in 2017 |
0.029 |
0.011 |
is Eliminated |
Rates in 2001 |
Note: Effects of education refer to the increase in percentage points of the annual growth rates.
Finally, we look at the impact of education if the North American Indian population does
not improve in other aspects (employment and average employment income). To estimate this
effect, we compare Scenario 7 to Base Scenario 1. In Scenario 7, the only change over Base
Scenario 1 is an increase of North American Indian educational attainment, from their 2001 to
the 2001 level of non-Aboriginal Canadians. Compared to Base Scenario 1, the growth rate of
output under Scenario 7 is increased by 0.024 percentage points, and productivity growth is
higher by 0.003 percentage points on average each year. In 2017, the total Canadian output is
larger by $6,351 million and labour productivity gains an additional $40 per worker. The effects
of education alone, both for the complete and partial elimination of the educational attainment
gap, are summarized in Table 26.
The North American Indian population makes up a large part of the Aboriginal
population in Canada. Therefore, it is normal that the effect of education when only considering
this particular group is almost as large as for the complete Aboriginal population. Under the best
case Scenario (10), total Canadian GDP is $1,710.8 billion in 2017, increasing at an average of