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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
Attainment in 2017

Aboriginal
Employment
Rate in 2017

Average Aboriginal
Employment Income
in 2017

Effect of
Education on

Output
Annual

Growth Rate

Effect of
Education on
Labour
Productivity
Annual
Growth Rate

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-
Aboriginal Education in 2001

Level of Non-

Aboriginal
Employment

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
the Aboriginal and Non-
Aboriginal Education in 2001

Level of Non-

Aboriginal
Employment

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



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