Schooling, Vocational Training and Unemployment: The Case of Canadian Aboriginals

Abstract

Individual microdata from the 1986 Census are used to examine the impact of various levels and types of education and training on the unemployment probability of Aboriginals. Separate estimates are provided for male and female as well as on-reserve and off-reserve Aboriginals. Three primary conclusions emerge. First, the largest gains in reducing the risk of unemployment of Aboriginals can be achieved through raising elementary and secondary school completion rates. Second, the attainment of post-secondary vocational education or skill training credentials does not appear to have any significant effect on the unemployment of Aboriginal men, when compared to the possession of only a high school diploma. In contrast, Aboriginal women seem to substantially benefit from post-secondary schooling, no matter whether it is of a vocational or academic orientation. Third, the relatively high welfare dependency of Aboriginals exerts a powerful negative effect on the labor market outcomes of both Aboriginal men and women.