Breaking the stigma: the economic returns to trades education in Canada

Purpose This paper aims to document early earnings trajectories based on the educational pathways travelled by students in Ontario, Canada, with a particular focus on the outcomes of those that opt for training in the trades. Design/methodology/approach This study draws on a new administrative linkage to track the trajectories of over 61,000 students from the Toronto District School Board as they enter post-secondary education (PSE) and then the labour market. It uses regression modelling to estimate early net disparities in earnings based on PSE pathways. Findings We estimate that graduates from the “Red Seal” trades earn substantially more than counterparts emerging from college or university programs, even net of demographics and academic performance measured at the high school level. Originality/value This study is the first in Ontario, Canada, to analyse early earnings trajectories across the full spectrum of post-secondary pathways available to students. It provides useful evidence-based insights that can inform future system design and reform.