The relation between education and labour force participation of Aboriginal peoples: a simulation analysis using the Demosim population projection model

This study aims at quantifying the impact of educational attainments on the future labour force participation of Aboriginal peoples. Using Statistics Canada’s Demosim population projection model, we are able to simulate alternative scenarios of educational change and resulting effects on the future labour force until 2056. About half of the observed difference in labour force participation rates between Aboriginal peoples and the Canadian-born population belonging neither to an Aboriginal nor to a visible minority group can be attributed to educational differences. While the impact of educational improvements on the future labour force is significant, the change is found to be a slow and gradual process, as successive young school-age cohorts have yet to enter the labour market and renew the workforce.