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The Society for the Advancement of Excellence in Education provides non-partisan education research and information to policy-makers, education partners and the public. Our purpose is to encourage higher performance throughout Canada's public education system.
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What to do about Canada's Young Drop-outs
Overview
This report examines the labour market experience of young adults who do not finish high school. Data are drawn from the Organization for Economic Cooperation and Development (OECD) study of young adults with low level of education (the YALLE group). The data came from labour force surveys in 25 OECD countries and focused on persons aged 20 - 24 years who have not successfully completed high school, and who are not enrolled in education or in a work-study program.
The report presents the labour market outcomes of the YALLE group in comparison with those of other young adults with either higher levels of education, or longer experience in the labour market with the same low level of education. The objective of the study is to identify lessons for Canadian employers, educators and governments, based on the international comparison and the national pattern of labour market outcomes for young adults.
Some Key Findings
* Close to a quarter of a million young Canadians 20-24 years old (11 per cent ) have not successfully completed high school and are not pursuing further educational credentials
* Young men form the majority (61 per cent) of the YALLE group in Canada. This gender disproportion is also reflected in almost all OECD countries. Notable exceptions are countries with strong vocational preparation starting in high school (Austria, the Czech Republic, Germany and Switzerland)
* One in eight Canadian 20 to 24 year olds was born in a foreign country
* Unlike most other countries with a sizable immigrant population, Canada does not have a higher concentration of YALLE population among immigrants. This is a significant contrast with the United States, for example
* 43 per cent of young Canadian women in the YALLE group are not in the labour force; they are three times as likely to be in this situation as young men.
* The YALLE group suffers a clear disadvantage compared to groups with higher educational attainment in terms of access to jobs. The gap in the employment rate is relatively large in Canada: 22 percentage points lower than those with a high school or trade vocational diploma, 28 percentage points lower than those with a college or university diploma.
* Within the YALLE group, more immigrants are employed than is the case for the native-born. But this relationship is reversed for those with a high school diploma or trade-vocational diploma
* Education has a much greater positive impact on employment opportunities than working experience. Thus job prospects will not improve much as less-educated individuals get older, unless they get more education
* In countries which offer strong vocational programs in high school, young people have much better chances of finding a job in a skilled occupation. In Canada, however, almost all students who graduate from high school have been attending a program that is focused on preparing people for further education rather than for skilled jobs. This accounts for the greater difficulties they face when they enter the labour market with only a high school diploma and as they gain more work experience. Gains in pay and job quality that can be expected from more work experience are minimal when education is limited.
* The benefits of higher education are clearly greater for young women. Their employment rate and their earnings increase more with higher education than they do for men. This suggests that young women have a strong incentive to continue their education.
Labour market implications
* Employers should scrutinize hiring practices to ensure that young people are not driven out of school at early ages, lured to the short term attractiveness of earning money at the expense of their longer term prospects.
* Employers should signal publicly the educational requirements of their entry level jobs in order to emphasize the relevance of education to the world of work
* Overall, signals sent to workers and young people, as future workers, should be coherent and reflect the value of education to one's future well being and to society at large.
Education implications
* Extending the age of compulsory school attendance is likely to have positive effects on outcomes, for all young people, but especially for young women
* But extending compulsory education will not achieve much without a diversification of high school education to include more vocational options. This will increase the "value" of a high school diploma for immediate entry to the labour market. This will, in turn, improve the labour market prospects of many of our young people, as well as help avoid shortages in skilled trades
* Counselling is an essential ingredient when young people are making education and career choices in a highly fluid labour market environment. It can help level the playing field regarding access to information for those from more disadvantaged backgrounds, who may lack family contacts and be confused by a world of technology-driven delivery of such information
Equity implications
* Policy changes should recognize the differing needs of young men and women. For example, raising the profile and opportunities for vocational education will likely have an especially positive impact on young men. Increasing the age of mandatory school attendance has particular benefits for young women.
* Young people from lower socio-economic groups will require greater attention in early childhood and throughout primary and secondary schooling and more support from counselling. They will also benefit from more career-oriented options in high school.
Researcher's Conclusion
* It is essential for Canadians to recognize that educators, employers and governments are falling short in preparing appropriate pathways from school to work for all young people. The result is that many young Canadians are sinking into economic insecurity and even social exclusion. This is inexcusable in the 21st century, and calls for strong leaders to step forward and repair or replace the cracks in the system. Employers, educators, parents and governments are all part of the solution.
The Project on Young Adults with Low Levels of Education has received financial support from Alberta Human Resources and Employment, the Association of Colleges of Applied Arts and Technology of Ontario, SNC Lavalin Inc., Canadian Policy Research Networks, the Ontario Ministry of Education, Saskatchewan Learning, Saskatchewan Community Resources and Employment, Manitoba Advanced Education and Training, Manitoba Education, Citizenship and Youth, Nova Scotia Department of Education, Nova Scotia Department of Community Services and Prince Edward Island Department of Education.
Research Report W|30 is available free at:
http://www.cprn.org or on request at (613) 567-7500
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