New Study: International Graduates Out-Earn Canadian-Born Peers

International graduates from the University of Waterloo are achieving significantly higher earnings than their Canadian-born peers, according to a recent study by the university’s economists.

The research, which utilized data from student records, immigration filings, and tax returns, highlights a striking income disparity favoring international graduates.

Key Findings

The study found that international graduates earn an average of $57,500 in their first year post-graduation, compared to $42,000 for Canadian-born graduates, a 37% gap. Median income figures reveal an even wider margin, with international earning $56,400, almost 46% higher than the $38,700 median for Canadian-born.

Over 13 years, international graduates sustained their income lead, earning between $100,000 and $120,000, while Canadian earned around $100,000.

Reasons Behind the Earnings Gap

Economists attribute the difference to several factors:

• Demand for High-Paying Fields: Many international students specialize in engineering and technology, areas that offer lucrative job opportunities.
• Co-op Program Advantage: Waterloo’s co-op program, which integrates academic learning with practical work experience, makes its graduates highly competitive in the job market.
• Residency Outcomes: About 70% of Waterloo’s international students remain in Canada as permanent residents, a rate more than double the national average. This retention further boosts their long-term earning potential.

These findings are consistent with broader trends in Canada. A Statistics Canada report earlier this year showed that immigrants and international students often achieve higher economic outcomes compared to their Canadian-born counterparts. Immigrants who arrive as children, in particular, pursue higher education at greater rates and earn higher wages by age 25.

The results raise questions about Canada’s immigration and education strategies. Policymakers are encouraged to refine pathways for economic-class immigration, tailoring policies to attract and retain international students in high-demand fields.