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This chapter analyses recent Canadian evidence associated with the linkages between educational expenditure and skill formation, and the relationships between educational attainment, skills, and labour market outcomes. Some conclusions from this analysis are that: Canada invests heavily in education; the population is well educated by international standards; recent results from the Third International Mathematics and Science Study (TIMSS) and the OECD Program for International Student Assessment (PISA) were mixed with better performance in PISA than in TIMSS; there are substantial variations in student achievement across Canadian provinces; International Adult Literacy Survey (IALS) data reveals that the education system is effective in enhancing literacy skills; estimates of the 'return to schooling' are similar to those obtained in other countries; women benefit substantially more from additional education than men; there is a significant earnings premium associated with completing an educational program relative to 'dropping out'.

This publication explores how Canadian educational programs are changing, which skills matter in the Canadian economy, and how policy has responded to the educational and economic demands of the 1990s, with a focus on Western Canada. The first chapter is 'Introduction: towards a research program in education and training' by Jane Gaskell and Kjell Rubenson (p. 3-17). Part one, 'What skills matter in the economy?: economic approaches', contains the following chapters: Education, skills, and labour market outcomes: exploring the linkages in Canada / W. Craig Riddell (p. 21-55); Education and technological revolutions: the role of the social sciences and the humanities in the knowledge-based economy / Robert C. Allen (p. 56-85). Part two, 'Achieving equity: three analyses of outcomes', contains the chapters: What are Canadians doing after school?: an analysis of post-school training activity / Derek P. J. Hum and Wayne Simpson (p. 89-117); The post-secondary education of disadvantaged adults / Atlanta Sloane-Seale, Lori Wallace, and Ben Levin (p. 118-137); What outcomes matter to you?: exploring welfare policy and programs from the perspective of low-income women / Shauna Butterwick (p. 138-156). Part three, 'Policy and practice: case studies linking education and work', contains the chapters: Policy, rhetoric, and educational outcomes: interpreting Skills Now! / Lara M. Lackey (p. 159-185); Working outcomes in the classroom: a case study of applied academics in British Columbia / Jim Gaskell, Cynthia Nicol, and Li-ling Tsai (p. 186-203); Co-op education: tensions and outcomes of experiential learning / Garnet Grosjean (p. 204-219). The concluding chapter is 'Learning from research networks: the Western Research Network on Education and Training, 1996-2001' by Jane Gaskell and Deanna McLeod (p. 220-236).

In Canada, the educational and economic outcomes for Aboriginal people are of particular concern. Overall, steadily rising levels of average educational attainment over the last three decades have not reduced economic inequality. This chapter presents longitudinal research on the links between Aboriginal people's motivations, barriers to participation in postsecondary education and training, and labour market outcomes. The research focuses on disadvantaged students enrolled in Manitoba Access programs and examines the factors that help adults overcome disadvantage. The data showed that access to higher education resulted in improved life and employment outcomes. At the same time, the data supports the view that the relationship between education, employment, and other life outcomes is complex.