--- canonical_url: "https://csls.ca/research/the-labour-market-and-economic-performance-of-canadas-first-nations-reserves-the-role-of-educational-attainment-and-remoteness/" title: "The Labour Market and Economic Performance of Canada’s First Nations Reserves: The Role of Educational Attainment and Remoteness" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T13:25:03+00:00" date_modified: "2026-07-07T08:13:56+00:00" post_type: "research" summary: "" post_tag: - "Aboriginal" - "earnings" - "educational attainment" - "First Nations reserves" - "GDP" - "governance" - "INAC" - "labour market" - "remoteness" country_focus: - "Canada" province_region: - "National" research_theme: - "Indigenous Economic Development" - "Labour Markets" - "Regional Economic Development" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # The Labour Market and Economic Performance of Canada’s First Nations Reserves: The Role of Educational Attainment and Remoteness Canonical URL: https://csls.ca/research/the-labour-market-and-economic-performance-of-canadas-first-nations-reserves-the-role-of-educational-attainment-and-remoteness/ # The Labour Market and Economic Performance of Canada’s First Nations Reserves: The Role of Educational Attainment and Remoteness [Download full PDF report](https://csls.ca/pdf/csls2011-05-1.pdf) Cite this report × Cite this report as: Sharpe, Andrew, and Simon Lapointe. 2011. “The Labour Market and Economic Performance of Canada’s First Nations Reserves: The Role of Educational Attainment and Remoteness.” CSLS Research Report 2011-05. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/the-labour-market-and-economic-performance-of-canadas-first-nations-reserves-the-role-of-educational-attainment-and-remoteness/ ## Authors: - Andrew Sharpe Centre for the Study of Living Standards (CSLS) - Simon Lapointe Centre for the Study of Living Standards (CSLS) ## Report 2011-05 June 2011 75 pages ## Related research [Closing the First Nations Education Gap in Canada: Assessing Progress and Estimating the Economic Benefits — An Update Centre for the Study of Living Standards (CSLS) February 2023 | Report 2023-01 | 101 pages](https://csls.ca/research/closing-the-first-nations-education-gap-in-canada-assessing-progress-and-estimating-the-economic-benefits-an-update-2023-01/) [Apprenticeship in Canada: A Training System Under Siege? 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The report uses reserve-level data on average earnings, GDP per capita, labour market indicators and distance to a service centre for 312 reserves. Using descriptive statistics, simple correlation and multiple regression analysis, the report draws conclusion on four important questions. First, the report finds that a higher level of educational attainment, on average, has a positive effect on the labour market performance of a reserve. Then, a positive link is found between educational attainment and economic performance (average earnings and GDP per capita). Also, the report finds evidence that remoteness of a reserve plays a role in its labour market and economic performance. Specifically, reserves situated near urban centres fare better than the ones in rural/remote areas and those not connected by road to a service centre all year long (special access). However, when controlling for characteristics of reserves, the very remote reserves seem to fare better than expected in comparison to urban reserves. Yet, when an instrumental variable is used to account for the possibility that educational attainment is endogenous in the model, the remoteness of a reserve appears to play no role in determining reserve labour market or economic performance. Finally, the report also analyses the role of governance on labour market and economic performance. It finds that better governance is correlated to better labour market performance, higher average earnings and higher GDP per capita. L’objectif de ce rapport est d’examiner la relation entre le niveau de scolarité, l’éloignement, et la performance du marché du travail et économique à l’échelle des réserves pour les Autochtones canadiens. Le rapport utilise des données à l’échelle des réserves sur les revenus moyens, le PIB par habitant, les indicateurs du marché du travail et la distance par rapport à un centre de services pour 312 réserves. À l’aide de statistiques descriptives, de corrélations simples et d’analyses de régression multiple, le rapport tire des conclusions sur quatre questions importantes. D’abord, le rapport constate qu’un niveau de scolarité plus élevé a, en moyenne, un effet positif sur la performance du marché du travail d’une réserve. Ensuite, un lien positif est observé entre le niveau de scolarité et la performance économique (revenus moyens et PIB par habitant). De plus, le rapport démontre que l’éloignement d’une réserve joue un rôle dans sa performance économique et sur le marché du travail. Plus précisément, les réserves situées à proximité de centres urbains affichent de meilleurs résultats que celles situées en milieu rural ou éloigné et celles qui ne sont pas reliées par route à un centre de services toute l’année (accès spécial). Toutefois, lorsqu’on tient compte des caractéristiques des réserves, les réserves très éloignées semblent afficher de meilleurs résultats qu’attendu par rapport aux réserves urbaines. Cependant, lorsqu’une variable instrumentale est utilisée pour tenir compte de la possible endogénéité du niveau de scolarité dans le modèle, l’éloignement d’une réserve ne semble jouer aucun rôle dans la détermination de sa performance économique ou sur le marché du travail. Enfin, le rapport analyse également le rôle de la qualité de l’éducation. [Download full PDF report](https://csls.ca/pdf/csls2011-05-1.pdf)