A recent study conducted by economists at the University of Waterloo revealed that international graduates from the university earn higher average incomes than their Canadian-born peers. The research, which analyzed student records, immigration data from Immigration, Refugees, and Citizenship Canada, and income tax returns from the Canada Revenue Agency, found that international graduates not only earned more than Canadian-born graduates from Waterloo, but they also outperformed Canadian-born university graduates across the country.
For those who graduated between 2017 and 2019, international students earned an average of $57,500 one year after graduation, 37% higher than the $42,000 earned by their Canadian-born counterparts. The disparity is even greater in terms of median earnings, with international graduates earning $56,400 compared to $38,700 for Canadian-born graduates—an impressive 46% difference.
The study also highlighted that this earnings gap continues over time. Over the first 13 years of their careers, international graduates consistently earned more than Canadian-born graduates. Those who became permanent residents saw an average income of nearly $120,000 annually after 13 years, while international graduates earned between $100,000 and $120,000, compared to $100,000 for Canadian-born graduates.
Waterloo’s International Graduates Earn Much More Than Their Canadian Counterparts
According to the study, the higher earnings of international graduates can be attributed to the growing economic value of degrees in technology and engineering—fields in which many University of Waterloo international students excel. With a well-established reputation in these areas and a highly regarded co-op program that provides students with practical, real-world experience, Waterloo has become a top choice for international students. In the QS World University Rankings 2025, the university was ranked 115th worldwide and was one of the top five Canadian institutions to make the list.
These results are consistent with other research showing the positive educational and economic effects of immigration in Canada. For instance, a study from Statistics Canada earlier this year found that children of immigrants are more likely to pursue higher education than their Canadian-born peers. Additionally, after age 25, the median income of these immigrants either equaled or surpassed that of Canadian tax filers in the same age group.
The study also highlighted that approximately 70% of Waterloo’s international students transition to permanent residency, a figure that is more than double the national average. This suggests that the university not only attracts skilled international students but also plays an important role in their integration into Canada’s economy and society.
