International student graduates from the University of Waterloo earn significantly more than their Canadian-born peers, a recent study reveals.
The research, conducted by economists at the University of Waterloo, analyzed student records, immigration data, and income tax returns to compare the earnings of international and Canadian-born graduates.
The study, published by CIC News, highlights that international student graduates from the University of Waterloo earn, on average, 37% more than their Canadian-born counterparts.
The analysis covered graduates who completed their studies between 2017 and 2019. Specifically, international students earned an average of $57,500 one year after graduation, compared to $42,000 for Canadian-born graduates from the same university.
Higher earnings for international students
Findings reveal that the earnings gap between international graduates and Canadian-born graduates is even more pronounced when comparing median salaries.
The study found that the median income for international students one year after graduation was $56,400, while their Canadian-born peers earned $38,700, a difference of 46%. Over the course of 13 years, the gap remained significant, with international graduates earning between $100,000 and $120,000, compared to $100,000 for Canadian-born graduates.
The authors of the study suggest that the higher earnings may be linked to the growing demand for degrees in technology and engineering, fields where many of Waterloo’s international students specialize. Waterloo is known for its strong focus on these areas, which often lead to high-paying job opportunities after graduation.
University of Waterloo’s focus on technology and engineering
Reports inform that the University of Waterloo’s reputation for technology and engineering programs is a key factor in attracting international students. The school’s extensive co-op program, which provides students with practical experience while studying, is another major draw. Waterloo’s co-op program allows students to gain valuable work experience, making them more competitive in the job market upon graduation.
Waterloo’s overall academic standing is also a factor in its appeal to international students. The university ranked 115 in the QS World University Rankings for 2025, placing it among the top five universities in Canada. This ranking, combined with the university’s focus on career-oriented education, helps explain why many international students from Waterloo go on to successful careers.
International students’ path to permanent residency
The study also found that a large proportion of international students at the University of Waterloo choose to stay in Canada after graduation. Around 70% of these students become permanent residents, which is more than double the national average for international students across Canada.
This statistic highlights the growing trend of international graduates choosing to remain in Canada to build their careers, further contributing to their higher earnings over time.
Supporting evidence from other studies
These findings align with other research showing that immigrants and international students tend to have better economic outcomes compared to their Canadian-born counterparts.
CIC further reports that a study conducted by Statistics Canada earlier this year found that newcomers who settled in Canada as children are more likely to pursue higher education. Additionally, by the age of 25, their median wages often surpass the median wages of Canadian tax filers in the same age group.