International students outearn Canadian-born grads in top Canadian university, study finds

International student graduates from the University of Waterloo earn more, on average, than their Canadian-born counterparts, according to a recent study.

To arrive at this conclusion, economists at the University of Waterloo looked at student records from the university, immigration data from Immigration, Refugees, and Citizenship Canada, and T1 income tax returns from the Canada Revenue Agency.

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They found that the earnings of Waterloo’s international student graduates exceeded not only Canadian-born graduates from the same university, but also Canadian-born university graduates nationally.

Specifically, international students who graduated between 2017-19 earned 37% more: an average of $57,500 one year after graduation, compared to their Canadian-born counterparts who were earning $42,000 per year on average.

The difference in the median earnings of these two groups is even larger: $56,400 versus $38,700, a 46% difference.

Moreover, over the first 13 years of their careers, international graduates’ salaries outpaced those of Canadian-born graduates.

Specifically, the average earnings after 13 years are closer to $120,000 for foreign born PR graduates, and between $100,000-120,000 for international students compared to $100,000 for Canadian-born graduates.

The study’s authors suggested that the higher earnings could be attributed to the increasing economic returns of degrees in technology and engineering, fields where UWaterloo’s international students are predominantly concentrated.

The University of Waterloo is known for its focus on technology and engineering, attracting a diverse student body from around the world interested in these fields. It is also known for its extensive co-op program that allows its students to get practical experience. It ranked #115 in the QS World University Rankings 2025, placing it among the top five universities to make the list in Canada.

The findings seem to be in-line with previous research that suggests immigrants have better education and economic outcomes. A study by Statistics Canada earlier this year revealed that newcomers who initially settled in Canada as children are more likely to pursue higher education.

Moreover, after the age of 25, their median wages also equalled or surpassed the median wage of Canadian tax filers in the same age bracket.

The study by University of Waterloo economists also found that roughly 70% of international students who attend the University of Waterloo wind up becoming permanent residents. This is more than double the national average.

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