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Changing income inequality: A distributional paradigm for Canada

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  • Charles M. Beach

Abstract

This paper examines the major changes in income inequality in Canada since the 1970s and collects them as a distributional paradigm for Canada. It focuses on labour market changes in terms of shares of workers and earnings shares for lower earners, middle-class workers and higher earners in a flexible general framework. Polarization of full-time workers, loss of middle-class earnings share and increase in a higher earnings gap are highlighted. Changing returns to human capital, role of demographics and cohort effects and declining labour share are examined. The paper also reviews evidence of changing economic mobility and estimating the role of inequality of opportunity.

Suggested Citation

  • Charles M. Beach, 2016. "Changing income inequality: A distributional paradigm for Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 49(4), pages 1229-1292, November.
    • Handle: RePEc:cje:issued:v:49:y:2016:i:4:p:1229-1292
    DOI: 10.1111/caje.12248
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    Cited by:

    1. Russell Davidson, 2018. "Statistical Inference on the Canadian Middle Class," Econometrics, MDPI, vol. 6(1), pages 1-18, March.
    2. Charles Beach, 2018. "Distributional Gains Of Near Higher Earners," Working Paper 1398, Economics Department, Queen's University.
    3. Charles Beach, 2021. "A Useful Empirical Tool Box for Distributional Analysis," Working Paper 1466, Economics Department, Queen's University.
    4. Clément Carbonnier, 2023. "Une analyse interprovinciale de la redistribution des revenus au Canada. Où en est le Québec ?," Post-Print hal-04269577, HAL.
    5. Charles M. Beach, 2017. "Have Middle-class Earnings Risen In Canada? A Statistical Inference Approach," Working Paper 1393, Economics Department, Queen's University.
    6. Lazar Ilic & M Sawada, 2021. "The temporal evolution of income polarization in Canada’s largest CMAs," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-27, June.
    7. Charles Beach, 2023. "Quantile Tool Box Measures for Empirical Analysis and for Testing Distributional Comparisons in Direct Distribution-Free Fashion," Working Paper 1508, Economics Department, Queen's University.

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