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Changing Income Inequality and Immigration in Canada, 1980­1995

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Author Info
Eric G. Moore
Michael A. Pacey
Abstract

While there is a general consensus that income inequality has increased in most developed countries over the last two decades, the analytical focus has been on the national scale. However, these increases in inequality have not been uniform across different segments of society, either in terms of social groups or geographic region. In particular, the high levels of immigration to metropolitan Canada have contributed to growing inequality. Using individual household income data from the 1981, 1986, 1991, and 1996 censuses, this paper identifies the role of immigration and its differential impact on metropolitan and non-metropolitan areas. The impacts became more prominent during the first half of the 1990s when immigration remained high yet the economy slowed. The evidence suggests that the overall impact of immigration is a relatively short-run phenomenon as recent immigrants take time to adjust to the labour market. If recent immigrants are excluded, inequality is still increasing, but at a slower rate, especially in the largest metropolitan areas.

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File URL: http://economics.ca/cgi/jab?journal=cpp&view=v29n1/CPPv29n1p033.pdf
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Publisher Info
Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 29 (2003)
Issue (Month): 1 (March)
Pages: 33-51
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Handle: RePEc:cpp:issued:v:29:y:2003:i:1:p:33-51

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  1. Baker, Michael & Benjamin, Dwayne, 1994. "The Performance of Immigrants in the Canadian Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 369-405, July. [Downloadable!] (restricted)
  2. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Differences in Needs and Assessment of Income Distributions," Bulletin of Economic Research, Blackwell Publishing, vol. 44(2), pages 77-124, April.
  3. Theil, Henri, 1979. "The measurement of inequality by components of income," Economics Letters, Elsevier, vol. 2(2), pages 197-199. [Downloadable!] (restricted)
  4. Osberg, L., 2000. "Long Run Trends in Economic Inequality in Five Countries - a Birth Cohort View," Department of Economics at Dalhousie University working papers archive 2000-1, Dalhousie, Department of Economics.
  5. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September. [Downloadable!] (restricted)
  6. Murphy, Brian & Wolfson, Michael, 1998. "New Views on Inequality Trends in Canada and the United States," Analytical Studies Branch Research Paper Series 1998124e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
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