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Social Classes, Inequality and Redistributive Policies in Canada

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  • Abdelkrim Araar

Abstract

The social performance of fiscal redistributive mechanisms in Canada continues to receive a growing interest from politicians and research scientists. The aim of this paper is to assess the evolution of social classes in Canada and to check whether the market and governmental redistribution factors have affected their evolution during the last decade. We focus on the dynamic of inequality, polarization and progressivity of the fiscal system. The results of this study confirm the effectiveness of governmental redistributive mechanism to decrease inequality and polarization significantly and to maintain the middle social class at the detriment of the poorest one. The other evidence concerns the chronic increase in population share and wellbeing of the rich class. Finally, the progressivity of fiscal sytem has registered a significant increase during the last few years.

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File URL: http://www.cirpee.org/fileadmin/documents/Cahiers_2008/CIRPEE08-17.pdf
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Bibliographic Info

Paper provided by CIRPEE in its series Cahiers de recherche with number 0817.

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Date of creation: 2008
Date of revision:
Handle: RePEc:lvl:lacicr:0817

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Keywords: Social classes; poverty; inequality; redistribution;

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References

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  1. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-51, July.
  2. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
  3. Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2003. "Polarization: Concepts, Measurement, Estimation," Working Papers 46, Barcelona Graduate School of Economics.
  4. Juan Gabriel Rodríguez, 2006. "Measuring Bipolarization, Inequality, Welfare and Poverty," Working Papers 39, ECINEQ, Society for the Study of Economic Inequality.
  5. Chen, Shaohua & Ravallion, Martin, 2001. "How Did the World's Poorest Fare in the 1990s?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 283-300, September.
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  7. Ravallion, Martin & Bidani, Benu, 1993. "How robust is a poverty profile?," Policy Research Working Paper Series 1223, The World Bank.
  8. Thor O. Thoresen, 2002. "Reduced Tax Progressivity in Norway in the Nineties The Effect from Tax Changes," Discussion Papers 335, Research Department of Statistics Norway.
  9. Lambert, Peter J & Aronson, J Richard, 1993. "Inequality Decomposition Analysis and the Gini Coefficient Revisited," Economic Journal, Royal Economic Society, vol. 103(420), pages 1221-27, September.
  10. repec:ebl:ecbull:v:3:y:2003:i:19:p:1-16 is not listed on IDEAS
  11. James Foster & Michael Wolfson, 2010. "Polarization and the decline of the middle class: Canada and the U.S," Journal of Economic Inequality, Springer, vol. 8(2), pages 247-273, June.
  12. R. A. Musgrave & Tun Thin, 1948. "Income Tax Progression, 1929-48," Journal of Political Economy, University of Chicago Press, vol. 56, pages 498.
  13. Kakwani, Nanak, 1993. "Poverty and Economic Growth with Application to Cote d'Ivoire," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(2), pages 121-39, June.
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Cited by:
  1. Guillermo Cruces & Luis Felipe López Calva & Diego Battistón, 2011. "Down and Out or Up and In? Polarization-Based Measures of the Middle Class for Latin America," CEDLAS, Working Papers 0113, CEDLAS, Universidad Nacional de La Plata.

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