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Social Classes, Inequality and Redistributive Policies in Canada

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Author Info
Abdelkrim Araar

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

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

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Related research
Keywords: Social classes; poverty; inequality; redistribution;

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Find related papers by JEL classification:
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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  1. Juan Gabriel Rodríguez, 2004. "Measuring polarization, inequality, welfare and poverty," Economic Working Papers at Centro de Estudios Andaluces E2004/75, Centro de Estudios Andaluces. [Downloadable!]
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  2. 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. [Downloadable!] (restricted)
  3. Esteban, Joan & Ray, Debraj, 1994. "On the Measurement of Polarization," Econometrica, Econometric Society, vol. 62(4), pages 819-51, July. [Downloadable!] (restricted)
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  4. Jean-Yves Duclos & Joan Esteban & Debraj Ray, 2004. "Polarization: Concepts, Measurement, Estimation," Econometrica, Econometric Society, vol. 72(6), pages 1737-1772, November. [Downloadable!] (restricted)
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  5. Kakwani, Nanak, 1993. "Poverty and Economic Growth with Application to Cote d'Ivoire," Review of Income and Wealth, Blackwell Publishing, vol. 39(2), pages 121-39, June.
  6. R. A. Musgrave & Tun Thin, 1948. "Income Tax Progression, 1929-48," Journal of Political Economy, University of Chicago Press, vol. 56, pages 498. [Downloadable!] (restricted)
  7. Shaohua Chen & Ravallion, Martin, 2000. "How did the world's poorest fare in the 1990s ?," Policy Research Working Paper Series 2409, The World Bank. [Downloadable!]
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  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. [Downloadable!]
  9. Ravallion, Martin & Bidani, Benu, 1994. "How Robust Is a Poverty Profile?," World Bank Economic Review, Oxford University Press, vol. 8(1), pages 75-102, January.
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  10. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
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