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Canadian Inequality: Recent Development and Policy Options

Author

Listed:
  • Fortin, Nicole M.
  • Green, David A.
  • Lemieux, Thomas
  • Milligan, Kevin
  • Riddell, W. Craig

Abstract

Considerable concern has recently been expressed about growing income inequality. Much of the discussion, though, has been in general terms and focused on the U.S. experience. To understand whether and how Canada ought to respond to this development, we need to be clear on the facts. This paper documents Canadian patterns in income inequality and investigates the top 1% of earners – the group receiving much attention. We summarize what is known about the causes of growing income inequality, including the role of gender wage differences. Finally we outline policy options for reducing -- or slowing the growth of -- inequality.

Suggested Citation

  • Fortin, Nicole M. & Green, David A. & Lemieux, Thomas & Milligan, Kevin & Riddell, W. Craig, 2012. "Canadian Inequality: Recent Development and Policy Options," CLSSRN working papers clsrn_admin-2012-18, Vancouver School of Economics, revised 30 May 2012.
    • Handle: RePEc:ubc:clssrn:clsrn_admin-2012-18
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    File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%20100%20-%20Green,%20Lemieux,%20Milligan%20and%20Riddell.pdf
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    More about this item

    Keywords

    income inequality; polarization; technical change; tax and transfer system; minimum wages; gender wage gap; unions; globalization;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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