Consumption and Income Inequality: The Case of Atlantic Canada from 19691996
In this paper we re-examine inequality in Canada with a comprehensive look at inequality trends in Atlantic Canada during the period 1969 to 1996. We use consumption expenditure as a measure of family well-being and compare it with the income-based measures of well-being. The results of this study reveal the following: (a) consumption distribution is more equal than the income distribution; (b) inequality trends are sensitive to how family resources are measured; (c) consumption inequality in Atlantic Canada fluctuated considerably until the mid-1980s; and (d) tax and transfer policies have played an important role in reducing income disparities in Atlantic Canada as well as in the rest of Canada. Overall, consumption inequality has continually been lower in Atlantic Canada in comparison to the rest of Canada. The paper also examines the role of key socio-demographic factors using a decomposition methodology.
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Volume (Year): 28 (2002)
Issue (Month): 4 (December)
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References listed on IDEAS
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- Morissette, Rene, 1995. "Why Has Inequality in Weekly Earnings Increased in Canada?," Analytical Studies Branch Research Paper Series 1995080e, Statistics Canada, Analytical Studies Branch.
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- Mookherjee, Dilip & Shorrocks, Anthony F, 1982. "A Decomposition Analysis of the Trend in UK Income Inequality," Economic Journal, Royal Economic Society, vol. 92(368), pages 886-902, December.
- Slesnick, Daniel T, 1993. "Gaining Ground: Poverty in the Postwar United States," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 1-38, February.
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