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Growing Unequal? Changes in the Distribution of Earnings across Canadian Cities

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  • Kenyon Bolton
  • Sébastien Breau

Abstract

This paper investigates changes in the distribution of earnings across 87 metropolitan areas in Canada. It does so using micro data taken from the 20 per cent long-form sample of the census for the years 1996, 2001 and 2006. Results point to overall increases in urban inequality and to greater heterogeneity in inequality across the urban hierarchy, with larger cities growing particularly unequal over time. Cross-sectional and panel regression models suggest that city size, unemployment, deindustrialisation and the percentage of a city’s population composed of visible minorities contribute to increased inequality. In contrast, a city’s level of economic development has a mitigating effect on inequality, although this effect appears to fade away over time. The effects of changes in a city’s age, education and gender profiles on inequality are mixed.

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  • Kenyon Bolton & Sébastien Breau, 2012. "Growing Unequal? Changes in the Distribution of Earnings across Canadian Cities," Urban Studies, Urban Studies Journal Limited, vol. 49(6), pages 1377-1396, May.
    • Handle: RePEc:sae:urbstu:v:49:y:2012:i:6:p:1377-1396
    DOI: 10.1177/0042098011410335
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    1. Sébastien Breau & Dieter F. Kogler & Kenyon C. Bolton, 2014. "On the Relationship between Innovation and Wage Inequality: New Evidence from Canadian Cities," Economic Geography, Clark University, vol. 90(4), pages 351-373, October.
    2. Haixiao Wu, 2018. "Is There a Kuznets Curve for Intra-City Earnings Inequality?," Working Papers 2018-09, The George Washington University, Institute for International Economic Policy.
    3. Rafa Madariaga & Joan Carles Martori & Ramon Oller, 2019. "Wage income inequality in Catalonian second-rank cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(2), pages 285-304, April.
    4. Modai-Snir, Tal & van Ham, Maarten, 2018. "Inequality, Reordering and Divergent Growth: Processes of Neighbourhood Change in Dutch Cities," IZA Discussion Papers 11883, Institute of Labor Economics (IZA).
    5. Alan Walks, 2014. "From Financialization to Sociospatial Polarization of the City? Evidence from Canada," Economic Geography, Clark University, vol. 90(1), pages 33-66, January.
    6. Sébastien Breau & Michael Shin & Nick Burkhart, 2018. "Pulling apart: new perspectives on the spatial dimensions of neighbourhood income disparities in Canadian cities," Journal of Geographical Systems, Springer, vol. 20(1), pages 1-25, January.
    7. Neil Lee & Paul Sissons & Katy Jones, 2016. "The Geography of Wage Inequality in British Cities," Regional Studies, Taylor & Francis Journals, vol. 50(10), pages 1714-1727, October.
    8. Markus Moos, 2014. "Generational Dimensions of Neoliberal and Post-Fordist Restructuring: The Changing Characteristics of Young Adults and Growing Income Inequality in Montreal and Vancouver," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(6), pages 2078-2102, November.

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