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An Analysis Of Differential Provincial Income Inequality Trends In Canada

In: Studies on Economic Well-Being: Essays in the Honor of John P. Formby

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  • David Gray
  • Jeffrey A. Mills
  • Sourushe Zandvakili

Abstract

We study Canadian national and provincial family income inequality from 1991 to 1997. We use special cases of generalized entropy measures, the Theil measures of inequality, since they are decomposable into between-provinces inequality and within provinces inequality. We draw statistical inferences from our findings by using the bootstrapping technique. We find that Canadian provinces have experienced differential trends in family income inequality over this period, a pattern that is masked when analyzing solely national trends. Changes in between-province family income inequality are found to be insignificant, indicating that the observed rise in overall inequality over this period is due to factors within provinces. Changes in within-province family income inequality are found to be significant. We further analyze two-way decompositions by province and education, and by province and age, to learn about the role of human capital and the life cycle in determining changes in family inequality among and within Canadian provinces.

Suggested Citation

  • David Gray & Jeffrey A. Mills & Sourushe Zandvakili, 2004. "An Analysis Of Differential Provincial Income Inequality Trends In Canada," Research on Economic Inequality, in: Studies on Economic Well-Being: Essays in the Honor of John P. Formby, pages 443-461, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-2585(04)12018-8
    DOI: 10.1016/S1049-2585(04)12018-8
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    Cited by:

    1. Luis Ayala & Javier Martín‐Román & Juan Vicente, 2020. "The contribution of the spatial dimension to inequality: A counterfactual analysis for OECD countries," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 447-477, June.
    2. Ke-Mei Chen & Te-Mu Wang, 2015. "Determinants of Poverty Status in Taiwan: A Multilevel Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(2), pages 371-389, September.
    3. Josef Novotný, 2007. "On the measurement of regional inequality: does spatial dimension of income inequality matter?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(3), pages 563-580, September.

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