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New Perspectives on Canadian National and Regional Income Inequality

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  • David Gray
  • Jeffrey Mills
  • Sourushe Zandvakili

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Abstract

We study regional differences in family income inequality employing the Theil entropy measures, which are decomposable into a between-regions element and an element representing inequality within each of five regions in Canada, from 1991-1997. A bootstrapping technique is applied in order to draw statistical inferences from our findings. We do not find significant between-region differences in the overall degree of inequality; it appears the observed rise in inequality over this period is due to factors within regions. We find decomposition based on region and education does contribute significantly to the between region element of inequality, and that within these regions the level of income inequality varies. Decomposition by region and immigration status indicated that immigration status is not a significant factor in determining inequality. We also find that the regions of Canada have experienced differential trends in inequality, a pattern that is masked when analyzing national trends.

Suggested Citation

  • David Gray & Jeffrey Mills & Sourushe Zandvakili, 2003. "New Perspectives on Canadian National and Regional Income Inequality," University of Cincinnati, Economics Working Papers Series 2003-03, University of Cincinnati, Department of Economics.
  • Handle: RePEc:cin:ucecwp:2003-03
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    File URL: http://www.artsci.uc.edu/collegedepts/economics/research/docs/Wppdf/2003-03.pdf
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    Cited by:

    1. Juan Rodríguez, 2008. "Partial equality-of-opportunity orderings," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 31(3), pages 435-456, October.
    2. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January.
    3. Juan Gabriel Rodríguez, 2007. "Partial and complete equality-of-opportunity orderings," Working Papers 70, ECINEQ, Society for the Study of Economic Inequality.

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