Economic Growth, Income Distribution and Economic Welfare in Canada 1975-1994
Assessment of trends in Canadian living standards is incomplete if family money incomes are not adjusted for the shrinking size of Canadian families. This paper uses OECD and Statistics Canada equivalence scales to examine the level and distribution of equivalent money income in 1975, 1981,1984, 1989 and 1994, using SCF micro-data and concentrates on inequality within and between birth cohorts. Less than 5% of aggregate income inequality is due to intergenerational inequality. From 1975 to 1989, all cohorts experienced rising average incomes, with no trend in intra-cohort inequality, except among senior citizens. The 1990's have, however, been a decade of declining average real equivalent income.
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