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Canadian Inequality: Recent Development and Policy Options

Author

Listed:
  • Fortin, Nicole M.
  • Green, David A.
  • Lemieux, Thomas
  • Milligan, Kevin
  • Riddell, W. Craig

Abstract

Considerable concern has recently been expressed about growing income inequality. Much of the discussion, though, has been in general terms and focused on the U.S. experience. To understand whether and how Canada ought to respond to this development, we need to be clear on the facts. This paper documents Canadian patterns in income inequality and investigates the top 1% of earners – the group receiving much attention. We summarize what is known about the causes of growing income inequality, including the role of gender wage differences. Finally we outline policy options for reducing -- or slowing the growth of -- inequality.

Suggested Citation

  • Fortin, Nicole M. & Green, David A. & Lemieux, Thomas & Milligan, Kevin & Riddell, W. Craig, 2012. "Canadian Inequality: Recent Development and Policy Options," CLSSRN working papers clsrn_admin-2012-18, Vancouver School of Economics, revised 30 May 2012.
  • Handle: RePEc:ubc:clssrn:clsrn_admin-2012-18
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    File URL: http://www.clsrn.econ.ubc.ca/workingpapers/CLSRN%20Working%20Paper%20no.%20100%20-%20Green,%20Lemieux,%20Milligan%20and%20Riddell.pdf
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      by Tyler Cowen in Marginal Revolution on 2012-06-08 22:41:43

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    Cited by:

    1. A. Abigail Payne & Justin Smith, 2015. "Does income inequality increase charitable giving?," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 793-818, May.
    2. Sam Norris & Krishna Pendakur, 2015. "Consumption inequality in Canada, 1997 to 2009," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 773-792, May.
    3. Umar M. A. Boodoo & Rafael Gomez & Morley Gunderson, 2014. "Relative income, absolute income and the life satisfaction of older adults: do retirees differ from the non-retired?," Industrial Relations Journal, Wiley Blackwell, vol. 45(4), pages 281-299, July.
    4. Benoit Dostie, 2018. "Polarisation du marché du travail, structure industrielle et croissance économique," CIRANO Project Reports 2018rp-02, CIRANO.
    5. Peter Burton & Shelley Phipps, 2017. "The Economic Well-Being of Canadian Children," LIS Working papers 704, LIS Cross-National Data Center in Luxembourg.
    6. Lemieux, Thomas & Riddell, W. Craig, 2015. "Top Incomes in Canada: Evidence from the Census," CLSSRN working papers clsrn_admin-2015-12, Vancouver School of Economics, revised 07 Jul 2015.
    7. Beach, Charles, 2017. "Have Middle-Class Earnings Risen in Canada? A Statistical Inference Approach," Queen's Economics Department Working Papers 274719, Queen's University - Department of Economics.
    8. repec:kap:jgeosy:v:20:y:2018:i:1:d:10.1007_s10109-017-0255-0 is not listed on IDEAS
    9. Joseph Marchand, 2015. "The distributional impacts of an energy boom in Western Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 714-735, May.
    10. Charles Beach, 2017. "Have Middle-Class Earnings Risen in Canada? A Statistical Inference Approach," Working Papers 1393, Queen's University, Department of Economics.
    11. Abbott, Michael G. & Beach, Charles M., 2013. "Earnings Mobility of Canadian Immigrants: A Transition Matrix Approach," CLSSRN working papers clsrn_admin-2013-47, Vancouver School of Economics, revised 27 Oct 2013.
    12. Mathieu Dufour & Ellen Russell, 2015. "Why Isn't Productivity More Popular? A Bargaining Power Approach to the Pay/Productivity Linkage in Canada," International Productivity Monitor, Centre for the Study of Living Standards, vol. 28, pages 47-62, Spring.
    13. Hou, Feng & Picot , Garnett, 2015. "Immigration, Low Income and Income Inequality in Canada: What’s New in the 2000s?," CLSSRN working papers clsrn_admin-2015-2, Vancouver School of Economics, revised 25 Jan 2015.
    14. repec:jid:journl:y:2017:v:25:i:1:p:1-25 is not listed on IDEAS
    15. 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.
    16. Danielle Lamb, 2013. "Earnings Inequality Among Aboriginal Groups in Canada," Journal of Labor Research, Springer, vol. 34(2), pages 224-240, June.
    17. Paul Makdissi & Myra Yazbeck, 2012. "On the Measurement of Indignation," Working Papers 1213E, University of Ottawa, Department of Economics.
    18. Andrew Sharpe & Evan Capeluck, 2012. "The Impact of Redistribution on Income Inequality in Canada and the Provinces, 1981-2010," CSLS Research Reports 2012-08, Centre for the Study of Living Standards.
    19. Paul Makdissi & Myra Yazbeck, 2015. "On the measurement of plutonomy," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(4), pages 703-717, April.
    20. repec:iza:izawol:journl:y:2018:n:432 is not listed on IDEAS

    More about this item

    Keywords

    income inequality; polarization; technical change; tax and transfer system; minimum wages; gender wage gap; unions; globalization;

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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