Income inequality in Canada

Arbeitspapier

Concerns over rising inequality have heightened in the years following the 2007-09 global financial crisis and, more recently, with the COVID-19 pandemic. This staff discussion paper reviews the historical facts regarding income inequality in Canada, comparing Canada with the United States and reviewing briefly what the literature says about the most likely drivers of the rise in inequality. Data show that income inequality in Canada increased substantially during the 1980s and first half of the 1990s but has been relatively stable over the past 25 years. This increase was felt mainly by low-income earners and younger people, while older people benefited from higher retirement income. Income inequality in the United States has been higher than in Canada for the last four decades, with the main differences observed at the high end of the income distribution. These facts give rise to a number of important questions for future research, including the role (if any) of monetary policy in driving changes in income inequality and that of the monetary policy framework and decisions in reflecting the observed inequality.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bank of Canada Staff Discussion Paper ; No. 2022-16

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Wage Level and Structure; Wage Differentials ; Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions ; Education and Inequality ; Measurement and Analysis of Poverty ; Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: U.S.; Canada: 1913-
• Subject: Central bank research ; Monetary and financial indicators ; Labour markets

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Burkinshaw, Sarah ; Terajima, Yaz ; Wilkins, Carolyn A.
• Event: Veröffentlichung
• (who): Bank of Canada
• (where): Ottawa
• (when): 2022

Further information

• DOI: doi:10.34989/sdp-2022-16
• Handle: http://hdl.handle.net/10419/266077
• Last update: 10.03.2025, 11:44 AM CET