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Canadian Inequality: Recent Developments and Policy Options

Author

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

Abstract

Considerable concern has recently been expressed worldwide about growing income inequality. Much of the discussion, though, has been in general terms and focused on the US 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 percent of earners - the group receiving the most 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

  • Nicole Fortin & David A. Green & Thomas Lemieux & Kevin Milligan & W. Craig Riddell, 2012. "Canadian Inequality: Recent Developments and Policy Options," Canadian Public Policy, University of Toronto Press, vol. 38(2), pages 121-145, June.
    • Handle: RePEc:cpp:issued:v:38:y:2012:i:2:p:121-145
    DOI: 10.3138/cpp.38.2.121
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    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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