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.
Why is income inequality a problem in Canada?
Inequality may have only risen modestly, on average, across the country, but economic forces continue to concentrate both income and wealth among Canada's richest. This represents a serious concern for our country's standard of living — high levels of inequality can be a substantial barrier to future economic growth.
What is Canada doing about income inequality?
Personal income taxes and government transfers (such as social assistance, employment insurance, child benefits, and old age security) have helped to reduce income inequality.
Why is income inequality growing in Canada?
Inequality was notably lower in Canada, with a Gini coefficient of 0.285 for equivalent LIMEW in 2005, compared to a US coefficient of 0.376—a gap that primarily reflects the greater importance of income from wealth in the States. However, the difference in Gini coefficients declined between 2000 and 2005.