2016
DOI: 10.1111/caje.12248
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Changing income inequality: A distributional paradigm for Canada

Abstract: This paper examines the major changes in income inequality in Canada since the 1970s and collects them as a distributional paradigm for Canada. It focuses on labour market changes in terms of shares of workers and earnings shares for lower earners, middle‐class workers and higher earners in a flexible general framework. Polarization of full‐time workers, loss of middle‐class earnings share and increase in a higher earnings gap are highlighted. Changing returns to human capital, role of demographics and cohort … Show more

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Cited by 7 publications
(5 citation statements)
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References 151 publications
(176 reference statements)
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“…Canada's fortuity in terms of egalitarianism is uncertain. As noted, amongst OECD countries, Canada has seen the highest increase of income inequality in recent years [3,45,[48][49][50][51][52].…”
Section: Discussionmentioning
confidence: 99%
See 1 more Smart Citation
“…Canada's fortuity in terms of egalitarianism is uncertain. As noted, amongst OECD countries, Canada has seen the highest increase of income inequality in recent years [3,45,[48][49][50][51][52].…”
Section: Discussionmentioning
confidence: 99%
“…Considering that Canada is one of the most urbanized countries of the world (with about four fifths of its population residing in urban areas [46,47]), urban issues are national issues. Research since the 1990s shows that income inequality has increased in Canada (on national, provincial and urban scales), to the extent that the country experienced the highest rise in inequality amongst OECD countries since the mid-1990s [3,45,[48][49][50][51][52]. Such trajectories in income composition and distribution are of concern, because governments will at some point have to seriously address this development in order to evade adverse ramifications such as economic and social instability [53].…”
Section: The Canadian Contextmentioning
confidence: 99%
“…Right panel: the social-to-health spending ratio over the Gini coefficient, line of best fit is a simple regression line risk, the government could address that directly through taxes as a redistribution mechanism. Some research on the rise of income inequality in Canada suggests that in a knowledge-based economy wages will become more unequal through a myriad of pathways, including corporate lobbying (Beach 2016), implying tax-based interventions need to become more radical to reduce Gini coefficients, which could be politically infeasible.…”
Section: Discussionmentioning
confidence: 99%
“…Generally accepted in this vast literature is that increases in income inequality are at least associated with poorer population health, such that income inequality is potentially a marker of mechanisms at play that imperil health (Coburn 2000(Coburn , 2004 if not the causal agent responsible for poor health by acting on psycho-social health pathways (Wilkinson 1999). In Canada, income inequality has been increasing nationally since at least the 1990s and that has come with an expansion of the share of people working in the lowest-earning jobs (Beach 2016). Social spending is designed to mitigate the bad outcomes associated with a poor distribution of the social determinants of health, so it stands to reason that social spending's return on investment in terms of health outcomes might be higher in the presence of relatively higher income inequality.…”
Section: Introductionmentioning
confidence: 99%
“…The absolute income hypothesis is the most common theory explored, which implies that an individual's health only depends on their income ( 9 ); however, the absolute income hypothesis ignores the fact that with economic development, the material goods needed to fully participate in society also become wealthier. As a result, those with a static income may fall behind in a changing society, potentially suffering health education or material inequality from being unable to keep up with average social change standards ( 10 ). Another theory is the relative income hypothesis, which outlines that individuals compare their income to that of others, considering relative income through social reputation, residential location, other mechanism effects, and health education ( 11 ).…”
Section: Literaturesmentioning
confidence: 99%