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AN ANALYSIS OF DIFFERENTIAL PROVINCIAL INCOME INEQUALITY TRENDS IN CANADA

Studies on Economic Well-Being: Essays in the Honor of John P. Formby

ISBN: 978-0-76231-136-1, eISBN: 978-1-84950-292-4

Publication date: 15 December 2004

Abstract

We study Canadian national and provincial family income inequality from 1991 to 1997. We use special cases of generalized entropy measures, the Theil measures of inequality, since they are decomposable into between-provinces inequality and within provinces inequality. We draw statistical inferences from our findings by using the bootstrapping technique. We find that Canadian provinces have experienced differential trends in family income inequality over this period, a pattern that is masked when analyzing solely national trends. Changes in between-province family income inequality are found to be insignificant, indicating that the observed rise in overall inequality over this period is due to factors within provinces. Changes in within-province family income inequality are found to be significant. We further analyze two-way decompositions by province and education, and by province and age, to learn about the role of human capital and the life cycle in determining changes in family inequality among and within Canadian provinces.

Citation

Gray, D., Mills, J.A. and Zandvakili, S. (2004), "AN ANALYSIS OF DIFFERENTIAL PROVINCIAL INCOME INEQUALITY TRENDS IN CANADA", Bishop, J.A. and Amiel, Y. (Ed.) Studies on Economic Well-Being: Essays in the Honor of John P. Formby (Research on Economic Inequality, Vol. 12), Emerald Group Publishing Limited, Leeds, pp. 443-461. https://doi.org/10.1016/S1049-2585(04)12018-8

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited