Inequality in Canada: Separating Fact From Fiction

Inequality in Canada: Separating Fact From Fiction

Pages:15 pages25 min read

Author: Pedro Antunes


Income inequality has been declining in Canada, but there’s still much room for improvement. This briefing explores ways that we can reduce income disparities.

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Despite popular belief that inequality is rising, income inequality in Canada has improved in recent years and fell sharply during the pandemic. Wealth inequality has declined dramatically over the past two decades.

But inequality still exists in Canada—women, racialized groups, new Canadians, and Indigenous people face tougher economic circumstances.

The end of pandemic supports, high inflation, and high interest rates will put pressure on inequality. Lower-income households will suffer more under these circumstances.

Access to health, education, and daycare contribute to reducing inequality and have helped Canada be a leader in intergenerational mobility. Inheritance taxes could improve our outcomes further.

A well-targeted, means-tested minimum income, distributed federally, could help efficiently alleviate income inequality among disparate groups.

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