The Bucks Stop Here: Trends in Income Inequality Between Generations

Recent research suggests that income inequality is growing in Canada. While income distribution has many dimensions, The Bucks Stop Here focuses on the income gaps between older and younger generations of Canadians and whether these have been growing or shrinking over time.

Using Canada Revenue Agency tax data from 1984 to 2010, this briefing compares the relative employment income of older and younger five-year age cohorts for individuals, couples, and between genders. The results provide clear evidence that the incomes of younger Canadians relative to those of older workers are lower now than 30 years ago. These findings have important implications for both social cohesion and the future growth of the Canadian economy as the country’s population ages.