RESEARCH - ANALYSIS - SOLUTIONS

CCPA R e v i e w
E c o n o m i c & S o c i a l Tr e n d s
September 2012

Income Inequality in Canada: How does Manitoba compare? Can we do better?
The Canadian Centre for Policy Alternatives has been documenting the rise in inequality in Canada since 2006. More recently, the Conference Board of Canada and the OECD have confirmed this trend. These organizations also report that inequality in Canada is now increasing faster than is the case in many other countries. In their highly acclaimed 2009 book The Spirit Level: Why More Equal Societies Almost Always Do Better, Wilkinson and Pickett showed the impact of inequality on a variety of measures such as levels of crime, teenage pregnancies, life expectancy and educational achievement (to name a few). The study concluded that countries that are most equal do best. If Canada wants to measure up to more equal countries, the growing gap between rich and poor will need to be addressed. The federal government has the most important role to play in redressing the imbalance. CCPA and others have suggested how poverty and inequality can be tackled through improved policies and programs, and better redistribution of wealth through taxes and transfers at the federal level. But provincial governments also have a responsibility. A recent study in Ontario shows that province to be the most unequal. Our analysis looks at the trend in inequality across Canada with a focus on measuring progress in Manitoba for individuals earning market incomes. As do the authors of the Ontario study, we conclude that tax policy must be used to increase public revenue if our province is to do what is necessary to significantly reduce inequality and ensure all Manitobans have the tools that they need to move out of poverty.

Figure 1 Gini Coefficient (Adjusted Market Income* – All Family Units)

*In order to