baystreet_thumb-1.png
baystreet_thumb-1.png This article is more than 6 years old

OECD Study: The gap between Canada’s rich and poor is significantly bigger than previously thought

Canada's wealthiest 10% are actually earning closer to four times more than Canadians in the middle

PP.gif

It looks like inequality in Canada is much higher than previously thought.

A recent study published by the Organisation for Economic Co-operation and Development, a major voice on global economic policy representing 34 developed countries, suggests past measures of inequality have failed to capture the true scale of the growing gap between the rich and the poor.

The study, authored by OECD economists Nicolas Ruiz and Nicolas Woloszko, explains that past measures of income inequality relied on data from household surveys that, although useful, are “well-known” to under-report top incomes, something that “can lead to [a] large bias in the measurement of inequality.”

To get a clearer picture of how rich the wealthy truly are, the OECD looked at tax data to fill in the gaps for top incomes.

The results? Canada’s top 10% of income earners were previously thought to earn around three times more than median income earners, but the OECD’s new numbers suggest they’re actually earning closer to four times more than those in the middle:

oecd-inequality-canada.png

The same also rings true of top earners around the world.

“The results point to a significant increase of the level of inequality measured by standard statistics based on official figures,” the OECD study concludes.

Using the Gini coefficient (a commonly used measure of inequality), the OECD finds inequality in Canada ranks slightly above the average in other OECD countries:

oecd-inequality-world-arrow.png

A 2014 survey commissioned by the Broadbent Institute found Canadians “vastly underestimate how skewed the distribution of wealth actually is.”

Apparently the income gap is bigger than previously thought too.

Photo: Pixabay. Used under Creative Commons license.

Our journalism is powered by readers like you.

We’re an award-winning non-profit news organization that covers topics like social and economic inequality, big business and labour, and right-wing extremism.

Help us build so we can bring to light stories that don’t get the attention they deserve from Canada’s big corporate media outlets.

 

Donate
PressProgress
PressProgress is an award-winning non-profit news organization focused on uncovering and unpacking the news through original investigative and explanatory journalism.

Most Shared

VSB News

Doug Ford is Looking to Cut Costs in Healthcare Staffing, Documents Show

Related Stories

News

Vancouver Police Tried to Gift Toy Guns to Elementary School Students, Teacher Alleges During Public Forum

View the post
News

Doug Ford Wants to Track the Performance of Social Assistance Programs. He’s Not Tracking Poverty.

View the post
PODCAST

Danielle Smith’s Billion Dollar Giveaway to Polluters

View the post

Explainers

Human rights & inclusion

Amira Elghawaby

Here’s The Problem With Hoping Corporations Will Be Socially and Environmentally Responsible On Their Own

View the post
Politics & strategy

Jeremy Appel

The battle of the PACs in Calgary’s municipal election

View the post
Politics & strategy

Jeremy Appel

27 Different Candidates are Vying to be Calgary’s Mayor. Here Are the Biggest Issues at Stake.

View the post
Newspapers always have a business section – why not a labour section? We’ve launched a free newsletter covering labour issues in Canada.
Get Canadian Labour News You Won't Find in Corporate Newspapers.
We’ve launched a free newsletter covering labour issues in Canada.
Get Canadian Labour News You Won't Find in Corporate Newspapers