Canadian income inequality is a city phenomenon

Increasing income inequality is a concern around the world, but a new report suggests that in Canada, rising inequality is mostly an urban phenomenon affecting people in the largest cities. It is not something felt evenly across the country, according to the Chartered Professional Accountants of Canada.

Canada has one of the highest rates of urbanization among industrialized countries. More than four in five Canadians live in cities.

Four largest cities hit hardest

The biggest increases in inequality have occurred in Toronto, Montreal, Vancouver and Calgary, according to the report. For the rest of Canada, after tax inequality actually improves and there is almost no increase in the share of income going to the top one per cent. This information is useful when considering how to help those in need, says Francis Fong chief economist with the Chartered Professional Accountants of Canada.

More accuracy needed, says economist

“I think what’s most important is to make sure we’re talking about the right people when we’re having our conversation about inequality. When we talk about inequality there a certain idea that people have in their heads about who it is they’re trying to help.

“And I think what we need is more accuracy in that conversation. So, who are the ones in Canada feeling the biggest pressures of inequality and how do we help them? What do those people look like?”