Income Inequality

There is some research that describes the positive impact that economic development can have on poverty reduction. However, other studies have found that economic growth is less effective in countries that have more income inequality (Agyemang, 2015). This demonstrates how some strategies for economic growth do not benefit low-income populations and can even increase income inequality. A study by G.S. Fields (1980) examined three strategies for economic growth: modern-sector enlargement growth, modern sector enrichment growth and traditional sector enrichment growth, in their relation to improving or worsening income inequality and poverty. Modern-sector enlargement growth and traditional sector enrichment growth were found to lower income inequality while modern sector enrichment growth made it worse.

Eric Agmeyang (2015) explains that “the prospect for alleviating absolute poverty therefore depends on the rate of sustained economic growth and how its benefits are distributed in the society.” Effective economic development must therefore address income inequality and ensure that low income populations are benefiting directly from the economic growth.


Featured Resources

The Wealth Gap: Perceptions and Misconceptions in Canada - Broadbent Institute (Report)

Minimum Wage, Maximum Wager in Alberta - Caledon Institute of Social Policy

Minimum Wage Rates in Canada: 1965-2015 - Caledon Institute of Social Policy (Report)

Sick of Inequality: The Case of Action by the Government of Alberta on Social Determinants of Health (Parkland Institute)

From Gap to Chasm: Alberta’s Increasing Income Inequality (Parkland Institute)

Equal Worth: Designing Effective Pay Equity Laws for Alberta (Parkland Institute)

The Alberta Disadvantage: Gender, Taxation and Income Inequality - Parkland Institute

Climbing Up and Kicking Down: Executive Pay in Canada

Haves and Have-Nots:Deep Persistent Wealth Inequality in Canada

Towards a More Equal Canada: A Report on Canada’s Economic and Social Inequality

The Wealth Gap: Perceptions And Misconceptions in Canada

Ideas presented here do not reflect the COH and the Homeless Hub.