This paper examines the implication of the decision to give 2006 Census respondents the option of letting Statistics Canada access their income tax files rather than answering income-related questions directly. We find that giving respondents the option to share their income tax files (or not) adds a confounding factor when it comes to measuring family-income inequality, particularly for the bottom tail of the distribution. The consent decision does not, however, materially affect the estimation of standard wage equations. [ABSTRACT FROM AUTHOR]
Considerable concern has recently been expressed worldwide about growing income inequality. Much of the discussion, though, has been in general terms and focused on the US experience. To understand whether and how Canada ought to respond to this development, we need to be clear on the facts. This paper documents Canadian patterns in income inequality and investigates the top 1 percent of earners-the group receiving the most attention. We summarize what is known about the causes of growing income inequality, including the role of gender wage differences. Finally, we outline policy options for reducing-or slowing the growth of-inequality. [ABSTRACT FROM AUTHOR]
This paper looks at changes in hourly wages and hours worked per week of prime-age males in different skill groups (measured by earnings quintile) in the United States and Canada from 1981 to 1997. The analysis reveals that increases in hourly wage inequality are primarily responsible for increases in weekly earnings inequality in both countries. Increases in the dispersion of hours worked per week play a more important part in explaining the increase in earnings inequality in Canada than in the United States. High-skill workers experienced increases in earnings growth due to increases in hours and, at least for the US, increases in wages. In contrast, low-skill workers experienced declines in earnings growth due to decreases in wages and hours. This evidence is consistent with a skill-biased demand shock. In Canada a larger percentage of the reduction in earnings of low-skill workers is accounted for by declining hours. This evidence suggests a higher degree of downward wage rigidity in Canada than in the United States. [ABSTRACT FROM AUTHOR]