Economic Inequality in Canada

The total income received by households from all sources before taxes are paid.

The income households actually receive after taxes are paid.

Income earned in factor markets (labor, land, capital, and entrepreneurship) before paying income taxes.

A measure of income inequality that graphs the cumulative percentage of income received against the cumulative percentage of households.

The line on a Lorenz curve representing perfect income equality, where every household receives the same amount of income.

A measure of income inequality that ranges from 0 (perfect equality) to 1 (complete inequality).

The level of income below which a family normally spends 63.6 percent or more of its income on food, shelter, and clothing.

The accumulated knowledge and skills of human beings, which increases their productivity and earnings.

The difference in wages between workers with different levels of skill and education.

The tendency for people to marry within their own socioeconomic class.

A tax system where taxpayers with higher incomes pay a larger percentage of their income in taxes.

A tax system where taxpayers with lower incomes pay a larger percentage of their income in taxes.

A tax system where all taxpayers pay the same percentage of their income in taxes, regardless of their income level.

A situation where individuals are discouraged from working more because they face a high marginal tax rate on their earnings.

The idea that there is a trade-off between achieving greater income equality and maintaining economic efficiency.

The distribution of income that would occur in the absence of government intervention.

Payments made by the government to households, such as welfare, social security, and employment insurance.

A situation where the demand for high-skilled workers is greater than the demand for low-skilled workers.

The increase in global trade and interconnectedness, which can impact income inequality by shifting demand for different types of workers.

The process of shifting income from higher-income earners to lower-income earners through government policies like taxes and transfer payments.

The difference between the value of a household's assets and its liabilities.

The difference between the value of a household's income and its expenditure.

The rate at which a household's income changes as its income increases.

The total amount of taxes paid divided by total income.

Programs designed to provide financial assistance to low-income households, including the Guaranteed Income Supplement and Old Age Security.

A program that provides financial assistance to workers who are temporarily unemployed due to job loss.

A legally mandated minimum hourly wage that employers are required to pay their workers.