Study

November 20, 2012 | EST. READ TIME 2 MIN.

Measuring Income Mobility in Canada

This study measures income mobility in Canada over two five-year periods (1996-2001 and 2002-2007) and over a 10-year and a 19-year period (1990-2000 and 1990-2009). In all periods, Canadians initially in the lowest income group (the bottom 20%) experienced the greatest relative income increase.

Key findings

This study measures income mobility in Canada over two five-year periods (1996-2001 and 2002-2007) and over a 10-year and a 19-year period (1990-2000 and 1990-2009). In all periods, Canadians initially in the lowest income group (the bottom 20%) experienced the greatest relative income increase.
Over the 10-year period (1990 to 2000), 83 percent of Canadians who started in the bottom 20% moved to a higher income group. Over the 19-year period (1990 to 2009), 87 percent in the bottom 20% moved up with 21 percent of them reaching the highest income group (the top 20%).
Some Canadians experienced a relative decline in income. Of those in the top 20% in 1990, 36 percent moved down at least one income group by 2009.
The average income of those initially in the bottom 20% in 1990 grew an impressive 635 percent by 2009, while the average income of those initially in the top 20% grew by only 23 percent over the same period.
In 1990, the average income of individuals in the highest income group was 13 times that of individuals initially in the lowest group. By 2009, those who had been in the highest group in 1990 had an average income only twice that of those who had been in the lowest group in 1990.

Most Canadians move up the income ladder.

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Charles Lammam
Amela Karabegovic

Amela Karabegovi is a former Senior Economist of the Fraser Institute. She holds a B.M. (Great Distinction) in General Management
from the University of Lethbridge in Alberta and an M.A. in Economics from Simon Fraser University in British Columbia. She was a coauthor of the Economic Freedom of North America , Economic Freedom of the Arab World , Myths and Realities of TILMA , Transparency of Labour Relations Boards in Canada and the United States , Measuring Labour Markets in Canada and the United States , Measuring the Flexibility of Labour Relations Laws in Canada and the United States , Tax and Expenditure Limitations: The Next Step in Fiscal Discipline , and the Prosperity Series-Ontario .
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Niels Veldhuis

President, Fraser Institute

Niels Veldhuis serves as President of the Fraser Institute, Canada’s most influential think tank.In his over 20-plus-year career in public
policy, Niels has authored six books and more than 50 peer-reviewed studies on a wide range of economic topics. In 2011, he was awarded (along with his co-authors) the prestigious Sir Antony Fisher International Memorial Award for the best-selling book, The Canadian Century.Highly regarded for his opinions and perspectives on major economic and social issues, Niels appears regularly in the media across Canada and the United States. He has written hundreds of commentaries that have appeared in over 50 newspapers, including the Globe and Mail, Wall Street Journal, National Post, and The Economist.Known for his ability to explain matters of economics and government policy in a down-to-earth and easily understood manner, Niels travels widely across North America. His speaking engagements extend to diverse audiences, including business groups, corporate gatherings, community organizations, and students.Niels has had the privilege of sharing the stage and moderating discussions with prominent business and political leaders from around the world. Notable individuals include Prime Minister Stephen Harper, Prime Minister Brian Mulroney, and BC Premier Gordon Campbell. He has also moderated discussions with distinguished Canadian journalists such as Chantal Herbert, Andrew Coyne, and Rex Murphy, as well as diplomats such as Canada’s Ambassador to China and Israel’s Ambassador to Canada. Niels moderated a discussion between United States Presidents Bill Clinton and George W. Bush in 2011 and has facilitated conversations with impactful authors like Mosab Hassan Yousef (author of "Son of Hamas") and Lord Conrad Black.Niels Veldhuis is an alumnus of Simon Fraser University, was one of Vancouver’s Top 40 under 40 by Business in Vancouver in 2010, and is a member of the Young Presidents’ Organization (YPO).
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