measuring income mobility

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Family ‘income mobility’ data—a cup at least half full

More than 60 per cent moved out of the bottom and fewer than 60 per cent stayed at the top.


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Most Canadians who experience low income do so for only a short period of time over the course of their lives.


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Thanks to Canada’s high level of economic mobility, people do not stay at a single income level their entire lives.


9:00AM
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From 1993 to 2003, nine of every 10 Canadians who started out in the lowest income group moved up to higher income groups.

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Some columnists regularly help influence the general public’s view on important social issues. Indeed, they are opinion-shapers. So it’s unfortunate when they get things wrong—particularly when the intended audience is young and impressionable.


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Given the continuous stream of media stories highlighting growing income inequality, it’s understandable that Canadians are worried about the implications. Thankfully however, the story of rapidly rising income inequality in Canada is just that, a great fictional tale.


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Responses from a number of prominent Canadians to the Fraser Institute’s recent study, Measuring Income Mobility in Canada, reveal a great deal about the differing views on social policy and the state of the debate regarding inequality.


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The perennial debate regarding income inequality ebbs and flows but never disappears. For a variety of reasons, including the backlash against corporate bailouts in 2009 (well deserved), the election and re-election of Barack Obama, and a deluge of reports spanning the political spectrum, income inequality has vaulted to the front of the public’s concerns. Unfortunately, the discussion of inequality is almost always fundamentally misstated because it ignores income mobility.