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Indicators of Well-being in Canada


Financial Security - Income Distribution

Status

  1. Standard of Living
  2. Family Income
  3. Retirement Income
  4. Low Income Incidence
  5. Low Income Persistence
  6. Net Worth (Wealth)

Life events

  1. Personal Bankruptcies

Key influences

  1. Income Distribution
Definition and Methodology | Display High Contrast Charts

Relevance

The well-being of Canadian families depends on both their level of income and the distribution of income within the population. Differences in the distribution of income, or 'income disparities', are often considered a measure of a society's fairness. High income disparities are often associated with high unemployment but may also indicate that large numbers of people are in low-paid and low-skilled jobs.

Summary

  • National Picture —  Since 1995, the after-tax income of the top income group rose much more than the income of other income groups. Consequently, income disparities increased in Canada between 1995 and 2010.
  • Regions — In 2010, the highest income disparities between the top 20% and the bottom 20% income groups were in British Columbia and Ontario. The lowest were in Prince Edward Island.
  • International Picture — The extent of income disparity in Canada was comparable to that of many G7 and OECD member countries.
  • Family-adjusted after-tax income — Adjusting after-tax income for family size and composition reveals smaller income disparities among income groups than for unadjusted after-tax income, although trends were similar over time.

National Picture

In 2010, the average after-tax income in Canada for the bottom 20% of family units (after-tax income of $24,300 or less) was $14,600, and for the top 20% (after-tax income of $89,300 or more) was $135,500. The difference between these two groups has increased in recent years.

Income disparities (expressed in 2010 constant dollars) rose between 1995 and 2010. While average after-tax incomes increased by 12% for families with incomes in the bottom 20% and by 23% for families with incomes in the middle 60%, it rose by 37% for those in the top income group. Consequently, the difference between the top 20% income group and the bottom 20% rose by 41%, increasing from $85,700 in 1995 to $120,900 in 2010. Similarly, the difference between the average income of the top 20% and the middle 60% increased from $56,500 to $83,533, or by 48% over the same period.


This Chart contains data for Average after-tax income, by income group, Canada, 1976-2010. Information is available in table below 2010 (Bottom 20%) = 14,600 2009 (Bottom 20%) = 14,800 2008 (Bottom 20%) = 14,900 2007 (Bottom 20%) = 14,500 2006 (Bottom 20%) = 13,900 2005 (Bottom 20%) = 13,300 2004 (Bottom 20%) = 13,400 2003 (Bottom 20%) = 13,500 2002 (Bottom 20%) = 13,600 2001 (Bottom 20%) = 13,200 2000 (Bottom 20%) = 12,300 1999 (Bottom 20%) = 12,300 1998 (Bottom 20%) = 12,000 1997 (Bottom 20%) = 12,100 1996 (Bottom 20%) = 12,600 1995 (Bottom 20%) = 13,000 1994 (Bottom 20%) = 13,000 1993 (Bottom 20%) = 12,900 1992 (Bottom 20%) = 12,900 1991 (Bottom 20%) = 13,100 1990 (Bottom 20%) = 13,700 1989 (Bottom 20%) = 14,600 1988 (Bottom 20%) = 14,200 1987 (Bottom 20%) = 13,900 1986 (Bottom 20%) = 13,700 1985 (Bottom 20%) = 13,500 1984 (Bottom 20%) = 12,900 1983 (Bottom 20%) = 12,500 1982 (Bottom 20%) = 13,400 1981 (Bottom 20%) = 13,800 1980 (Bottom 20%) = 13,000 1979 (Bottom 20%) = 12,900 1978 (Bottom 20%) = 12,300 1977 (Bottom 20%) = 11,700 1976 (Bottom 20%) = 12,600 2010 (Middle 60%) = 51,967 2009 (Middle 60%) = 51,900 2008 (Middle 60%) = 51,733 2007 (Middle 60%) = 51,167 2006 (Middle 60%) = 49,567 2005 (Middle 60%) = 48,333 2004 (Middle 60%) = 47,533 2003 (Middle 60%) = 47,000 2002 (Middle 60%) = 47,133 2001 (Middle 60%) = 47,033 2000 (Middle 60%) = 45,367 1999 (Middle 60%) = 44,767 1998 (Middle 60%) = 43,233 1997 (Middle 60%) = 41,900 1996 (Middle 60%) = 41,800 1995 (Middle 60%) = 42,200 1994 (Middle 60%) = 42,233 1993 (Middle 60%) = 42,100 1992 (Middle 60%) = 43,000 1991 (Middle 60%) = 42,800 1990 (Middle 60%) = 44,767 1989 (Middle 60%) = 46,600 1988 (Middle 60%) = 45,900 1987 (Middle 60%) = 44,800 1986 (Middle 60%) = 45,067 1985 (Middle 60%) = 45,067 1984 (Middle 60%) = 44,500 1983 (Middle 60%) = 44,267 1982 (Middle 60%) = 45,867 1981 (Middle 60%) = 47,433 1980 (Middle 60%) = 48,133 1979 (Middle 60%) = 47,300 1978 (Middle 60%) = 47,667 1977 (Middle 60%) = 47,500 1976 (Middle 60%) = 46,967 2010 (Top 20%) = 135,500 2009 (Top 20%) = 135,000 2008 (Top 20%) = 134,700 2007 (Top 20%) = 132,700 2006 (Top 20%) = 127,400 2005 (Top 20%) = 124,400 2004 (Top 20%) = 123,200 2003 (Top 20%) = 119,900 2002 (Top 20%) = 121,400 2001 (Top 20%) = 121,200 2000 (Top 20%) = 116,500 1999 (Top 20%) = 111,800 1998 (Top 20%) = 108,700 1997 (Top 20%) = 102,100 1996 (Top 20%) = 100,300 1995 (Top 20%) = 98,700 1994 (Top 20%) = 98,500 1993 (Top 20%) = 97,500 1992 (Top 20%) = 100,400 1991 (Top 20%) = 100,200 1990 (Top 20%) = 102,700 1989 (Top 20%) = 105,400 1988 (Top 20%) = 103,800 1987 (Top 20%) = 102,200 1986 (Top 20%) = 102,700 1985 (Top 20%) = 102,100 1984 (Top 20%) = 100,400 1983 (Top 20%) = 100,700 1982 (Top 20%) = 101,800 1981 (Top 20%) = 103,400 1980 (Top 20%) = 104,900 1979 (Top 20%) = 102,900 1978 (Top 20%) = 104,700 1977 (Top 20%) = 101,500 1976 (Top 20%) = 106,600 (2010 constant dollars) Average after-tax income, by income group, Canada, 1976-2010

Source: HRSDC calculations based on Statistics Canada. Market, total and after-tax income, by economic family type and after-tax income quintiles, 2010 constant dollars, annual (CANSIM Table 202-0703). Ottawa: Statistics Canada, 2012.


Warning: This data table may contain very wide content. Horizontal scrolling may be necessary.

Average after-tax income, by income group, Canada, 1976-2010 (2010 constant dollars)
19761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010
Bottom 20%12,60011,70012,30012,90013,00013,80013,40012,50012,90013,50013,70013,90014,20014,60013,70013,10012,90012,90013,00013,00012,60012,10012,00012,30012,30013,20013,60013,50013,40013,30013,90014,50014,90014,80014,600
Middle 60%46,96747,50047,66747,30048,13347,43345,86744,26744,50045,06745,06744,80045,90046,60044,76742,80043,00042,10042,23342,20041,80041,90043,23344,76745,36747,03347,13347,00047,53348,33349,56751,16751,73351,90051,967
Top 20%106,600101,500104,700102,900104,900103,400101,800100,700100,400102,100102,700102,200103,800105,400102,700100,200100,40097,50098,50098,700100,300102,100108,700111,800116,500121,200121,400119,900123,200124,400127,400132,700134,700135,000135,500

Income disparities shown as ratios (i.e., the top income group divided by the lowest or middle income group) reveal that, depending on the year, families in the top 20% received between 7.2 and 9.5 times more than families in the bottom 20% in the period 1976 to 2010. In the same period, families in the top 20% had an income 2.1 to 2.6 times higher than the middle 60%. Income disparities increased in the mid 1990s and have stayed relatively high ever since. In 2010, the top 20% had an average income 9.3 times that of the bottom 20%, and 2.6 times that of the middle 60%.


This Chart contains data for Average income of the top 20% group relative to other groups, Canada, 1976-2010. Information is available in table below 2010 (Top 20% to bottom 20%) = 9.281 2009 (Top 20% to bottom 20%) = 9.122 2008 (Top 20% to bottom 20%) = 9.04 2007 (Top 20% to bottom 20%) = 9.152 2006 (Top 20% to bottom 20%) = 9.165 2005 (Top 20% to bottom 20%) = 9.353 2004 (Top 20% to bottom 20%) = 9.194 2003 (Top 20% to bottom 20%) = 8.881 2002 (Top 20% to bottom 20%) = 8.926 2001 (Top 20% to bottom 20%) = 9.182 2000 (Top 20% to bottom 20%) = 9.472 1999 (Top 20% to bottom 20%) = 9.089 1998 (Top 20% to bottom 20%) = 9.058 1997 (Top 20% to bottom 20%) = 8.438 1996 (Top 20% to bottom 20%) = 7.96 1995 (Top 20% to bottom 20%) = 7.592 1994 (Top 20% to bottom 20%) = 7.577 1993 (Top 20% to bottom 20%) = 7.558 1992 (Top 20% to bottom 20%) = 7.783 1991 (Top 20% to bottom 20%) = 7.649 1990 (Top 20% to bottom 20%) = 7.496 1989 (Top 20% to bottom 20%) = 7.219 1988 (Top 20% to bottom 20%) = 7.31 1987 (Top 20% to bottom 20%) = 7.353 1986 (Top 20% to bottom 20%) = 7.496 1985 (Top 20% to bottom 20%) = 7.563 1984 (Top 20% to bottom 20%) = 7.783 1983 (Top 20% to bottom 20%) = 8.056 1982 (Top 20% to bottom 20%) = 7.597 1981 (Top 20% to bottom 20%) = 7.493 1980 (Top 20% to bottom 20%) = 8.069 1979 (Top 20% to bottom 20%) = 7.977 1978 (Top 20% to bottom 20%) = 8.512 1977 (Top 20% to bottom 20%) = 8.675 1976 (Top 20% to bottom 20%) = 8.46 2010 (Top 20% to middle 60%) = 2.607 2009 (Top 20% to middle 60%) = 2.601 2008 (Top 20% to middle 60%) = 2.604 2007 (Top 20% to middle 60%) = 2.593 2006 (Top 20% to middle 60%) = 2.57 2005 (Top 20% to middle 60%) = 2.574 2004 (Top 20% to middle 60%) = 2.592 2003 (Top 20% to middle 60%) = 2.551 2002 (Top 20% to middle 60%) = 2.576 2001 (Top 20% to middle 60%) = 2.577 2000 (Top 20% to middle 60%) = 2.568 1999 (Top 20% to middle 60%) = 2.497 1998 (Top 20% to middle 60%) = 2.514 1997 (Top 20% to middle 60%) = 2.437 1996 (Top 20% to middle 60%) = 2.4 1995 (Top 20% to middle 60%) = 2.339 1994 (Top 20% to middle 60%) = 2.332 1993 (Top 20% to middle 60%) = 2.316 1992 (Top 20% to middle 60%) = 2.335 1991 (Top 20% to middle 60%) = 2.341 1990 (Top 20% to middle 60%) = 2.294 1989 (Top 20% to middle 60%) = 2.262 1988 (Top 20% to middle 60%) = 2.261 1987 (Top 20% to middle 60%) = 2.281 1986 (Top 20% to middle 60%) = 2.279 1985 (Top 20% to middle 60%) = 2.266 1984 (Top 20% to middle 60%) = 2.256 1983 (Top 20% to middle 60%) = 2.275 1982 (Top 20% to middle 60%) = 2.219 1981 (Top 20% to middle 60%) = 2.18 1980 (Top 20% to middle 60%) = 2.179 1979 (Top 20% to middle 60%) = 2.175 1978 (Top 20% to middle 60%) = 2.197 1977 (Top 20% to middle 60%) = 2.137 1976 (Top 20% to middle 60%) = 2.27 Average income of the top 20% group relative to other groups, Canada, 1976-2010

Note: Average incomes were calculated using the average after-tax family income.

Source: HRSDC calculations based on Statistics Canada. Market, total and after-tax income, by economic family type and after-tax income quintiles, 2010 constant dollars, annual (CANSIM Table 202-0703). Ottawa: Statistics Canada, 2012.


Warning: This data table may contain very wide content. Horizontal scrolling may be necessary.

Average income of the top 20% group relative to other groups, Canada, 1976-2010
19761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010
Top 20% to bottom 20%8.468.6758.5127.9778.0697.4937.5978.0567.7837.5637.4967.3537.317.2197.4967.6497.7837.5587.5777.5927.968.4389.0589.0899.4729.1828.9268.8819.1949.3539.1659.1529.049.1229.281
Top 20% to middle 60%2.272.1372.1972.1752.1792.182.2192.2752.2562.2662.2792.2812.2612.2622.2942.3412.3352.3162.3322.3392.42.4372.5142.4972.5682.5772.5762.5512.5922.5742.572.5932.6042.6012.607

Regions

Using the ratio of the top 20% to the bottom 20%, in 2010 income disparities were lowest in Prince Edward Island and highest in British Columbia. In Prince Edward Island, families in the top 20% had an income 6.4 times higher than those in the bottom 20%. In British Columbia, families in the top 20% had incomes 11.3 times more than families in the botton 20%.


This Chart contains data for Ratio of the average income of the top to bottom 20% income groups, by region, 2010. Information is available in table below BC = 11.3 AB = 8.7 SK = 8.9 MB = 7.6 ON = 9.4 QC = 8.2 NB = 7.7 NS = 8.0 PE = 6.4 NL = 8.1 CAN = 9.3 Ratio of the average income of the top to bottom 20% income groups, by region, 2010

Note: Average incomes were calculated using the average after-tax family income.

Source: HRSDC calculations based on Statistics Canada. Market, total and after-tax income, by economic family type and after-tax income quintiles, 2010 constant dollars, annual (CANSIM Table 202-0703). Ottawa: Statistics Canada, 2012.


Warning: This data table may contain very wide content. Horizontal scrolling may be necessary.

Ratio of the average income of the top to bottom 20% income groups, by region, 2010
CANNLPENSNBQCONMBSKABBC
9.38.16.48.07.78.29.47.68.98.711.3

International Picture

Another way of assessing income disparities is to assign a value to disparity. This value is called the Gini coefficient. Commonly used worldwide, the Gini coefficient ranges between 0 (no disparity) and 1 (extreme disparity). (See Income Distribution for details.)

Using the Gini coefficient, income disparity in Canada had a value of 0.324 in 2009. Canada's Gini coefficient was the third lowest among the G7 countries and was slightly higher than the average for OECD countries. Among OECD members, the Gini coefficient ranged from 0.230 in Slovenia to 0.496 in Chile. Canada's Gini coefficient was higher than those of many Northern and Eastern European countries, but was lower than those of the United States, Turkey and Latin America OECD members (Mexico and Chile).


This Chart contains data for Income disparity, G7 countries and OECD average, 2006, 2008 and 2009. Information is available in table below United States (2008) = 0.378 United Kingdom (2008) = 0.342 Italy (2008) = 0.337 Japan (2006) = 0.329 Canada (2009) = 0.324 OECD = 0.314 Germany (2008) = 0.295 France (2008) = 0.293 (Gini coefficient) Income disparity, G7 countries and OECD average, 2006, 2008 and 2009

Source: Organization for Economic Co-operation and Development (OECD). Statistics from A to Z: Income Inequality. Available from: OECD Stat (cited March 26, 2012).


Warning: This data table may contain very wide content. Horizontal scrolling may be necessary.

Income disparity, G7 countries and OECD average, 2006, 2008 and 2009 (Gini coefficient)
France (2008)Germany (2008)OECDCanada (2009)Japan (2006)Italy (2008)United Kingdom (2008)United States (2008)
0.2930.2950.3140.3240.3290.3370.3420.378

Family-adjusted After-tax Income

A family's financial well-being depends not only on the level of income but also on the number of family members and family composition. Family-adjusted income is a measure that allows for comparisons free of differences in family size and composition among income groups. (See Income Distribution for more details on family-adjusted after-tax income).

In 2010, the average family-adjusted after-tax income was $15,200 for families in the bottom 20% income group, $38,300 for families in the middle 60%, and $84,700 for families in the top 20%. Income disparities rose after 1995. The difference between the top 20% income group and the bottom 20% increased from $47,800 in 1995 to $69,500 in 2010 (in 2010 constant dollars). Similarly, the difference between the top 20% income group and the middle 60% increased from about $30,433 to $46,400 over the same period.


This Chart contains data for Average family-adjusted after-tax income, by income group, Canada, 1976-2010. Information is available in table below 2010 (Bottom 20%) = 15,200 2009 (Bottom 20%) = 15,000 2008 (Bottom 20%) = 15,200 2007 (Bottom 20%) = 15,000 2006 (Bottom 20%) = 14,400 2005 (Bottom 20%) = 13,700 2004 (Bottom 20%) = 13,500 2003 (Bottom 20%) = 13,500 2002 (Bottom 20%) = 13,400 2001 (Bottom 20%) = 13,400 2000 (Bottom 20%) = 12,600 1999 (Bottom 20%) = 12,500 1998 (Bottom 20%) = 12,000 1997 (Bottom 20%) = 11,700 1996 (Bottom 20%) = 11,900 1995 (Bottom 20%) = 12,200 1994 (Bottom 20%) = 12,300 1993 (Bottom 20%) = 12,300 1992 (Bottom 20%) = 12,200 1991 (Bottom 20%) = 12,500 1990 (Bottom 20%) = 12,900 1989 (Bottom 20%) = 13,900 1988 (Bottom 20%) = 13,600 1987 (Bottom 20%) = 13,000 1986 (Bottom 20%) = 12,800 1985 (Bottom 20%) = 12,400 1984 (Bottom 20%) = 11,800 1983 (Bottom 20%) = 11,800 1982 (Bottom 20%) = 12,200 1981 (Bottom 20%) = 12,700 1980 (Bottom 20%) = 12,500 1979 (Bottom 20%) = 12,000 1978 (Bottom 20%) = 11,900 1977 (Bottom 20%) = 11,300 1976 (Bottom 20%) = 11,700 2010 (Middle 60%) = 38,300 2009 (Middle 60%) = 38,167 2008 (Middle 60%) = 38,067 2007 (Middle 60%) = 37,400 2006 (Middle 60%) = 36,067 2005 (Middle 60%) = 35,400 2004 (Middle 60%) = 34,600 2003 (Middle 60%) = 33,967 2002 (Middle 60%) = 34,000 2001 (Middle 60%) = 33,900 2000 (Middle 60%) = 32,733 1999 (Middle 60%) = 32,067 1998 (Middle 60%) = 30,900 1997 (Middle 60%) = 29,733 1996 (Middle 60%) = 29,500 1995 (Middle 60%) = 29,567 1994 (Middle 60%) = 29,600 1993 (Middle 60%) = 29,367 1992 (Middle 60%) = 30,000 1991 (Middle 60%) = 29,767 1990 (Middle 60%) = 31,200 1989 (Middle 60%) = 32,133 1988 (Middle 60%) = 31,433 1987 (Middle 60%) = 30,567 1986 (Middle 60%) = 30,500 1985 (Middle 60%) = 30,333 1984 (Middle 60%) = 29,767 1983 (Middle 60%) = 29,333 1982 (Middle 60%) = 30,133 1981 (Middle 60%) = 30,967 1980 (Middle 60%) = 31,267 1979 (Middle 60%) = 30,633 1978 (Middle 60%) = 30,500 1977 (Middle 60%) = 30,333 1976 (Middle 60%) = 29,667 2010 (Top 20%) = 84,700 2009 (Top 20%) = 84,400 2008 (Top 20%) = 84,300 2007 (Top 20%) = 82,500 2006 (Top 20%) = 79,500 2005 (Top 20%) = 77,300 2004 (Top 20%) = 76,900 2003 (Top 20%) = 74,300 2002 (Top 20%) = 75,100 2001 (Top 20%) = 74,700 2000 (Top 20%) = 71,800 1999 (Top 20%) = 68,100 1998 (Top 20%) = 66,300 1997 (Top 20%) = 62,300 1996 (Top 20%) = 61,200 1995 (Top 20%) = 60,000 1994 (Top 20%) = 59,600 1993 (Top 20%) = 59,000 1992 (Top 20%) = 60,800 1991 (Top 20%) = 60,800 1990 (Top 20%) = 61,700 1989 (Top 20%) = 63,400 1988 (Top 20%) = 62,100 1987 (Top 20%) = 61,100 1986 (Top 20%) = 61,400 1985 (Top 20%) = 60,800 1984 (Top 20%) = 59,800 1983 (Top 20%) = 59,600 1982 (Top 20%) = 60,000 1981 (Top 20%) = 60,800 1980 (Top 20%) = 61,300 1979 (Top 20%) = 59,300 1978 (Top 20%) = 60,300 1977 (Top 20%) = 57,800 1976 (Top 20%) = 60,600 (2010 constant dollars) Average family-adjusted after-tax income, by income group, Canada, 1976-2010

Source: HRSDC calculations based on Statistics Canada. Market, total and after-tax income of individuals, where each individual is represented by their adjusted and unadjusted economic family income, by economic family type and adjusted after-tax income quintiles, 2010 constant dollars (CANSIM Table 202-0706). Ottawa: Statistics Canada, 2012.


Warning: This data table may contain very wide content. Horizontal scrolling may be necessary.

Average family-adjusted after-tax income, by income group, Canada, 1976-2010 (2010 constant dollars)
19761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010
Bottom 20%11,70011,30011,90012,00012,50012,70012,20011,80011,80012,40012,80013,00013,60013,90012,90012,50012,20012,30012,30012,20011,90011,70012,00012,50012,60013,40013,40013,50013,50013,70014,40015,00015,20015,00015,200
Middle 60%29,66730,33330,50030,63331,26730,96730,13329,33329,76730,33330,50030,56731,43332,13331,20029,76730,00029,36729,60029,56729,50029,73330,90032,06732,73333,90034,00033,96734,60035,40036,06737,40038,06738,16738,300
Top 20%60,60057,80060,30059,30061,30060,80060,00059,60059,80060,80061,40061,10062,10063,40061,70060,80060,80059,00059,60060,00061,20062,30066,30068,10071,80074,70075,10074,30076,90077,30079,50082,50084,30084,40084,700

When taking family size and composition into account, income disparities were smaller. Yet the trends over time were similar. Compared with unadjusted income (see the National Picture section), family-adjusted after-tax income data show smaller differences among income groups. Moreover, income disparities expressed as ratios were much smaller using the family-adjusted income. In 2010, families in the top 20% income group received an income 5.6 times higher on average than those in the bottom 20% (compared with 9.3 for unadjusted after-tax income). Similarly, families in the top 20% income group had, on average, an income 2.2 times higher than those in the middle 60% (compared with 2.6 times higher for unadjusted after-tax income).

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Date Modified:
2013-05-23