A Closer Look

Inequality in Canada –  May be larger than previously thought OECD Says

The gap between rich and poor in Canada, and in many developed countries, is wider than previously thought, says a new study from the OECD.

Economists Nicolas Ruiz and Nicolas Woloszko argue in a new working paper that the existing data on income inequality is incomplete because it’s based on household surveys. High-end earners tend to under-report their income in these surveys, they argue.

To fix the problem, the researchers looked at income tax data from the 34 OECD member countries, and then adjusted the data based on these numbers.

“The results point to a significant increase of the level of inequality,” they concluded.

Chosen excerpts by Job Market Monitor. Read the whole story at Canada’s Income Inequality May Be Larger Than Previously Thought: OECD Study

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