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Dynamics of Retirement Income Inequality in Canada, 1991-2011

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Abstract

This paper explores trends in retirement income inequality in Canada from 1991 to 2011. Although poverty rates among retired Canadian seniors have mostly stabilized, our research suggests that since the 1990s other measures of income inequality have sharply risen. Using census microdata files (1991–2011) and national-level Canadian statistics, we explore the dynamics of income inequality for Canadian retirees by examining relative income from both private and public sources. We find that levels of private retirement income have dramatically risen for some, thus changing the landscape of income inequality for Canadian seniors. Although Canada’s pension system has remained relatively stable, policy drift and layering (Hacker 2004) have occurred, leading to heightened inequality over time. We argue that public policy offers incomplete protection against new inequalities and social risks now associated with retirement.

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Notes

  1. The age and labour force status refer to the reference week of the census in May for each Statistics Canada census period. However, income for each census refers to the previous year of income. To ensure an unbiased sample, we have removed all individuals in our sample who reported a market income, but also retirement status.

  2. Following Brochu et al. 2014, we must also note that the collection of income by Statistics Canada has changed over time and may have affected the representation of incomes from those in lower socioeconomic positions.

  3. These raw data were extracted from Statistics Canada CANSIM series.

  4. Supplementary analysis confirmed that this group was disproportionately made of newer Canadian immigrants.

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Authors and Affiliations

  1. Department of Sociology, University of Calgary, Calgary, ON, Canada

    Josh Curtis

  2. Department of Sociology, The University of Western Ontario, London, Canada

    Julie McMullin

Authors
  1. Josh Curtis
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  2. Julie McMullin
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Correspondence to Josh Curtis.

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Curtis, J., McMullin, J. Dynamics of Retirement Income Inequality in Canada, 1991-2011. Population Ageing 12, 51–68 (2019). https://doi.org/10.1007/s12062-018-9219-5

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  • DOI: https://doi.org/10.1007/s12062-018-9219-5

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