Policies for Stronger and More Inclusive Growth in Canada
After two decades of solid growth of household disposable income and living standards
more generally, Canadians generally enjoy a high level of well-being. However, disparities
persist – not all population groups have benefitted equally strongly from past improvements
in living standards. Income inequality is close to the OECD average, but the tax and
benefit system is less redistributive than those in most OECD countries. Despite high
social mobility over a number of different dimensions such as health, earnings, social
class or education, middle class self-identification has fallen in recent years. At
the same time, productivity growth has slowed own, limiting the potential for further
improvements in living standards. The slowdown in productivity growth is linked to
a growing divide between high-productivity frontier firms and low-productivity laggards,
as well as a weakening of business dynamism. The cross-cutting challenge presented
by the persistence of multidimensional inequalities and weak productivity growth underlines
the need for a reappraisal of Canada’s policy making process with the aim of fostering
stronger and more inclusive growth.
Published on June 16, 2017Also available in: French
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