Canadian income gap narrows, temporarily at least

by Eric Beauchesne — May 6, 2008

OTTAWA -- The rich didn't get richer in 2006, but the poor did, putting a halt -- at least temporarily -- to a widening income gap in Canada.

As a result of strong economic growth and gains in employment, pre-tax family incomes rose by 2.1% after inflation, Statistics Canada reported Monday. And thanks to increases in government transfers, after-tax incomes also rose by 2.1%.

The report is in contrast to last week's highly publicized census, in which the federal agency reported that earnings of individual Canadians for 2005 had changed little over the past quarter century, and had declined for those at the bottom of the income ladder but rose for those at the top.

In Monday's report, Statistics Canada said families - especially those at the bottom of the income ladder, and those in Alberta and Saskatchewan - saw strong growth in their earnings in 2006, it said.

"After-tax income improved for families in all five income groups, except for those at the top, where it remained stable," the agency said.

Source:National Post News