Income Distribution and Inequality



Income Distribution and Inequality

Introduction

Canada has one of the greatest GDP in the world, being one of the richest nations on the planet. This help it boasts one of the best standards of living for its citizens. Being the owner of the world's leading economies, Canada is also the member of the famous “G7”. The racial, ethnic and gender disparities across a number of places are very deliberate. They are typically found in the major aspects of a person's life like employment levels, incarceration rates, family formation, community violence, health and mental health outcomes along with the education disparity which is the most important factor which leads to the cause of inequality (Osberg, 1994). The wage gap has been noticed not across the racial, ethnic and gender equality only, but also between the countries or skilled, unskilled workers too. A recent survey predicted that.

In terms of gender disparity, the average wage rate of a man is higher than that of a woman, working in same designation. It is estimated that around one-fifth of the differences are unexplainable between men and women. This earning are unexplainable through their vast experience of work, education, characteristics of jobs, or other statistical aspects. Annual and hourly income or wages of a man are generally higher than that of women's. This fact turns out accurate when we compare the average income of men with women workers with the course of 30 years. A disparity is noticed in the wage rate of organizations depending upon the gender differences. They do it in terms of level of education, within racial/ethnic groups and also by occupation.

Critical Analysis

Earning Gaps between Men and Women

Further racial discrimination is also an important factor taken in consideration while having wage disparity. Pay differences in racial aspect can be narrated for a person working in the similar type of profession are large, as are differences between workers of different race/ethnic groups employed in the same occupation. Ethnic diversity is a form of social complexity, customary of most modern societies. Historically, this diversity is a legacy of conquest, have drawn a variety of people under the authority of the dominant ethnic group. In theory, the national state and ethnic diversity are opposed, and in many cases, nation-states attempted to find a solution to the problem of ethnic diversity by the destruction or expulsion of ethnic groups (Saroka, 1999). Lastly the educational, skilled and non skilled workers disparity in all aspects cannot be ignored. There is a vast difference between educational attainment among diverse ethnic and racial groups. These differences vary enormously, and to a modest degree by gender. Pay is typically achieved high in the public sector than in the private sector as the public sector hire more experienced and elder people and private sector counter parts them.

Females

Percentage Difference

Percentage Difference in Income (Male & Female)

Males

Percentage Difference

1976

20200

53.13%

1976

43100

1977

20900

3.47%

48.90%

1977

40900

-5.10%

1978

20800

-0.48%

49.88%

1978

41500

1.47%

1979

20900

0.48%

48.65%

1979

40700

-1.93%

1980

21000

0.48%

48.78%

1980

41000

0.74%

1981

21200

0.95%

46.87%

1981

39900

-2.68%

1982

20800

-1.89%

45.26%

1982

38000

-4.76%

1983

20900

0.48%

45.14%

1983

38100

0.26%

1984

21400

2.39%

42.93%

1984

37500

-1.57%

1985

21500

0.47%

44.01%

1985

38400

2.40%

1986

22300

3.72%

42.67%

1986

38900

1.30%

1987

22500

0.90%

42.60%

1987

39200

0.77%

1988

23000

2.22%

42.79%

1988

40200

2.55%

1989

23700

3.04%

41.19%

1989

40300

0.25%

1990

23000

-2.95%

41.62%

1990

39400

-2.23%

1991

23000

0.00%

39.95%

1991

38300

-2.79%

1992

23400

1.74%

38.26%

1992

37900

-1.04%

1993

23700

1.28%

37.47%

1993

37900

0.00%

1994

23500

-0.84%

39.59%

1994

38900

2.64%

1995

24300

3.40%

36.55%

1995

38300

-1.54%

1996

24200

-0.41%

36.81%

1996

38300

0.00%

1997

24300

0.41%

38.17%

1997

39300

2.61%

1998

25400

4.53%

37.13%

1998

40400

2.80%

1999

25800

1.57%

37.38%

1999

41200

1.98%

2000

26300

1.94%

38.12%

2000

42500

3.16%

2001

26400

0.38%

37.74%

2001

42400

-0.24%

2002

26700

1.14%

37.18%

2002

42500

0.24%

2003

26400

-1.12%

36.99%

2003

41900

-1.41%

2004

26700

1.14%

36.58%

2004

42100

0.48%

2005

27300

2.25%

36.07%

2005

42700

1.43%

2006

27700

1.47%

35.43%

2006

42900

0.47%

In the table above, it is observed that there lies a significant difference in average earnings of women as compared to men. However, this difference cannot be interpreted ...