Not exact matches
This does not mean that
income per capita was falling, but it does indicate that the top countries were setting the bar higher every year, thereby further widening the
income gap with Canada.
Therefore, improving productivity in Canada is the only sustainable way to reduce the sizable
gap between Canadian and U.S.
income per capita that has emerged in recent decades.
In the 1970s, Canada's
income per capita was almost double that of Ireland; by 2007, Ireland's
income per capita exceeded Canada's by US$ 5,000 in 2007, although the
gap slipped to only US$ 800 by 2012.
To get an idea of the role each component of
income per capita plays in the Canada — U.S.
income gap, we used the equation shown above, substituting U.S. data for one component at a time, and keeping the country data for the other four components.
For example, to calculate what portion of the Canada-U.S.
gap in
income per capita is due to Canada's lower labour productivity, we substitute U.S. labour productivity into the equation but keep Canadian data for the other four components (hours worked, unemployment, labour force participation, and demographic structure).
However, even with adjustments to account for these shortcomings, productivity still contributes to a significant portion of the
gap in
income per capita with the United States.
And a recent report by the Institute for Competitiveness and Prosperity shows that if the GDP
per capita gap between the US and Canada were closed, Canadian families would have $ 12,200 more in annual personal disposable
income.
The already noticeable
gap in
per capita income between the rich and the poor (whether nations or individuals) will continue to widen.
SRES scenarios also assume convergence of national
per capita incomes, which is contrary to historical tendencies for
income gaps between the rich and the poor to increase.