Wealth Distribution and the Canadian Middle Class: Historical Evidence and Policy Implications

Abstract

Historical and modern wealth microdata examines the long-term evolution in Canadian wealth inequality. Wealth inequality has increased in recent decades but is more equally distributed than a century ago. The chief beneficiaries of a more “equitable” wealth distribution were the “middle” shares, as represented by the next 40 percent of the distribution after the top 10 percent. Despite the onset of more redistributive government in the twentieth century, the wealth share of the bottom 50 percent has remained low over time and represents a more pressing set of policy and social issues than the middle class.