A Comparison of Inequality and Living Standards in Canada and the United States Using an Extended Income Measure

Edward N. Wolff, Ajit Zacharias, Thomas Masterson, Selçuk Eren, Andrew Sharpe

    Research output: Contribution to journalArticlepeer-review

    Abstract

    We use the Levy Institute Measure of Economic Well-Being (LIMEW) to compare living standards and inequality in Canada and the United States. LIMEW includes non-cash government transfers, public consumption, annuitized wealth, and household production and nets out all personal taxes. We compare our results to the standard US Census measure, gross money income (MI). We expected a smaller inter-country gap in median LIMEW than median MI and relatively lower LIMEW inequality in Canada because of the more extensive Canadian welfare state. Instead, we found that the measured gap in the level and inequality of economic well-being was higher based on LIMEW than MI.

    Original languageEnglish (US)
    Pages (from-to)171-192
    Number of pages22
    JournalEastern Economic Journal
    Volume42
    Issue number2
    DOIs
    StatePublished - Mar 1 2016

    Keywords

    • income
    • inequality
    • international comparisons
    • living standards
    • well-being

    ASJC Scopus subject areas

    • Economics and Econometrics

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