The Income Gap Between Quebeckers and Their Counterparts in Other Canadian Provinces

This study looks at differences between the income and purchasing power of Quebeckers and their counterparts in other Canadian provinces. Based on data from the Statistics Canada Survey of Labour and Income Dynamics and on complementary statistical studies, it sums up the situation in 2009 and trends since 1976. The findings are disturbing for Quebec. The gap with the richest provinces is widening, while that with the poorest provinces is shrinking. While Quebeckers’ lower cost of living does help offset the gap to some extent, this advantage is fading. There are proportionately fewer Quebeckers working, and they work fewer hours than most other Canadians. This explains only part of the problem, however. Quebeckers also earn less per hour worked than their counterparts in other provinces, suggesting that they lag behind in terms of average labour productivity.

Given the relative poverty of Quebec households, net personal federal transfer payments help to narrow the income gap with the richest provinces, although it does remain considerable, nonetheless. The poorest 20% of Quebeckers are slightly better off than their counterparts in the wealthiest provinces, with the exception of Alberta. For all the other groups, however, i.e. the other 80% of the population, Quebec is outpaced by British Columbia, Alberta, the other Prairie provinces and Ontario. Its gap with these provinces increases as income levels rise, in fact. This situation has an impact not only on families and individuals, but also on Quebec society as a whole. The Quebec government spends a great deal per capita, and lacks taxable income in the middle and top layers of the income distribution pyramid. This doubtless has consequences for income tax levels, its dependence on federal transfers and its debt.