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The evolution of the Kuznets curve in Canada

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  • Sébastien Breau
  • Annie Lee

Abstract

Since its original formulation, various extensions of the Kuznets hypothesis have been proposed. In this paper, we make use of a unique panel dataset of Canadian regions to test whether inter‐personal income inequality increases once the initial inverted‐U pattern is completed. Our results support the notion of a sideways S‐shaped curve describing a wavelike decrease to increase shift, with a turning point in the late‐1990s/early‐2000s where inter‐personal inequality across regions “bottoms out” before alternating to an upward‐sloping trajectory. While there are many factors associated with this reversal of trends, we find evidence that a region's size plays a role in explaining the more recent rise in inequality. Desde su formulación original, se han propuesto diversas ampliaciones de la hipótesis de Kuznets. En este artículo se emplea un conjunto único de datos de panel de regiones canadienses para comprobar si la desigualdad de ingresos entre individuos aumenta una vez que se completa el patrón inicial de la U invertida. Los resultados apoyan la noción de una curva lateral en forma de S que describe un desplazamiento de menos a más en forma de onda, con un punto de inflexión a finales de la década de 1990 y principios de la de 2000 en el que la desigualdad entre individuos entre regiones "toca fondo" antes de cambiar a una trayectoria ascendente. Aunque hay muchos factores asociados a esta inversión de tendencias, se encontraron pruebas de que el tamaño de la región desempeña un papel a la hora de explicar el aumento más reciente de la desigualdad. クズネッツの仮説は最初に定式化されて依頼、様々な拡張が提案されてきた。本稿では、カナダの地域のユニークなパネルデータセットを使用して、最初の逆U字パターンが完成すると個人間の所得不平等が拡大するかどうかを検証する。結果から、1990年代後半/2000年代前半の転換点では、地域間における個人間不平等は、曲線が右肩上がりに変わる前に「底を打つ」ことが示された。これはシフトを増加させる波状の減少を示す横方向のS字曲線の概念を支持するものである。この傾向の逆転には多くの要因が関連しているが、我々は地域の規模が近年の不平等の拡大を説明する役割を果たしていることを示すエビデンスを見出した。

Suggested Citation

  • Sébastien Breau & Annie Lee, 2023. "The evolution of the Kuznets curve in Canada," Papers in Regional Science, Wiley Blackwell, vol. 102(4), pages 709-735, August.
    • Handle: RePEc:bla:presci:v:102:y:2023:i:4:p:709-735
    DOI: 10.1111/pirs.12737
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