Provincial Convergence and Divergence in Canada, 1926 to 2011 - ARCHIVED

Articles and reports: 11F0027M2015096


This analysis examines provincial income convergence in Canada from 1926 to 2011 using National Accounts-based estimates of per capita household disposable income. Household disposable income is the income available for consumption and saving, and is, therefore, closely aligned with material well-being.

Convergence is a long-run tendency for income levels between economies to become more similar. In its most literal sense, convergence implies that all provincial per capita disposable incomes across Canada will eventually reach the same level. Less exacting forms of convergence allow for differences in per capita income levels due to structural differences across provinces. Factors such as resource endowments, urbanization, human capital, and industry structure are believed to be sources of such differences.

Issue Number: 2015096
Author(s): Brown, W. Mark; Macdonald, Ryan
FormatRelease dateMore information
HTMLFebruary 12, 2015
PDFFebruary 12, 2015