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  • Unpacking the details of Manitoba Hydro September 9, 2019
    What would a long view of Manitoba Hydro all entail.  Read report here.
    Canadian Centre for Policy Alternatives
  • CCPA submission to Treasury Board consultation on regulatory modernization September 6, 2019
    On June 29, 2019, the federal government launched a public consultation on initiatives intended to "modernize" the Canadian regulatory system. Interested Canadians were invited to provide input on four current initiatives: Targeted Regulatory Reviews (Round 2) Review of the Red Tape Reduction Act Exploring options to legislate changes to regulator mandates Suggestions for the next […]
    Canadian Centre for Policy Alternatives
  • Join us in November for the 2019 CCPA-BC Gala, featuring Nancy MacLean September 3, 2019
    Tickets are available for our 2019 Annual Gala Fundraiser, which will take place in Vancouver on November 21. This year’s featured speaker will be Nancy MacLean, an award-winning historian and author whose talk, The rise of the radical right: How libertarian intellectuals, billionaires and white supremacists shaped today’s politics, is very timely both in the US and here in […]
    Canadian Centre for Policy Alternatives
  • Report looks at captured nature of BC’s Oil and Gas Commission August 6, 2019
    From an early stage, BC’s Oil and Gas Commission bore the hallmarks of a captured regulator. The very industry that the Commission was formed to regulate had a significant hand in its creation and, too often, the interests of the industry it regulates take precedence over the public interest. This report looks at the evolution […]
    Canadian Centre for Policy Alternatives
  • Correcting the Record July 26, 2019
    Earlier this week Kris Sims and Franco Terrazzano of the Canadian Taxpayers Federation wrote an opinion piece that was published in the Calgary Sun, Edmonton Sun, Winnipeg Sun, Ottawa Sun and Toronto Sun. The opinion piece makes several false claims and connections regarding the Corporate Mapping Project (CMP), which we would like to correct. The […]
    Canadian Centre for Policy Alternatives
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The Wage Structure, Rents and Urban Inequality in Canada

Richard Florida’s new book, The New Urban Crisis (Basic Books, 2017) takes a careful look at rising inequality in big cities in the United States. He details the fact that many of the winners of today’s economy, the top 1% and top 10%, are located in a small number of “superstar” cities such as New York, Los Angeles, the Bay area, Washington and Boston where well paid jobs in higher education, finance, tech, higher education and entertainment are highly concentrated.

These cities are increasingly polarized between very rich and poor neighbourhoods as the affluent and young professionals return to the city while soaring rents and house prices force the middle-class and many of the poor out to the deteriorating older suburbs.

Similar but less extreme patterns have been found in Canada by David Hulchanski of the University of Toronto and other urban geographers who have documented increased income polarization and erosion of the middle-class and mixed income communities in Toronto in particular.

Statistics Canada recently released data from the Job Vacancy and Wage Survey which show hourly earnings of full-time workers by detailed occupation by city as well as for rural areas. (See CANSIM Table 285-0050.) These provide some insight into the question of whether earnings in Canadian cities are highly polarized.

WAGES BY CITY
Senior Managers Sales and Service Ratio
All $52.40 (100%) $18.85 (100%) 2.8
Halifax $44.10 (84.2%) $17.50 (92.8%) 2.5
Montreal $49.60 (94.7%) $20.90 (110.8%) 2.4
Toronto $63.70 (121.6%) $20.35 (108.0%) 3.1
Calgary $62.50 (119.3%) $19.30 (102.4%) 3.2
Vancouver $55.30 (105.5%) $19.10 (101.3%) 2.9
Hourly Wage of Full Time Workers. CANSIM 285-0050

 

The Table shows earnings of the highest and lowest paid broad occupational categories, senior managers, and sales and service workers, for Canada and for selected cities. As shown the ratio of the highest to the lowest paid group is 2.8 at the national level, meaning that senior managers earn on average 2.8 times as much as sales and service workers. But the ratio is significantly greater in Calgary (3.2) and Toronto (3.1)

Unsurprisingly, the most highly paid senior managers are to be found in Toronto and Calgary which are major financial centres and the home of many corporate head offices.

What is interesting is the relatively more uniform level of hourly earnings of sales and service workers. These are only very modestly above the national average in Toronto (108.0%), Calgary (102.4%) and Vancouver (101.3%.) And sales and service wages in these cities actually lag behind Montreal.

House prices in Vancouver and Toronto are, of course, far higher than the national average, as are rents. CMHC data show that the average monthly rent of a two bedroom apartment in Toronto is $1327 and $1450 in Vancouver (and $1258 in Calgary), compared to a national average of $962 per month and just $668 in Montreal.

Richard Florida highlights the low incomes of urban service workers in many big US cities after adjusting for inflated rents. This is clearly also a problem in some of Canada’s most successful big cities.

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