Economic Insights: Tracking Recent Changes in Absolute Income Mobility in Canada

From Statistics Canada:

The study is based on data from the Intergenerational Income Database, an administrative database that links children to parents using information on family structure at the time the children were 16 to 19 years of age. It also contains information on the income of children and their parents, from 1978 to 2014.

Of those who reached 30 years of age between 2000 and 2014, 59% to 67% (depending on the year being looked at) had a family income that matched or exceeded that of their parents when they were the same age. Variations within this range appear to correspond with changes in general economic conditions in Canada over that period.

The study also highlights changes in economic opportunities by income levels. Children with parents in the lowest income percentiles were most likely to have a higher family income at 30 years of age than their parents did at the same age, while the opposite was true for children whose parents were in the highest income percentiles. For children whose parents were between the 20th to 80th percentiles, rates of income mobility were higher among the 1975, 1980 and 1984 birth cohorts than for the group born in 1970.

Read the whole research article here: