Regional income disparities in Canada: Exploring the geographical dimensions of an old debate

Abstract

The existing literature on convergence in Canada largely ignores the underlying geographical dimensions of regional disparities. By using income measures developed from census micro-data files to analyze patterns of convergence across census divisions, we show that regional disparities are increasingly clustered across the Canadian space-economy along (1) East–West and (2) urban–rural gradients. Rural census divisions in the Eastern provinces, in particular, are showing increased signs of distress in terms of differences in levels and growth rates of incomes with other regions in the country. Such findings have important policy implications which are briefly discussed.