Author Description

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. This paper asks which provinces stand out as causing the divergence, and by extending the analysis back to 1926, seeks to determine whether the recent period of divergence is unique. The remainder of this report is structured as follows. Section 2 describes the data used. Section 3 examines classical convergence measures. Section 4 moves beyond the classical structure normally employed in convergence studies to illustrate the heterogeneity of the convergence process across provinces. Section 5 extends the classical convergence measures to take into account the differing patterns of convergence, or lack thereof, across provinces. Section 6 concludes.--Document.