A Regional Perspective on the Canada-US Standard of Living Comparison

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Abstract

This article compares standards of living and labour productivity for all Canadian provinces and US states over 1995–97, finding that the US standard of living (real GDP per capita) is on average 22 per cent higher than Canada’s and that all US regions exceed the Canadian average. Productivity is identified as the primary driver of living standard differences, with a Spearman rank correlation of 0.92 between productivity and living standards across all 60 jurisdictions. Alberta ranks 18th overall (best Canadian province), followed by Ontario (37th), while most Canadian provinces cluster near the bottom of the combined ranking.

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