--- canonical_url: "https://csls.ca/research/a-comparison-of-inequality-and-living-standards-in-canada-and-the-united-states-using-an-expanded-measure-of-economic-well-being/" title: "A Comparison of Inequality and Living Standards in Canada and the United States Using an Expanded Measure of Economic Well-Being" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T13:17:16+00:00" date_modified: "2026-07-02T13:17:16+00:00" post_type: "research" summary: "" post_tag: - "Canada" - "economic well-being" - "Gini coefficient" - "household production" - "income inequality" - "LIMEW" - "public consumption" - "United States" country_focus: - "Canada" - "United States" province_region: - "National" research_theme: - "Economic Well-Being" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # A Comparison of Inequality and Living Standards in Canada and the United States Using an Expanded Measure of Economic Well-Being Canonical URL: https://csls.ca/research/a-comparison-of-inequality-and-living-standards-in-canada-and-the-united-states-using-an-expanded-measure-of-economic-well-being/ # A Comparison of Inequality and Living Standards in Canada and the United States Using an Expanded Measure of Economic Well-Being [Download full PDF report](https://csls.ca/pdf/csls2012-01-1.pdf) Cite this report × Cite this report as: Wolff, Edward, Ajit Zacharias, Thomas Masterson, Selçuk Eren, Andrew Sharpe, and Elspeth Hazell. 2012. “A Comparison of Inequality and Living Standards in Canada and the United States Using an Expanded Measure of Economic Well-Being.” CSLS Research Report 2012-01. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/a-comparison-of-inequality-and-living-standards-in-canada-and-the-united-states-using-an-expanded-measure-of-economic-well-being/ ## Authors: - Edward Wolff New York University, Department of Economics - Ajit Zacharias Levy Economics Institute of Bard College - Thomas Masterson Levy Economics Institute of Bard College - Selçuk Eren Levy Economics Institute of Bard College; - Andrew Sharpe Centre for the Study of Living Standards (CSLS) - Elspeth Hazell Levy Economics Institute of Bard College ## Report 2012-01 January 2012 67 pages ## Related research [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Apprenticeship in Canada: A Training System Under Siege? Andrew Sharpe December 1999 | Report 1999-03 | 59 pages](https://csls.ca/research/apprenticeship-in-canadaa-training-system-under-siege/) [A Survey of Indicators of Economic and Social Well-being Andrew Sharpe July 1999 | Report 1999-cprn | 72 pages](https://csls.ca/research/a-survey-of-indicators-of-economic-and-social-well-being/) [Creating a More Efficient Labour Market Centre for the Study of Living Standards (CSLS) June 2001 | Report 2001-02 | 147 pages](https://csls.ca/research/creating-a-more-efficient-labour-market/) [The Impact of the National Child Benefit Supplement on the Low Income Status of Canadian Families with Children: The SPSD/M Results Centre for the Study of Living Standards (CSLS) June 2002 | Report 2002-01 | 59 pages](https://csls.ca/research/the-impact-of-the-national-child-benefit-supplement-on-the-low-income-status-of-canadian-families-with-children-the-spsd-m-results/) [Productivity Trends in Natural Resources Industries in Canada Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-01a | 69 pages](https://csls.ca/research/productivity-trends-in-natural-resources-industries-in-canada/) [Productivity in the Forest Products Sector: A Review of the Literature Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-02 | 28 pages](https://csls.ca/research/productivity-in-the-forest-products-sector-a-review-of-the-literature/) [An Analysis of Productivity Trends in the Forest Products Sector in Canada Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-01b | 64 pages](https://csls.ca/research/an-analysis-of-productivity-trends-in-the-forest-products-sector-in-canada/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn We use the Levy Institute Measure of Economic Well-being (LIMEW), the most comprehensive income measure available to date, to compare economic well-being in Canada and the United States in the first decade of the 21st century. This study represents the first international comparison based on LIMEW, which differs from the standard measure of gross money income (MI) in that it includes noncash government transfers, public consumption, income from wealth, and household production, and nets out all personal taxes. We find that, relative to the United States, median equivalent LIMEW was 11 percent lower in Canada in 2000. By 2005, this gap had narrowed to 7 percent, while the difference in median equivalent MI was only 3 percent. Inequality was notably lower in Canada, with a Gini coefficient of 0.285 for equivalent LIMEW in 2005, compared to a US coefficient of 0.376—a gap that primarily reflects the greater importance of income from wealth in the States. However, the difference in Gini coefficients declined between 2000 and 2005. We also find that the elderly were better off relative to the nonelderly in the United States, but that high school graduates did better relative to college graduates in Canada. Nous utilisons la mesure du bien-être économique du Levy Institute (LIMEW), la mesure de revenu la plus complète disponible à ce jour, pour comparer le bien-être économique au Canada et aux États-Unis au cours de la première décennie du XXIe siècle. Cette étude constitue la première comparaison internationale fondée sur le LIMEW, qui se distingue de la mesure standard du revenu monétaire brut (RM) en ce qu’il inclut les transferts gouvernementaux non monétaires, la consommation publique, le revenu de la richesse et la production des ménages, tout en excluant l’ensemble des impôts personnels. Nous constatons que, par rapport aux États-Unis, le LIMEW équivalent médian était inférieur de 11 % au Canada en 2000. D’ici 2005, cet écart s’était réduit à 7 %, alors que l’écart du RM équivalent médian n’était que de 3 %. L’inégalité était nettement plus faible au Canada, avec un coefficient de Gini de 0,285 pour le LIMEW équivalent en 2005, comparativement à un coefficient de 0,376 aux États-Unis — un écart qui reflète principalement l’importance plus grande du revenu de la richesse aux États-Unis. Cependant, l’écart entre les coefficients de Gini a diminué entre 2000 et 2005. Nous constatons également que les personnes âgées étaient relativement mieux loties par rapport aux personnes non âgées aux États-Unis, alors que les diplômés du secondaire faisaient relativement mieux que les diplômés universitaires au Canada. [Download full PDF report](https://csls.ca/pdf/csls2012-01-1.pdf)