Tuesday 15 February 2022

Canadian Wealth Lorenz Curve

 

    As promised, above is the Canadian Wealth Lorenz Curve showing the percentage of total national wealth held by each percentile of the population.

    The first thing to notice is that there is not really much movement in this over time. In fact, looking at this I don't find it too interesting and probably would not have posted on it on its own - but I promised in the income Lorenz curve post that I'd run this one too - so here it is. 

    Further, to recognize is that wealth can be negative as individuals can have a negative net wealth - this is specifically seen in the bottom 20 percentile of the population, the net worth of this set is around the -2% range. We see that 50% of the Canadian wealth is held by 90% of the population, with the top 50% of the wealth being held by the top 10th percentile (and the top 25% of the wealth being held by the top 1%). 

    Additionally, most of the movement in this curve takes place in the top 20th percentile. so zooming just on this area we witness the following - still not too exciting.


    So, provided out of a promise to provide, I find it a little interesting that there has not been much change in the wealth distribution over the last 15ish years, That is, a rather anti-climatic change in wealth.

    Further - to be honest - I struggled to find a definition of this data-set, so I am not 100% sure how wealth is determined and what sources of wealth go into this calculation - thus it may very well be that the unremarkability of the above data is due to the way in which wealth is measured and reported.

No comments:

Post a Comment

The high cost of low taxes - Fiscal Policy part 2

                 In this post, we will spend some time talking about the high costs of low taxes. This may seem somewhat paradoxical; we wil...