(Black Press Media files)

(Black Press Media files)

Wealth of Canadians divided along racial lines, says report on income inequality

One interesting finding was that racialized men have a higher employment rate than non-racialized men

Canadians who identify as visible minorities do not have the same access to investments and other sources of wealth as non-racialized people, suggests a new report on income inequality that looks at the financial impact of racism beyond jobs and wages.

“Employment income is the sole or main source of income for most Canadians, and labour market policies play a major role in improving or worsening income inequality,” says a newly published report by the Canadian Centre for Policy Alternatives, which looks at income inequality along racial lines.

“But labour markets are part of a broader political-economic context, where past and current policies have favoured some population groups over others,” says the report. “This history of wealth accumulation for some but not others is a crucial contributor to racialized economic inequality today.”

There is little Canadian data when it comes to examining wealth according to race, but Statistics Canada did include some details on income linked to net wealth — specifically, capital gains and income from investments — broken down by visible minority status in the 2016 Census.

The analysis in the report suggests a discrepancy between racialized Canadians, which is how the co-authors refer to those who identified in the 2016 Census as visible minorities, and non-racialized, or white, Canadians. The data on visible minorities does not include Indigenous Peoples.

Eight per cent of racialized Canadians over the age of 15 reported some capital gains in 2015, compared to about 12 per cent of non-racialized people. There was also a gap in the amounts, with racialized Canadians receiving, on average, $10,828 — 29 per cent below the average for white Canadians.

There was also gap when it came to money received through investments, such as rental income from real estate holdings or dividends from stocks.

The analysis shows about 25 per cent of racialized people earned income from investments in 2015, while nearly 31 per cent of non-racialized Canadians received money through investments that year. The average amount earned was $7,774 for racialized people, and $11,428 for white people.

Sheila Block, a senior economist at the Canadian Centre for Policy Alternatives who co-authored the report, said looking at disparities in wealth, in addition to aspects of the labour market, sheds a new and multifaceted light on the issue of income inequality in Canada.

“When we broaden the lens to look at wealth, rather than just looking at income, it can give us a bigger picture of what the cumulative impact of racism is, both over an individual’s lifespan, but also potentially from one generation to the next,” said Block.

She wrote the report with Grace-Edward Galabuzi, an associate professor of politics and public administration at Ryerson University, and Ricardo Tranjan, a political economist at the Canadian Centre for Policy Alternatives.

Block said the data available in the United States shows the racialized gap when it comes to wealth is even greater than it is for income.

She hopes that Statistics Canada will consider including a question about visible minority status on its regular survey of financial security, which collects information from Canadians on the value of their assets and the money they owe on everything from mortgages to credit cards.

She said better data could lead to more equitable and effective anti-racism policies.

One interesting finding was that racialized men have a higher employment rate than non-racialized men.

A closer look at these numbers suggests this is age-related, as the employment rate for racialized men between the ages of 55 and 64 was 5.9 percentage points higher than for non-racialized men at that age. Below the age of 55, non-racialized men had higher employment rates.

“This higher employment rate for older racialized men may reflect less access to pension income and lower lifetime earnings, i.e., many in this group may not be able to afford to retire,” says the report.

The report also examines the gender gap, concluding that race plays an important role in income inequality between men and women too.

According to the report, which used figures from the 2016 Census, racialized women earn 59 cents for every dollar earned by non-racialized men. Racialized men, meanwhile, earn 78 cents for every dollar earned by their white male counterparts. The gap was narrowest, but not closed, between women, with racialized women earning 87 cents for every dollar earned by white women.

“I think it’s important that we look at the gender wage gaps, rather than the singular gender wage gap,” Block said.

ALSO READ: B.C. Premier John Horgan worried about ‘rise of racism’ in Canada

ALSO READ: Allegations of racism lead to ministry investigation at Vancouver private school

Joanna Smith, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Asymptomatic testing will now be available for "priority groups" who are most likely to spread the COVID-19 virus to vulnerable or at-risk populations. File photo by THE CANADIAN PRESS
A judge has found an Edmonton woman guilty of manslaughter in the death of her five-year-old daughter. THE CANADIAN PRESS/Jason Franson
Edmonton mother found guilty of manslaughter in death of 5-year-old girl

The woman was charged and pleaded not guilty to second-degree murder and assault with weapons, including a belt and a spatula

Alberta has 1,910 active cases of COVID-19 as of Wednesday. Red Deer is reporting five active cases, with 108 recovered. (File photo)
Alberta identifies 2,042 new COVID-19 cases Saturday

Central zone has 2,917 active cases

Alberta Premier Jason Kenney. THE CANADIAN PRESS/Jason Franson
Jason Kenney urges federal government to push U.S. for surplus COVID-19 vaccines

‘It makes no sense for our neighbours and regional states to be sitting on doses that we cannot use,’ the premier said

Alberta reported an additional 1,980 cases of COVID-19 Friday. (NIAID-RML via AP)
Red Deer adds 37th death from COVID-19, active cases drop

Alberta Health identified an additional 1,980 cases of the virus province-wide

The body of Brenda Ware, 35, was found along Highway 93 in Kootenay National Park on Thursday, May 6, 2021. (RCMP handout)
RCMP ask for tips after woman travelling from Alberta found dead in B.C. park

Brenda Ware was found along Highway 93 in the park, 54 kilometres north of the town of Radium

A caribou grazes on Baffin Island in a 2008 file photo. A last-ditch attempt to save some of Canada’s vanishing caribou herds is a step closer after a scientific review panel’s approval of a plan to permanently pen some animals and breed them to repopulate other herds. THE CANADIAN PRESS/AP-Kike Calvo via AP Images
Parks Canada captive caribou breeding proposal gets OK from scientific review panel

Wolf density in Jasper is low enough that the animals would not be expected to be a major threat

People pass the red hearts on the COVID-19 Memorial Wall mourning those who have died, opposite the Houses of Parliament on the Embankment in London, Wednesday, April 7, 2021. On May 3, the British government announced that only one person had died of COVID-19 in the previous 24 hours. THE CANADIAN PRESS/AP-Kirsty Wigglesworth
For a view of a COVID-19 future, Canadians should look across the pond

Britain, like Canada, is one of the only countries in the world to delay second doses for several months

Nuns of Mother Teresa’s Missionaries of Charity, carry some of her relics during a vigil of prayer in preparation for the canonization of Mother Teresa in the St. John in Latheran Basilica at the Vatican, Friday, Sept. 2, 2016. In which city did she do much of her charitable work? (AP Photo/Gregorio Borgia)
QUIZ: How much do you know about these motherhood issues?

In honour of Mother’s Day, take this 10-question quiz

Canada’s chief public health officer is reminding Canadians even those who are fully vaccinated are not immune from transmitting the COVID-19. THE CANADIAN PRESS/Adrian Wyld
Canada’s top doctor warns full vaccination does not equal full protection from COVID-19

Post-inoculation, Theresa Tam says the risk of asymptomatic infection and transmission is far lower but not obsolete

Jennifer Coffman, owner of Truffle Pigs in Field, B.C., poses beside her business sign on Thursday, May 6, 2021, in this handout photo. Her restaurant and lodge have been hit hard by a closure of a section of the Trans-Canada Highway and by the British Columbia government discouraging Alberta residents from visiting during the pandemic. THE CANADIAN PRESS/HO-Jennifer Coffman, *MANDATORY CREDIT*
‘Why we survive’: B.C. boundary towns struggle without Albertans during pandemic

Jennifer Coffman’s restaurant is located in the tiny community of Field, which relies on tourism

A rodeo south of Bowden drew a huge crowd on May 1 and 2, 2021. (Photo courtesy Mom’s Diner’s Facebook page)
Amazon is pausing its Prime Day marketing event in Canada this year amid ongoing COVID-19 outbreaks at its facilities in Ontario. THE CANADIAN PRESS/Nathan Denette
Amazon Prime Day halted in Canada due to COVID-19 outbreaks in warehouses

The event was postponed to protect the health and safety of employees and customers, the company says

Most Read