Saturday, April 1, 2023
No Result
View All Result
  • Media
Support Us
Macdonald-Laurier Institute
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
    • Jobs
    • Women’s History Month Fundraiser
  • Experts
    • Experts Directory
    • In Memoriam
  • Issues
    • Domestic Policy Program
      • Agriculture and Agri-Food
      • Canada’s Political Tradition
      • Economic policy
      • Health Care
      • Innovation
      • Justice
      • Social issues
      • Telecoms
    • Energy Policy Program
      • Energy
      • Environment
    • Foreign Policy Program
      • Foreign Affairs
      • National Defence
      • National Security
    • Indigenous Affairs Program
  • Projects
    • COVID and after: A mandate for recovery
    • COVID Misery Index
      • Beyond Lockdown
    • Provincial COVID Misery Index
    • Centre for Advancing Canada’s Interests Abroad
      • Dragon at the Door
      • The Eavesdropping Dragon: Huawei
    • An Intellectual Property Strategy for Canada
    • Competition Policy in Canada
    • Speak for Ourselves
    • Canada and the Indo-Pacific Initiative
    • DisInfoWatch.org
    • The Transatlantic Program
    • Indigenous Prosperity at a Crossroads
      • Aboriginal Canada and Natural Resources
    • Talkin’ in the Free World with Mariam Memarsadeghi
    • Past Projects
      • Justice Report Card
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Libraries
    • Annual Reports
    • Inside Policy Magazine
      • Inside Policy Back Issues
      • Inside Policy Blog
    • Papers
    • Columns
    • Books
    • Commentary
    • Straight Talk
    • Video
    • Multimedia
    • Podcasts
    • Leading Economic Indicator
    • Labour Market Report
    • MLI in the Media
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
    • Jobs
    • Women’s History Month Fundraiser
  • Experts
    • Experts Directory
    • In Memoriam
  • Issues
    • Domestic Policy Program
      • Agriculture and Agri-Food
      • Canada’s Political Tradition
      • Economic policy
      • Health Care
      • Innovation
      • Justice
      • Social issues
      • Telecoms
    • Energy Policy Program
      • Energy
      • Environment
    • Foreign Policy Program
      • Foreign Affairs
      • National Defence
      • National Security
    • Indigenous Affairs Program
  • Projects
    • COVID and after: A mandate for recovery
    • COVID Misery Index
      • Beyond Lockdown
    • Provincial COVID Misery Index
    • Centre for Advancing Canada’s Interests Abroad
      • Dragon at the Door
      • The Eavesdropping Dragon: Huawei
    • An Intellectual Property Strategy for Canada
    • Competition Policy in Canada
    • Speak for Ourselves
    • Canada and the Indo-Pacific Initiative
    • DisInfoWatch.org
    • The Transatlantic Program
    • Indigenous Prosperity at a Crossroads
      • Aboriginal Canada and Natural Resources
    • Talkin’ in the Free World with Mariam Memarsadeghi
    • Past Projects
      • Justice Report Card
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Libraries
    • Annual Reports
    • Inside Policy Magazine
      • Inside Policy Back Issues
      • Inside Policy Blog
    • Papers
    • Columns
    • Books
    • Commentary
    • Straight Talk
    • Video
    • Multimedia
    • Podcasts
    • Leading Economic Indicator
    • Labour Market Report
    • MLI in the Media
No Result
View All Result
Macdonald-Laurier Institute

MLI Report by Munir Sheikh: Bad policy hurting social mobility

April 9, 2015
in Domestic Policy Program, Economic policy, Economy Policy - papers, Latest News, Papers, Releases
Reading Time: 3 mins read
A A

Former Chief Statistician of Canada says many tax-transfer programs intended to address income inequality have been decreasing social mobility for low-income Canadians, often trapping them behind low income and welfare wallsSheikh774x427-04-15

April 9, 2015 –  Income transfer programs are doing little to encourage social mobility and are in some cases trapping low-income Canadians behind low income and welfare walls, according to a new Macdonald-Laurier Institute report by former Chief Statistician of Canada Munir Sheikh.

In their attempts to address income inequality, he writes, governments should design policies that don’t inadvertently keep people from reaching their full economic potential.

“Despite decades of lip service to the idea of eliminating the welfare and low-income traps, they are still very much with us”, writes Sheikh. “Our social policies must, therefore, be reformed with an eye to eliminating this self-imposed but unconscionable and unnecessary barrier to social mobility”.

To read the full report, click here.

The problem, says Sheikh, is that many wealth transfer programs provide a disincentive for low-income people to move up the ladder.

For example, Ontario offers specialized benefits to those who are receiving social assistance but not to those working at low incomes.

“In Canada, many inappropriate tax-transfer policies have helped to condemn people to being trapped behind low-income and poverty walls and, rather than improving social mobility, may have worsened it”, writes Sheikh.

The report, titled “Great Gatsby v. Zero Dollar Linda: Assessing the relationship between income inequality, social mobility and the tax transfer system”, uses two different economic models to make the case.

Sheikh argues that the evidence suggests the so-called “Great Gatsby” model is insufficient for explaining the impact of reducing income inequality. That model suggests that using the tax-transfer system to reduce income inequality would also help increase social mobility.

But when one considers the “Zero Dollar Linda” model, there is evidence that the relationship between income inequality and social mobility is not so simple. Zero Dollar Linda refers to the famous case of a woman from Toronto who found it more beneficial to be unemployed and receiving government benefits than to have a part-time job that saw her benefits clawed back.

In analysing the two models, Sheikh finds that while there is evidence for a correlation between income inequality and social immobility. His research shows that in Canada, poverty and income inequality don’t always move together.

This suggests that tax-transfer programs are doing a poor job of fostering social mobility. Rather than helping low-income Canadians move out of poverty, these programs are providing incentives for people to rely on government benefits.

Sheikh says that doesn’t mean income redistribution programs can never help in increasing social mobility but that they must be carefully designed to avoid trapping people who wish to work.

“Beyond simple income redistribution, done appropriately, policy should be directed at improving the ability of low-income people to acquire useful skills and to be available for work”, writes Sheikh.

***

Munir Sheikh is the former Chief Statistician of Canada and an Executive Fellow at the School of Public Policy at the University of Calgary. He also served as a co-Commissioner of Ontario’s Social Assistance Review, which submitted its report to the Government of Ontario on transforming the program in October 2012.
The Macdonald-Laurier Institute is the only non-partisan, independent national public policy think tank in Ottawa focusing on the full range of issues that fall under the jurisdiction of the federal government. Join us in 2015 as we celebrate our 5th anniversary.

For more information, please contact Mark Brownlee, communications manager, at 613-482-8327 x105 or email at mark.brownlee@macdonaldlaurier.ca.

Tags: Income inequalityMacdonald-LaurierMLIMunir Sheikhsocial mobility
Previous Post

A strong US recovery will help with Canada’s slow economic growth: Cross in the Globe

Next Post

Crowley to speak at CCCE, Canadian Global Crops Symposium events

Related Posts

Does the cancellation of the Keystone XL pipeline hurt Indigenous people? Yes: Stephen Buffalo in the Toronto Star
Columns

Is Alberta Oil Ethical? Heather Exner-Pirot in Alberta Views

March 31, 2023
Canada’s rising carbon tax, energy prices and the Supreme Court: Andrew Roman for Inside Policy
Inside Policy

Canada’s rising carbon tax, energy prices and the Supreme Court: Andrew Roman for Inside Policy

March 31, 2023
Another found of trade negotiations with the US: How to avoid surprises – Lawrence L. Herman for Inside Policy
Inside Policy

Another found of trade negotiations with the US: How to avoid surprises – Lawrence L. Herman for Inside Policy

March 31, 2023
Next Post
Crowley to speak at CCCE, Canadian Global Crops Symposium events

Crowley to speak at CCCE, Canadian Global Crops Symposium events

Macdonald-Laurier Institute

323 Chapel Street, Suite #300
Ottawa, Ontario
K1N 7Z2 Canada

613.482.8327

info@macdonaldlaurier.ca
MLI directory

Follow us on

Newsletter Signup

Support Us

Support the Macdonald-Laurier Institute to help ensure that Canada is one of the best governed countries in the world. Click below to learn more or become a sponsor.

Support Us

Inside Policy Magazine

  • Current Issue
  • Back Issues
  • Advertising
  • Inside Policy Blog
  • Privacy Policy

© 2021 Macdonald-Laurier Institute. All Rights reserved.

No Result
View All Result
  • Home
  • About
    • Who We Are
    • Who Makes MLI Work
    • Tenth Anniversary
    • Jobs
    • Women’s History Month Fundraiser
  • Experts
    • Experts Directory
    • In Memoriam
  • Issues
    • Domestic Policy Program
      • Agriculture and Agri-Food
      • Canada’s Political Tradition
      • Economic policy
      • Health Care
      • Innovation
      • Justice
      • Social issues
      • Telecoms
    • Energy Policy Program
      • Energy
      • Environment
    • Foreign Policy Program
      • Foreign Affairs
      • National Defence
      • National Security
    • Indigenous Affairs Program
  • Projects
    • COVID and after: A mandate for recovery
    • COVID Misery Index
      • Beyond Lockdown
    • Provincial COVID Misery Index
    • Centre for Advancing Canada’s Interests Abroad
      • Dragon at the Door
      • The Eavesdropping Dragon: Huawei
    • An Intellectual Property Strategy for Canada
    • Competition Policy in Canada
    • Speak for Ourselves
    • Canada and the Indo-Pacific Initiative
    • DisInfoWatch.org
    • The Transatlantic Program
    • Indigenous Prosperity at a Crossroads
      • Aboriginal Canada and Natural Resources
    • Talkin’ in the Free World with Mariam Memarsadeghi
    • Past Projects
      • Justice Report Card
      • Munk Senior Fellows
      • A Mandate for Canada
      • Confederation Series
      • Fiscal Reform
      • The Canadian Century project
      • Fixing Canadian health care
      • Internal trade
      • From a mandate for change
      • Size of government in Canada
  • Events
    • Upcoming Events
    • Past Events
      • MLI Dinners
      • Great Canadian Debates
  • Latest News
  • Libraries
    • Annual Reports
    • Inside Policy Magazine
      • Inside Policy Back Issues
      • Inside Policy Blog
    • Papers
    • Columns
    • Books
    • Commentary
    • Straight Talk
    • Video
    • Multimedia
    • Podcasts
    • Leading Economic Indicator
    • Labour Market Report
    • MLI in the Media

© 2021 Macdonald-Laurier Institute. All Rights reserved.