The Three Amigos: How Income Inequality in Mexico is different than Canada and the U.S.

An examination of income inequality in North America reveals that Mexico is the only part of the continent where the middle class has been gaining from growth, according to a new study by internationally respected economist Lars Osberg, Dalhousie University professor and CCPA Research Associate.

Mexico’s middle class has benefited from urbanization, greater female employment, improved education and better social programs. Although similar trends in Canada and the U.S. maintained growth in middle class incomes until the 1970s, Osberg says, they have since run out of steam. Globalization, technological advances, a drop in unionized work, and a deregulated labour market have contributed to stagnant real incomes for most in Canada and the U.S. since the 1980s.

Meanwhile, income growth at the top has accelerated in both Canada and the U.S.

Read the full study, Instability Implications of Increasing Inequalityand share our infographic comparing the Three Amigos.