(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

A sign indicating a COVID-19 testing site is displayed inside a parking garage in West Nyack, N.Y., Monday, Nov. 30, 2020. The site was only open to students and staff of Rockland County schools in an effort to test enough people to keep the schools open for in-person learning. (AP Photo/Seth Wenig)
4 more deaths, 54 new cases of COVID-19 in Interior Health

This brings the total to 66 deaths in the region

Surrey RCMP are investigating after a pedestrian was struck and killed at 183 Street and Highway 10 Friday night. (File photo)
The City of Castlegar’s outdoor community ice rinks are now open for skating. Photo: City of Castlegar
Castlegar outdoor ice rinks open again

Hockey is not permitted at the rinks this year

A garage on 5th Street was destroyed by fire in December 2020. Photo: Glen Freeman
Castlegar Fire Department calls down, but damages up in 2020

2020 second highest year in fire losses

Castlegar Sculpturewalk 2020 – 10 Year Anniversary Sand Sculpture. (Submitted/CBT)
CBT arts and culture grant program now accepting applications

Apply through the Kootenay Columbia Cultural Alliance

Dr. Penny Ballem, a former deputy health minister, discusses her role in leading B.C.’s COVID-19 vaccination program, at the B.C. legislature, Jan. 22, 2021. (B.C. government)
B.C. holds steady with 407 new COVID-19 cases Tuesday

14 deaths, no new outbreaks in the health care system

Interior Health reported two more COVID-19 deaths at Sunnybank Retirement Center in Oliver Tuesday, Jan. 26, 2021. (File photo)
COVID-19 claims lives of two more South Okanagan care home residents

Five residents of the Oliver care home have died since the outbreak was first declared

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Jonathon Muzychka and Dean Reber are wanted on Canada-wide warrants. (Courtesy of Victoria Police Department)
Convicted killer, robber at large after failing to return to facility: Victoria police

Dean Reber, 60, and Jonathon Muzychka, 43, may be together

B.C. Premier John Horgan listens during a postelection news conference in Vancouver on Sunday, Oct. 25, 2020. THE CANADIAN PRESS/Darryl Dyck
30% of B.C. recovery benefit applications held up in manual review

The province says 150 staff have been reassigned to help with manually reviewing applications

Adam Dergazarian, bottom center, pays his respect for Kobe Bryant and his daughter, Gianna, in front of a mural painted by artist Louie Sloe Palsino, Tuesday, Jan. 26, 2021, in Los Angeles. (AP Photo/Jae C. Hong)
Kobe Bryant’s presence remains strong a year after his death

Tuesday marks the grim anniversary of the crash that took their lives

Modelling of predicted transmission growth from the B117 COVID-19 variant in British Columbia. (Simon Fraser University)
COVID-19 variant predicted to cause ‘unmanageable’ case spike in B.C: report

SFU researchers predict a doubling of COVID-19 cases every two weeks if the variant spreads

The Brucejack mine is 65 km north of Stewart in northwestern B.C. (Pretivm Photo)
B.C. mine executives see bright gleam in post-COVID future

Low carbon drives demand for copper, steelmaking coal

In this Dec. 18, 2020 photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb.  THE CANADIAN PRESS/AP-Chris Machian /Omaha World-Herald via AP
Canadians divided over Keystone pipeline, despite U.S. president’s permit pullback

Two-thirds of Canadians think Biden’s decision was a “bad thing” for Alberta

Most Read