(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.

Just Posted

Madison Holman displays a cat stuffie she received from her school while awaiting surgery at BC Children’s Hospital. (Submitted)
GoFundMe set up for Duncan girl following cancer diagnosis

Madison Holman, 11, was rushed to Vancouver for emergency surgery

Capitals’ Kahlil Fontana blueliner evades Alberni Valley Bulldogs’ Ethan Hersant during second-period B.C. Hockey League Island Division action at the Alberni Valley Multiplex on Saturday, April 10, 2021. (Susan Quinn/Black Press Media)
Cowichan Capitals go out with a bang

Caps finish BCHL season strong with 6-1 thumping of Clippers

The MS Society flag flies at Duncan city hall to mark MS Awareness Month. (Kevin Rothbauer/Citizen)
Duncan and CVRD help mark MS Awareness Month

MS Walk scales back, but fundraisers are still vital for MS Society

“Keeping fit for Mother’s Day: Participants of Cowichan Lake Recreation’s Mother’s Day hiking event make their way down the Trans Canada Trail, Sunday, May 8. The morning event later wrapped up with snacks and prizes.” (Tyler Clarke/Lake Cowichan Gazette May 11, 2011)
Flashback: Bears, elk, salmon, candidates, and lumber graders

This week around Cowichan Lake in years gone by

Sign up to fundraise to help those affected by dementia. (Submitted)
Not too late for Cowichan residents to join Alzheimer’s Walk

Set a walking or fitness goal for May and raise funds for the Alzheimer Society of B.C.

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

A vial of AstraZeneca vaccine is seen at a mass COVID-19 vaccination clinic in Calgary, Alta., Thursday, April 22, 2021. Dr. Ben Chan remembers hearing the preliminary reports back in March of blood clots appearing in a handful of European recipients of the Oxford-AstraZeneca COVID-19 vaccine. THE CANADIAN PRESS/Jeff McIntosh
Science on COVID, VITT constantly changing: A look at how doctors keep up

While VITT can represent challenges as a novel disorder, blood clots themselves are not new

Poached trees that were taken recently on Vancouver Island in the Mount Prevost area near Cowichan, B.C. are shown on Sunday, May 10, 2021. Big trees, small trees, dead trees, softwoods and hardwoods have all become valuable targets of tree poachers in British Columbia as timber prices hit record levels. THE CANADIAN PRESS/Jen Osborne.
Tree poaching from public forests increasing in B.C. as lumber hits record prices

Prices for B.C. softwood lumber reached $1,600 for 1,000 board feet compared with about $300 a year ago

The warm weather means time for a camping trip, or at least an excursion into nature. How much do you know about camps and camping-related facts? (John Arendt - Summerland Review)
QUIZ: Are you ready to go camping?

How many camp and camping-related questions can you answer?

On Friday, May 14 at Meadow Gardens Golf Club in Pitt Meadows, Michael Caan joined a very elite club of golfers who have shot under 60 (Instagram)
Crowds at English Bay were blasted with a large beam of light from an RCMP Air-1 helicopter on Friday, May 14. THE CANADIAN PRESS/Marc Grandmaison
Police enlist RCMP helicopter to disperse thousands crowded on Vancouver beach

On Friday night, police were witness to ‘several thousand people staying well into the evening’

Sinikka Gay Elliott was reported missing on Salt Spring Island on Wednesday, May 12. (Courtesty Salt Spring RCMP)
Body of UBC professor found on Salt Spring Island, no foul play suspected

Sinikka Elliott taught sociology at the university

The first Black judge named to the BC Supreme Court, Selwyn Romilly, was handcuffed at 9:15 a.m. May 14 while walking along the seawall. (YouTube/Screen grab)
Police apologize after wrongly arresting B.C.’s first Black Supreme Court Justice

At 81 years old, the retired judge was handcuffed in public while out for a walk Friday morning

Queen Elizabeth II and Clive Holland, deputy commonwealth president of the Royal Life Saving Society, top left, virtually present Dr. Steve Beerman, top right, with the King Edward VII Cup for his drowning-prevention work. Tanner Gorille and Sarah Downs were honoured with Russell Medals for their life-saving resuscitation. (Buckingham Palace photo)
Queen presents Vancouver Island doctor with award for global drowning prevention

Dr. Steve Beerman receives Royal Life Saving Society’s King Edward VII Cup at virtual ceremony

Most Read