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The dimensions of wage inequality among Aboriginal peoples

by Rachel Bernier
Business and Labour Market Analysis Division
Analytical Studies Branch research paper series, No. 109

The issue of wage inequality raised interest after studies have shown that the gap between the highest and lowest paid workers in many industrialized countries had widened during the 1980s. In Canada, most research involved wage dispersion among Canadians. This study examines wage dispersion between Canadian workers as a whole and workers of Aboriginal origin.

Confirming previous studies, Aboriginal peoples earn less than Canadians as a whole, on average. However, this is the first research that examines the wage distributions of four main Aboriginal groups, i.e. North American Indians on reserve, North American Indians off reserve, Inuit and Métis. Results show that there is greater inequality in the distribution of wages for Aboriginal workers than for Canadian workers as a whole, even after allowing for demographic differences.

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