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Table 7 Wealth gap between the bottom 20% and the top 20%, 2005
Average
wealth gap
Fraction of
gap explained


$

%
No controls 958,400
 
A. Controlling for inheritances
1 - Received in the past 10 years 929,700 3.0
2 - Received in the past 916,900 4.3
3 - Value, annual growth = 1% 913,700 4.7
4 - Value, annual growth = 3% 916,000 4.4
5 - Value, annual growth = 5% 926,600 3.3
     
B. Controlling for after-tax income
839,800
12.4
     
C. Multiple controls1 896,100 6.5
C + A1 867,700 9.5
C + A2 857,700 10.5
C + A3 855,200 10.8
C + A4 857,200 10.6
C + A5 866,200 9.6
     
C + A1 + B 772,900 19.4
C + A2 + B 762,600 20.4
C + A3 + B 760,300 20.7
C + A4 + B 762,100 20.5
C + A5 + B 771,000 19.6

Note: Based on 5,190 observations; families for whom
the value of inheritances is unknown are excluded.
1 Including provincial indicators, a quadratic term for the age of
the major income recipient, four indicators for the education
level of the major income recipient, six indicators of family
type and an indicator of work limitation. The dependent
variable is the net worth of families.
Source: Statistics Canada, Survey of Financial Security