| 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 | ||