Comparison of inequality reduction and income security in Canada from a mixed to neo-liberal welfare regime: micro-data simulations and policy implications

Abstract

Using micro-data from two nationally representative surveys, we quantify and explain intertemporal evolution in inequality reduction effectiveness of income security programmes in Canada caused by change from a mixed to a neo-liberal welfare regime. The presented empirical evidence shows that the overall inequality reduction effectiveness of income security declined significantly as a result of regime change. The new neo-liberal welfare regime of income security in Canada is characterized by paradoxes of redistribution and by increased degrees of stratification.