Ice roads and income in remote indigenous communities of Canada

Abstract

I estimate the effects of ice road length deviation on the level of income in the Northwest Territories communities. The harsh weather conditions and extreme climates in the NWT magnify the challenges associated with maintaining infrastructure, often undermining its long-term benefits. I find that the disruptions in ice roads, which serve as vital links for northern Canadian communities, exacerbate income inequality by placing a greater burden on low-income households while disproportionately favoring higher-income groups. Education is a critical factor in driving income growth and reducing inequality. Conversely, reliance on social assistance notably reduces income for higher-income families, while it provides a boost for those in need. Larger communities, however, experience more severe economic challenges, especially within lower-income groups.