Land, Income and Regional Inequality: New Estimates of Provincial Incomes and Growth in Canada, 1871-1891

Abstract

THROUGHOUT THE LATER 20TH CENTURY people living at or near Canada’s east coast have experienced lower wages, incomes and wealth than Canadians living in the centre and west of the country.1 The historical origin and long-term nature of the inter-regional patterns are of some interest. If regional inequality originated in the early 20th or in the 19th century, then the analysis of causation must focus on influences that predate or coincide with the first appearance of inequality and on the structures that have contributed to its persistence. On the other hand, if the long-term record reveals significant fluctuations in regional inequality from decade to decade then attention must focus on the nature and causes of short-term fluctuations. All lines of investigation rely on a clear understanding of the timing of the origin of inequality and the nature of the long-term pattern. The census enumeration undertaken in the spring of 1871 provides the earliest systematic evidence of social patterns on a comparable basis in all parts of Canada, as it then existed.2 This information allows us to estimate income inequality among the former British colonies that joined in the political union of 1867. A first attempt to construct regional incomes in 1871 is reported elsewhere.3 This paper provides a significant revision and extension of the earlier estimate. It summarizes our new evidence and assesses the extent to which it changes our view of early inequality. Details of the estimation are reported in Appendix A. It also considers the implications of this evidence for an understanding of agriculture, an important source of income for families in all parts of Canada. An important body of literature argues that Maritime agriculture expanded during the later 19th century by drawing more and more land into production, but that the land was of diminishing quality which in turn caused a decline in agricultural income