The Evolution of High Incomes in Canada, 1920–20001

Abstract The evolution of income inequality during the process of development has attracted enormous attention in the economics literature as well as in the political sphere. Understanding the relative roles of ‘natural ‘ economic progress such as technological change versus policy interventions such as taxation, redistribution, and regulation in shaping the distribution of income requires analysing long-term series on inequality. Income tax statistics are the only source of income distribution data available on a regular annual basis for extended periods of time, and are still the best source to study upper income groups. Recent studies, gathered in this volume, have used income tax statistics to construct inequality time series for various countries over the course of the twentieth century.