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Income Inequality Gini Index


The gap between high- and low-income earners on the North Shore is among the widest in Canada. An analysis of 418 municipalities with populations greater than 10,000 indicates that West Vancouver is second only to Westmount, Quebec in income inequality, based on 2020 Statistics Canada data. The City of North Vancouver ranked 17th most unequal (tied with Beaconsfield, Quebec) and North Vancouver District as 24th most unequal (tied with Waterloo, Ontario). 

Methods and Limitations:

The Gini index is a measure of income inequality. The Gini index measures how much an income distribution deviates from perfect equality. Values of the Gini index can range from 0 to 1. A value of 0 denotes a perfectly equal distribution in a population, where all units receive exactly the same amount of income. A value of 1 denotes a perfectly unequal distribution, where one unit has all of the income in the economy.

For the census, Gini index values are calculated for three types of adjusted household income—market income, total income and after-tax income. Adjusted income is computed by dividing the household income by a factor equal to the square root of the household size (known as the equivalence scale). This adjustment for different household sizes takes into account economies of scale. It reflects the fact that the needs of a household increase, but at a decreasing rate, as the number of members increases.

The boundaries and names of census geographies can change from one census to the next. In order to facilitate data comparisons between censuses, previous census data have been adjusted to reflect as closely as possible the 2021 boundaries of these areas. 



Income Inequality Gini Index in the Sustainable Development Goals

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