FW The power of women

[Ed Weick]

I've recently had occasion to dig through the past three Canadian censuses.  In 1986, average family income in Canada was $37,827.  By 1991, this had grown to $51,342 in nominal terms, an increase of 35.7%.  Between 1991 and 1996, nominal income growth had slowed, growing by only 6.3% to $54,583.    It would seem that, for the 1986 to 1996 decade, income grew considerably, but if one deflates nominal income by the consumers price index (1986=100), one finds that this is not really the case.  During the 1986 to 1991 period, real family income did grow considerably, from $37,827 to $40,683, or by 7.5%, about 1.5% per year.  However, during the following five year period, it actually shrank by slightly more than one percentage point, from $40,683 to $40,253.   It probably would have fallen much further if it had not been for two factors, a substantial increase in female labour force participation during the 1986 to 1996 decade and a rapid rise in the income of women.  In real terms, women's average income rose by 10.4% between 1986 and 1991 and by 1.7% between 1991 and 1996.  In marked contrast, men's income rose by slightly under 3% between 1986 and 1991 and actually fell by over four percentage points between 1991 and 1996.  While increasing labour force participation was significant, rising real female income may have been the most important factor in maintaining real family income at approximately its 1991 level.   This should not be taken to mean that, on average, women now earn as much or more than men.  Though it may be closing, a very large gap remains.  In nominal terms, men, on average, earned $31,117 in 1996, whereas women earned only $19,208, less than two-thirds as much.  It would seem that we are still a long way from achieving pay equity.   Ed Weick