TY  - JOUR
T1  - The Impact of Housing Prices and GDP Growth on Income Inequality in Canada: A National Study (1990–2022) with Unemployment as a Control Variable
AU  - Seyyedamir Mousavi
PY  - 2025
JF  - Socioeconomic Analytics
PB  - Universidade Federal de Pernambuco (UFPE)
VL  - 3
IS  - 1
SP  - 97
EP  - 124
UR  - https://periodicos.ufpe.br/revistas/SECAN/article/view/265829
AB  - This study examines the relationships among housing prices, GDP growth, and unemployment and their effects on income inequality in Canada from 1990 to 2022. Employing multiple regression analysis, the research reveals that rising housing prices are significantly associated with lower income inequality, contradicting the common assumption that higher housing costs exacerbate socio-economic disparities. In contrast, GDP growth appears to have little measurable effect on income distribution, challenging the Kuznets Curve Hypothesis, which posits that economic growth ultimately leads to reduced inequality. Unemployment shows minimal relevance as a mediating variable between housing prices, GDP growth, and inequality, suggesting that its role in shaping income disparities is limited. These findings emphasize the importance of government intervention and robust social policies to mitigate labor market shocks and their distributional consequences.
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\nThe study contributes to the literature by challenging conventional economic thought and highlighting the critical influence of housing markets and redistributive policies on income inequality. Although homeownership can serve as a short-run equalizer for middle-class households, persistent long-term affordability issues remain. Moreover, the results suggest that economic growth, when measured solely by GDP, is insufficient for addressing inequality without the support of progressive fiscal and social measures. From a policy perspective, the findings underscore the need for enhanced regulatory oversight of the housing sector, implementation of progressive taxation, and enforcement of strong labor standards to promote a fair distribution of economic growth. Future research should explore regional variations, long-term implications of rising housing expenses, and the causal mechanisms driving income inequality in Canada.
KW  - income  inequality
KW  - housing  prices
KW  - gdp  growth
KW  - unemployment
KW  - kuznets  curve
KW  - redistribution  policies
KW  - canada
KW  - economic  growth
KW  - labor market
KW  - wealth distribution
DO  - 10.29327/2565368.3.1-5
SN  - 2965-4661
LA  - EN
LA  - ES
LA  - PT
ER  -