Generation squeeze (Z) - Individual income

·         L’évolution du revenu individuel total médian (salaire, transferts des gouvernements, rendements de placements, etc.) depuis 40 ans.

·         Une fois prise en compte l’inflation, ce revenu a reculé de 12 % pour les Canadiens de 25 à 34 ans en dépit d’une multiplication par deux de leur taux de diplomation postsecondaire,

·         Alors que les individus âgés de 35 à 44 ans ont accusé une baisse de revenus de 7 %.

·         Les 45-54 ans (- 2 %) et 55-64 ans (+2 %) ont quant à eux fait du surplace, pendant que

·         Les 65 ans et plus ont amélioré leur sort de 74 %


AGE ANALYSIS OF INDIVIDUAL INCOME

generation squeeze -1

Table 1 shows:

·         The working age population under 45 earned seven to 12 per cent less in 2010 than did the same age group several decades ago.

·         While those 45 to 64 have total incomes that are comparable to those of the same age in the late 1970s.

·         By contrast, today’s population age 65+ enjoys a $10,000 increase in total income after inflation compared to the same age group three decades earlier.

·         Decreased reliance on earnings reflects that seniors now benefit from substantial increases in employer-paid pension income, and income from government transfers, especially the Canada/Quebec Public Pension plans.

Median earnings for those who work full-time.

·         These data show the typical 25-34 year old earns $4,200 less today for full-time work than three decades earlier.

·         The changes in full-time earnings are less substantial for the older parts of the working age population: +/- $1,800 compared to full-time workers of the same age between 1976-1980.

·         These findings are consistent with Gill et al. (2014), who concluded that Canadians age 50-54 earn 64 per cent more today than do 25-29 year olds. In the mid-80s, the age gap in earnings was only 47 per cent.

Postsecondary education

·         The more substantial decline in full-time earnings for the age group under 35 has occurred despite the fact they are more than twice as likely to have postsecondary education compared to someone of the same age in 1976.

·         Sixty-seven per cent of 25-34 year olds had postsecondary credentials in 2006 compared to 30 per cent POPULATION AGING, GENERATIONAL EQUITY & THE MIDDLE CLASS 7 three decades earlier.

Student debt

Because more young people pursue postsecondary education today, more also start with student debt than in the past.

·         Annual undergraduate tuition rates rose from $2,174 in 1976 to $5,313 in 2011 after adjusting for inflation,2 yielding higher average levels of student debt.

·         For example, average four year Canada Student loans increased from $15,850 in 1976 to $22,616 in 2010/11.

·         Although today’s 25-34 year olds earn less than did the same age group in 1976-1980, and about the same as those who began their careers in the early 1980s.


Generation squeeze (Z)

  1. Generation squeeze (Z)
  2. Generation squeeze (Z) - Individual income
  3. Generation squeeze (Z) – Age Analysis of household earnings
  4. Generation squeeze (Z) – Cost of living : Housing
  5. Generation squeeze (Z) - Revenue and Spending, by Age
  6. Generation squeeze (Z) - Discussion