The Paradox of Equalization

Equalization, Jake Fuss, Research Papers

The Frontier Centre for Public Policy has just released a new research paper, The Paradox of Equalization Solving In-equity by Increasing Disparities by Jake Fuss, a research associate with the Frontier Centre for Public Policy. This research paper offers recommendations to reform the equalization program to address the service disparities among Canada’s provinces.

Equalization is supposed to ensure that all provinces can offer similar public services and to reduce fiscally induced migration in Canada. Fiscal equalization payments in 2018-19 will total $18.96B and will split between only six provinces. Fiscal equalization may enable the receiving provinces to achieve greater levels of service than non-receiving provinces. As a consequence, some provinces will have lower quality services solely because of the way the system is designed. New policies need to be implemented to reduce the negative effects of the system, but should involve expert consultation before reforming the equalization program.

To read this research paper, click here: FC-PS218_ParadoxEqual_OC1618_F1