Do governments matter? Provincial policy and redistribution in two Canadian provinces, 1990–2010

Abstract

One of the most important economic debates surrounding the feasibility of government efforts to redistribute income is the extent to which economic integration leads to policy convergence. The convergence hypothesis argues that when trade and finance flow freely between political jurisdictions, economic policies will tend to converge. This article uses two Canadian provinces, Manitoba and British Columbia, to conduct a comparative analysis of redistributive policy convergence. We do find observable differences in the redistributive policies of the two provinces. The extent to which this translated into measurable improvements in economic and social outcomes is less pronounced, but will be of interest to scholars of inequality.