The Determinants of the Wealth and Asset Holding in Nineteenth-Century Canada: Evidence from Microdata

Abstract

Wealth and asset holding in late-nineteenth-century Ontario are examined using a new data set of census-linked probated decedents. Hump-shaped wealth-age profiles are found, supporting the importance of demographic and life cycle forces in late-nineteenth-century financial asset accumulation. With financial asset holding more pronounced in Ontario than Quebec, the implication for Canadian economic development is that the differences in capital formation and industrialization across Ontario and Quebec are partly rooted in saving behavior. The results show that urbanization, occupational status, literacy, the number of children, and region of residence are important determinants of wealth and asset holding.