Quebec government policies exact a high cost on the province’s economic prosperity and the income mobility of its citizens
By Gabriel Giguère
and Vincent Geloso
Quebecers who want to improve their lot in life should be able to do so without having the government stand in their way.
Whether it’s applying for a job that makes better use of their skills, following certain training programs, or modifying their work schedule with their employer’s support, Quebecers should be free to raise their living standards if that’s what they choose.
Yet, in Quebec, government policies too often place obstacles in the path of those trying to improve their material conditions.
 Gabriel Giguère |
 Vincent Geloso |
This issue becomes apparent when looking at Statistics Canada data on income mobility, also known as relative mobility – the ability of people to move between income levels over the course of their lives. In Quebec, those in the lowest-income 10 per cent tend to remain in that position longer than their counterparts in other large Canadian provinces.
If Quebec enjoyed relative income mobility rates similar to Alberta’s, no fewer than 25,400 additional Quebecers could have made the leap from the lowest income decile to the lower middle class or higher between 2016 and 2021.
These Quebecers are no less intelligent, capable, or hardworking than people in Alberta, British Columbia or Ontario. The difference lies in how provincial and municipal governments either encourage or discourage economic opportunities.
For example, take the need for licences to practise certain trades, the weight of the tax burden, or the degree of freedom allowed for private sector development. By all these metrics, Quebec ranks near the bottom – if not dead last – among Canadian provinces, resulting in lower upward mobility across income levels.
It’s no secret that Quebecers are the most heavily taxed people on the continent. In 2022, Quebec’s tax burden was a whopping 38.9 per cent of GDP. Over the past 40 years, Quebec has consistently maintained a higher tax burden than the rest of Canada, with the gap now standing at 6.1 percentage points.
This high level of taxation is largely due to Quebec’s high level of government spending, which is the highest in the country. Total government spending in Quebec as a share of GDP in 2022 was nearly 10 percentage points higher than in Ontario, 14 points higher than in British Columbia, and almost double that of Alberta.
The result is that after taxes, Quebecers have less money left in their pockets to finance personal projects, whether buying a house, obtaining a diploma, or starting a business.
In some instances, these projects are simply delayed by a few years, postponing their individual and societal benefits. In other cases, they’re abandoned entirely.
This is just one example of how government intervention, well-intentioned or not, can end up acting as a drag on socioeconomic mobility.
Another example is the mandatory occupational licensing required in Quebec. Excessive regulation of workers in the construction sector, for example, creates a barrier for lower-income Quebecers trying to enter the field. Quebec construction workers face more licensing requirements than anywhere else in Canada.
In other provinces, people seeking advancement in construction often find it easier, as many trades are accessible without the steep requirement of completing hundreds of hours of schooling.
Sometimes, the best way government can help is simply to get out of the way – by removing unnecessary regulations and leaving more money in taxpayers’ pockets. The prospect of upward mobility is the true sign of a thriving society, where people are free and able to pursue their goals on their own terms.
Gabriel Giguère is a senior public policy analyst and Vincent Geloso is senior economist at the Montreal Economic Institute.
Explore more on Quebec politics, Poverty, Legault government, Taxation, Trades
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