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A Statistical Inquiry into Gender-Based Income Inequality in Canada

Ali R. Kaazempur-Mofrad
Dec 2022
Income inequality distribution between social groups has been a globalchallenge. The focus of this study is to investigate the potential impact offemale income on family size and purchasing power. Using statistical methodssuch as simple linear regression, maximum likelihood analysis, and hypothesistesting, I evaluated and investigated the variability of female pre-tax incomewith respect to family size. The results obtained from this study illustratethat for each additional household member, the average purchasing powerdecreases. Additionally, the Bayesian analysis indicates that the probabilityfor an individual with a pre-tax income of at least one and two standarddeviations above the population mean is female is approximately 1/3 and 1/4,respectively, further highlighting the gender-based income inequality inCanada. This analysis concludes that although female pre-tax income has nostatistically significant impact on family size, the female pre-tax income perperson has a statistically significant impact on family size.