Excessive Zoning Rules Impact Social Mobility in Quebec
The Montreal Economic Institute (MEI) highlights how strict zoning regulations in Quebec municipalities indirectly hinder the less fortunate from moving to more prosperous areas, limiting their chances to enhance their lives.
In a recent social mobility ranking released by the MEI, it was revealed that these regulations pose a significant barrier to improving one’s economic status. Social mobility, which refers to the ability to advance one’s income compared to that of their parents, is crucial for a better quality of life, as explained by MEI senior economist Vincent Geloso.
The construction limitations imposed by zoning laws lead to a reduced supply of housing and subsequently drive up prices, making it challenging for lower-income individuals to relocate to thriving economic hubs like Montreal. Geloso points out that higher housing costs in prosperous areas restrict the less privileged from benefiting from the economic opportunities available there.
Moreover, the MEI identifies professional certification requirements and high marginal tax rates as other factors that impede social mobility. While government funding for education and social programs can mitigate these barriers, Quebec still lags behind other Canadian provinces in fostering long-term social mobility.
Despite Quebec’s strengths in areas like education and corporate taxes, the province falls short in several key indicators that drive social mobility, such as geographic mobility and community trust.
