In drawing international comparisons across countries with similar levels of socio-economic development, research consistently finds that Canada falls somewhere between the United States, where levels of poverty and inequality are relatively high, and much of continental Europe, where the incidence of poverty is moderated somewhat by more comprehensive welfare states.

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Canada's social welfare policies and economic conditions often place it between the U.S. and European countries in terms of poverty and inequality, with the U.S. having higher levels and Europe having lower levels due to more comprehensive welfare systems.

In Drawing International Comparisons Across Countries with Similar Levels of Socio-Economic