A City Divided by Political Philosophies: Residential Development in a Bi-Provincial City in Canada

American Journal of Economics and Sociology, The,  Jan, 2001  by Gura Bhargava

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The gap between the personal income tax rates of both provinces has narrowed over time. Nevertheless, the prevailing myth of Alberta as a tax haven has accentuated the differences and fostered a preference for Alberta among home-owners. Almost all of the interviewees who chose to own homes on the Alberta side indicated that Alberta's tax advantage was a key reason for choosing this location for their homes.

Some home owners viewed moving between two Lloydminsters as career movements--up and down. One interviewee put it this way: "This is the way it is. You buy your first house in Saskatchewan and then move up, on the Alberta side, as you are a little more settled." Another confirmed this, when describing her move from Alberta to Saskatchewan as "moving down" from a large, expensive house to a relatively affordable and smaller house. She said, "We owned a big house on the Alberta side, but when my husband and I separated, I preferred to buy one in Saskatchewan; it was reasonably priced and smaller but enough for my boyfriend and myself. Also, my boyfriend had to pay less for auto insurance on this side of the border." The oral accounts of various citizens indicate that Alberta and Saskatchewan in Lloydminster evoke dissimilar class and status attributions. According to a real estate appraiser, "Saskatchewan with the majority of 900 square feet houses and lower land value is a haven for blue collar workers. Also, Saskatchewan's health advantage is most advantageous to low income groups." The same contention is echoed in the responses of six families who have moved from provinces such as Manitoba, Ontario, and Nova Scotia to accept employment with the Bi-Provincial Upgrader. They did not even look at houses in the Saskatchewan area because information gathered informally had convinced them that south-Alberta neighbourhoods were highly preferable and desirable: unlike Saskatchewan neighbourhoods, these neighbourhoods offered quality products, pleasant surroundings, and an opportunity for worthwhile investment.

Those moving from Calgary, St. Albert, or other Albertan cities tended to choose an Alberta residence; the same pattern existed for Saskatchewan residents. However, some Saskatchewan residents, after moving to Saskatchewan in Lloydminster, tended to change their location for reasons other than the tax difference. Thus, one of the interviewees who moved to Alberta from Saskatchewan commented, "We lived in Saskatchewan before moving to Lloydminster. However, while residing on the Saskatchewan side of the border, we felt as if we were living on the wrong side of the track." This response indicates that an Alberta location offers an "identity value" (Warde 1992) to its inhabitants which is more desirable than the identity offered by Saskatchewan. Harris and Pratt allude to this dimension when they observe,

The home conveys messages about status and identity. Ownership is clearly one aspect of status message, but so too is neighbourhood, house style and interior and exterior decoration. It may be that home has become a more significant status object in recent times. (1993, p. 283).