Low income measurements at Statistics Canada

Low income measurements at Statistics Canada

Xuelin Zhang Income Statistics Statistics Canada

August 4, 2009

Context

At Statistics Canada, we are often asked for information on poverty by policy makers and the public.

? Who are poor? ? How many poor are there? ? How poor are they? ? Poor for how long? ? ........

2

Statistics Canada ? Statistique Canada

11/08/2009

Context

Despite this ongoing interest

? There is neither a unique definition of poverty nor a simple way of determining who is poor.

Because defining poverty is hard.

? What are common necessities? ? What is considered minimally acceptable? ? With reference to whom the standard is set? ? ......

It is not the proper role of a national statistics agency to define an official measure of poverty as its definition represents a social consensus and not an expert judgment.

3

Statistics Canada ? Statistique Canada

11/08/2009

The role of STC

STC provides the context for a poverty debate in which the development of low income lines are a key aspect

? Through supporting the construction of lines by other Canadians with data access and support

? Through providing benchmark low income lines to facilitate international comparisons and assist the national debate

4

Statistics Canada ? Statistique Canada

11/08/2009

Low income lines at STC

LICOs ? Low Income Cut-Offs. LIM ? Low Income Measure. MBM ? Market Based Measure.

5

Statistics Canada ? Statistique Canada

11/08/2009

LICOs

LICOs are thresholds below which a family is likely to spend a significantly higher proportion of its income on food, shelter and clothing than the average family and hence have relatively little "discretionary income" left for other spending and is likely to live under straitened circumstance.

Significant: 20% more than average. Current LICOs are based on 1992 FAMEX

survey, updated by annual CPI.

6

Statistics Canada ? Statistique Canada

11/08/2009

Family size

1 2 3 4 5 6 7 and over

1 2 3 4 5 6 7 and over

7

After-tax LICO thresholds 1992 and 2007

Rural area

Urban areas by number of residents

8,848 10,769 13,410 16,730 19,050 21,127 23,204

11,745 14,295 17,800 22,207 25,287 28,044 30,801

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download