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Measuring Poverty. A Brief Update of Data Available through Statistics Canada. Planning and Policy Support December 10, 2013. Topics. Statistics Canada and Measuring Poverty London’s numbers Threshold amounts Definitions Pros and Cons Current availability Recommended reading.
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Measuring Poverty A Brief Update of Data Available through Statistics Canada Planning and Policy Support December 10, 2013
Topics • Statistics Canada and Measuring Poverty • London’s numbers • Threshold amounts • Definitions • Pros and Cons • Current availability • Recommended reading
Statistics Canada & Measuring Poverty • “Statistics Canada does not define 'poor' nor does it estimate the number of poor families and individuals in Canada.” • Early 1960’s to today - published low-income statistics – key dimension of poverty – low income = at-risk of poverty Source: Statistics Canada. Income Research Paper Series. Low Income Lines 2011-2012. Catalogue no. 75F0002M — No. 002. Modified June 27, 2013.
London’s Numbers Source: Statistics Canada NHS Community Profile and Small Area Administrative Data provided through the Community Data Program. Source: Statistics Canada CANSIM table 202-0802. Data must be used with caution.
The Thresholds Source: Statistics Canada. Low Income Lines 2011-2012
Measure #1 – Low Income Cut Off • First published in 1967; current thresholds based on 1992 spending patterns • If family income below LICO, then likely to be spending more than the average on food, shelter, clothing • Mixed consumption/equity measure
Measure #2 – Market Basket Measure • Dates back to 2000 • Measure of consumption • Cost of nutritious diet, shelter, public transit, clothing and footwear, other necessary goods and services • If family income below the MBM line, unlikely to be able to afford all items
Measure #3 – Low Income Measure • Used by Province to track progress • Measure of equity • Household considered poor if income is 50% below the median 50% have income below the median 50% have income above the median Poor = having income 50% below the LIM Median household income
Before Tax or After Tax? • Before Tax – historic – does not take into account tax transfers and credits – Campaign 2000 • After Tax – 2006 Census – preferred by Stats Can as takes into account tax transfers and credits • Looking at both allows us to see impact of tax measures
A Final Thought • “… low-income statistics are not intended to provide an indication of the success or failure of specific programs designed to assist the poor.” Source: Statistics Canada. Income Research Paper Series. Low Income Lines 2011-2012. Catalogue no. 75F0002M — No. 002. Modified June 27, 2013.
Recommended Reading • Cutting Through the Fog by John Stapleton http://metcalffoundation.com/wp-content/uploads/2011/05/cutting-through-the-fog.pdf • Poverty. Where Do We Draw the Line by Chris Sarlo http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/Poverty-where-do-we-draw-the-line.pdf • A Measure of Poverty in Canada. A Guide to the Debate About Poverty Lines by Greg DeGroot-Maggetti http://action.web.ca/home/cpj/attach/A_measure_of_poverty.pdf • Research & Policy Development Poverty Links http://www.london.ca/About-London/community-statistics/social-issues/Pages/Poverty.aspx