1. A Brief Update of Data Available through Statistics Canada
Measuring Poverty
A Brief Update of Data Available through Statistics Canada
Planning and Policy Support
December 10, 2013

2. Topics Statistics Canada and Measuring Poverty London’s numbers
Threshold amounts
Definitions
Pros and Cons
Current availability
Recommended reading

3. 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 Catalogue no. 75F0002M — No Modified June 27, 2013.

4. 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 Data must be used with caution.

5. The Thresholds Source: Statistics Canada. Low Income Lines 2011-2012
When using the LICO or the MBM, the economic family is the appropriate unit – related by blood. When using the LIM, the household is the appropriate unit – occupy the same dwelling
Source: Statistics Canada. Low Income Lines

6. 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

7. 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

8. 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

9. 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

10. Pros and Cons Pros Cons LICO History Adjusts for family size
Adjusts for community size
Expenditure assumptions not being updated
LIM
Used by Province to track progress
Community size and regional differences not accounted for
MBM
Adjusts for family size, regional differences
Clarity
Debate as to contents of basket

11. Current Status of Data Availability for London
Data source
Geography
Timing
Trend
# below LICO
NHS by request
City
Census
Not to be compared to previous years
Taxfiler - CANSIM
CMA
Annual, 2 to 3 year lag
Yes
# below LIM
NHS online
None
Taxfiler – Community Data Program
# below MBM
CANSIM data is based on 20% sample – data for subgroups must be used with caution due to data reliability

12. 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 Catalogue no. 75F0002M — No Modified June 27, 2013.

13. Recommended Reading Cutting Through the Fog by John Stapleton
Poverty. Where Do We Draw the Line by Chris Sarlo
A Measure of Poverty in Canada. A Guide to the Debate About Poverty Lines by Greg DeGroot-Maggetti
Research & Policy Development Poverty Links