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Low-income Dynamics and Determinants under Different Thresholds: New Findings for Canada in 2000 and Beyond

Two researchers from the Atlantic RDC publish a new study on low income in Canada.

In this paper, Jerry Ren and Kuan Xu from Dalhousie University analyze the dynamics and determinants of low income In Canada over the last decade. They study the evolution of the situation according to all three low-income thresholds established by federal departments: the low-income cut-off (LICO), the low-income measure (LIM), and the market basket measure (MBM), using panel 3 (1999 to 2004) and Panel 4 (2002 to 2007) of the Survey of Labour and Income Dynamics (SLID). They notably find that only about five to six percent of the total population experience persistent low income (for four to six years), regardless of which threshold is used, but that this figure is much higher among certain subgroups, such as lone mothers, recent immigrants, members of visible minorities, people with less education and people with activity limitations. They also found that seniors have the lowest low-income incidence whether it is transitory (less than 10 percent of seniors experienced it) or persistent (less than 5 percent).

To download the paper entitled “Low-income Dynamics and Determinants under Different Thresholds: New Findings for Canada in 2000 and Beyond” and published in Statistics Canada’s Income Research Paper Series, click on the following link: http://publications.gc.ca/collections/collection_2011/statcan/75F0002M/75f0002m2011003-eng.pdf