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Which Canadian Seniors Are Below the Low-Income Measure?
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Which Canadian Seniors Are Below the Low-Income Measure?

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  • Michael R. Veall

Abstract

About 6% of seniors in Canada have family incomes below the Low-Income Measure. (The Low-Income Measure is 50% of the median family income, adjusted for family size, and is a commonly used, if arbitrary, operational definition of relative poverty.) This is a low rate by international standards, in sharp contrast to the high rate in Canada about 35 years ago. It is lower than the comparable rates for the general Canadian population or for families with children and more Canadians leave below-LIM status during their retirement years than enter it. Canadian income tax data show that the remaining 6% are disproportionately immigrant, female, currently unmarried and supporting dependent children (possibly grandchildren). Age does not appear to be of great importance.

Suggested Citation

  • Michael R. Veall, 2007. "Which Canadian Seniors Are Below the Low-Income Measure?," Social and Economic Dimensions of an Aging Population Research Papers 186, McMaster University.
    • Handle: RePEc:mcm:sedapp:186
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    File URL: http://socserv.mcmaster.ca/sedap/p/sedap186.pdf
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    References listed on IDEAS

    as
    1. Kevin Milligan, 2008. "The Evolution of Elderly Poverty in Canada," Canadian Public Policy, University of Toronto Press, vol. 34(s1), pages 79-94, November.
    2. Thomas F. Crossley & Krishna Pendakur, 2002. "Consumption Inequality," Department of Economics Working Papers 2002-09, McMaster University.
    3. Lars Osberg, 2001. "Poverty Among Senior Citizens: A Canadian Success Story," The State of Economics in Canada: Festschrift in Honour of David Slater, in: Patrick Grady & Andrew Sharpe (ed.),The State of Economics in Canada: Festschrift in Honour of David Slater, pages 151-181, Centre for the Study of Living Standards.
    4. Myles, John, 2000. "The Maturation of Canada's Retirement Income System: Income Levels, Income Inequality and Low Income Among the Elderly," Analytical Studies Branch Research Paper Series 2000147e, Statistics Canada, Analytical Studies Branch.
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    Cited by:

    1. Bonnie-Jeanne MacDonald & Doug Andrews & Robert L. Brown, 2011. "The Canadian Elder Standard - Pricing the Cost of Basic Needs for the Canadian Elderly," Social and Economic Dimensions of an Aging Population Research Papers 286, McMaster University.
    2. McDonald, James Ted & Worswick, Christopher, 2013. "Retirement Incomes, Labour Supply and Co-residency Decisions of Older Immigrants in Canada: 1991-2006," CLSSRN working papers clsrn_admin-2013-23, Vancouver School of Economics, revised 29 Apr 2013.

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    More about this item

    Keywords

    relative poverty; Canadian income distribution; pension adequacy;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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