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  • 1. The Instability of Family Earnings and Family Income in Canada, 1986 to 1991 and 1996 to 2001 Archived
    Articles and reports: 11F0019M2005265
    Geography: Canada
    Description:

    We investigate how family earnings instability has evolved between the late 1980s and the late 1990s and how family income instability varies across segments of the (family-level) earnings distribution. We uncover four key patterns. First, among the subset of families who were intact over the 1982-1991 and 1992-2001 periods, family earnings instability changed little between the late 1980s and the late 1990s. Second, the dispersion of families' permanent earnings became much more unequal during that period. Third, families who were in the bottom tertile of the (age-specific) earnings distribution in 1992-1995 had, during the 1996-2001 period, much more unstable market income than their counterparts in the top tertile. Fourth, among families with husbands aged under 45, the tax and transfer system has, during the 1996-2001 period, eliminated at least two-thirds (and up to all) of the differences in instability (measured in terms of proportional income gains/losses) in family market income that were observed during that period between families in the bottom tertile and those in the top tertile. This finding highlights the key stabilization role played by the tax and transfer system, a feature that has received relatively little attention during the 1990s when Employment Insurance (EI) (formerly known as Unemployment Insurance (UI)) and Social Assistance were reformed.

    Release date: 2005-11-02
  • 2. Summary Of: The Instability of Family Earnings and Family Income in Canada, 1986 to 1991 and 1996 to 2001 Archived
    Articles and reports: 11F0019M2005266
    Geography: Canada
    Description:

    This article summarizes findings from the research paper entitled: The Instability of Family Earnings and Family Income in Canada, 1986 to 1991 and 1996 to 2001. Despite its implications for family well-being, little attention has been paid to the analysis of earnings instability in the context of the family versus the earnings profiles of individuals. While a focus on individuals is important, the extent to which families can generate stable income flows from the labour market is a key concern for policymakers. Therefore, using data from Statistics Canada's Longitudinal Administrative Databank (LAD), this study documents how family earnings instability has evolved between two six-year periods: 1986-1991 and 1996-2001. We also examine how husbands' earnings instability compares to couples' earnings instability, and we compute measures of instability based on family earnings, family market income, and family income before and after tax. This allows us to examine the extent to which wives' earnings reduce the volatility of husbands' employment income; the extent to which the tax and transfer system plays a stabilization role; and the extent to which wives' earnings, taxes, and transfers reduce the differences in instability between couples in the bottom of the earnings distribution and those in the top.

    Release date: 2005-11-02
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  • 1. The Instability of Family Earnings and Family Income in Canada, 1986 to 1991 and 1996 to 2001 Archived
    Articles and reports: 11F0019M2005265
    Geography: Canada
    Description:

    We investigate how family earnings instability has evolved between the late 1980s and the late 1990s and how family income instability varies across segments of the (family-level) earnings distribution. We uncover four key patterns. First, among the subset of families who were intact over the 1982-1991 and 1992-2001 periods, family earnings instability changed little between the late 1980s and the late 1990s. Second, the dispersion of families' permanent earnings became much more unequal during that period. Third, families who were in the bottom tertile of the (age-specific) earnings distribution in 1992-1995 had, during the 1996-2001 period, much more unstable market income than their counterparts in the top tertile. Fourth, among families with husbands aged under 45, the tax and transfer system has, during the 1996-2001 period, eliminated at least two-thirds (and up to all) of the differences in instability (measured in terms of proportional income gains/losses) in family market income that were observed during that period between families in the bottom tertile and those in the top tertile. This finding highlights the key stabilization role played by the tax and transfer system, a feature that has received relatively little attention during the 1990s when Employment Insurance (EI) (formerly known as Unemployment Insurance (UI)) and Social Assistance were reformed.

    Release date: 2005-11-02
  • 2. Summary Of: The Instability of Family Earnings and Family Income in Canada, 1986 to 1991 and 1996 to 2001 Archived
    Articles and reports: 11F0019M2005266
    Geography: Canada
    Description:

    This article summarizes findings from the research paper entitled: The Instability of Family Earnings and Family Income in Canada, 1986 to 1991 and 1996 to 2001. Despite its implications for family well-being, little attention has been paid to the analysis of earnings instability in the context of the family versus the earnings profiles of individuals. While a focus on individuals is important, the extent to which families can generate stable income flows from the labour market is a key concern for policymakers. Therefore, using data from Statistics Canada's Longitudinal Administrative Databank (LAD), this study documents how family earnings instability has evolved between two six-year periods: 1986-1991 and 1996-2001. We also examine how husbands' earnings instability compares to couples' earnings instability, and we compute measures of instability based on family earnings, family market income, and family income before and after tax. This allows us to examine the extent to which wives' earnings reduce the volatility of husbands' employment income; the extent to which the tax and transfer system plays a stabilization role; and the extent to which wives' earnings, taxes, and transfers reduce the differences in instability between couples in the bottom of the earnings distribution and those in the top.

    Release date: 2005-11-02
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