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Generational Accounting (GA) attempts to measure the degree of intergenerational redistribution that exists within a given fiscal and demographic structure. This approach produces a more comprehensive measure of the extent of intergenerational redistribution stemming from government programs than traditional measures that are based solely on government debt and deficits.

The objectives of this paper are to determine the empirical relationships between economic performance, transfers and low income among Canadian families, and to explore whether these relationships have changed over time. Similar recent studies in the US find a weakening in the relationship between economic growth and low income reduction over the past 25 years. Using data from the Survey of Consumer Finances of Statistics Canada, we find that there is a statistically significant negative relationship between economic performance and the incidence of low income among families in Canada for the period from 1973 to 1995. Government transfers are also found to lift families above the low income threshold. These results are robust across different family types and for three different measures of low income.

We also find a weakening in the relationship between improved economic performance and low income reduction for most family types between 1973 and 1995, and for all family types after 1980. This weakening is associated with rising pre-transfer income inequality among families. Increasing inequality has also reduced the negative impact of transfers on low income rates.

The employment/population ratio is a good barometer of the state of the economy and an important though little-used labour market indicator. This article takes a look at the ratio's strengths and limitations, as well as its variation since 1946. Provincial and international comparisons are included.

Generational Accounting (GA) attempts to measure the degree of intergenerational redistribution that exists within a given fiscal and demographic structure. This approach produces a more comprehensive measure of the extent of intergenerational redistribution stemming from government programs than traditional measures that are based solely on government debt and deficits.

The objectives of this paper are to determine the empirical relationships between economic performance, transfers and low income among Canadian families, and to explore whether these relationships have changed over time. Similar recent studies in the US find a weakening in the relationship between economic growth and low income reduction over the past 25 years. Using data from the Survey of Consumer Finances of Statistics Canada, we find that there is a statistically significant negative relationship between economic performance and the incidence of low income among families in Canada for the period from 1973 to 1995. Government transfers are also found to lift families above the low income threshold. These results are robust across different family types and for three different measures of low income.

We also find a weakening in the relationship between improved economic performance and low income reduction for most family types between 1973 and 1995, and for all family types after 1980. This weakening is associated with rising pre-transfer income inequality among families. Increasing inequality has also reduced the negative impact of transfers on low income rates.

The employment/population ratio is a good barometer of the state of the economy and an important though little-used labour market indicator. This article takes a look at the ratio's strengths and limitations, as well as its variation since 1946. Provincial and international comparisons are included.