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  • 1. Revising Statistics Canada's Low Income Measure (LIM) Archived
    Articles and reports: 75F0002M2010004
    Description:

    Statistics Canada introduced its Low Income Measure (LIM) in 1991 as a complement to its Low Income Cut-Offs (LICOs). The Low Income Measure (LIM) is a dollar threshold that delineates low-income in relation to the median income and different versions of this measure are in wide use internationally. Over the intervening 25 years there have been a number of useful methodological and conceptual developments in the area of low income measurement. To make the Canadian LIM methodology consistent with international norms and practices, a revision of the Statistics Canada LIM methodology appears desirable.

    This paper describes three modifications to the LIM that Statistics Canada plans to introduce in 2010: replacing the economic family by household; replacing the current LIM equivalence scale by the square root of household size; and taking household size into consideration in determining the low-income thresholds. The paper explains the rationale behind each modification and demonstrates the impacts the revisions will have on low-income statistics in comparison with those under the existing LIM. Overall the revisions do not have any significant effect on broad historic trends in low-income statistics in Canada. However, compared to the existing LIM the revised LIM produces lower estimates of low-income incidence for certain groups of individuals such as unattached non-elderly individuals.

    Release date: 2010-06-07
  • 2. International differences in low-paid work Archived
    Articles and reports: 75-001-X200910613231
    Geography: Canada
    Description:

    Like the United States and the United Kingdom, Canada has a higher proportion of low-paid jobs than Australia and most countries in continental Europe. While the differences with continental Europe highlight different approaches to the labour market, the much lower rate of low-paid work in Australia is more puzzling since that country shares many similarities with Canada. Differences in wage-setting mechanisms appear to play a role in explaining the disparity in rates of low-paid jobs.

    Release date: 2009-09-18
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  • 1. Revising Statistics Canada's Low Income Measure (LIM) Archived
    Articles and reports: 75F0002M2010004
    Description:

    Statistics Canada introduced its Low Income Measure (LIM) in 1991 as a complement to its Low Income Cut-Offs (LICOs). The Low Income Measure (LIM) is a dollar threshold that delineates low-income in relation to the median income and different versions of this measure are in wide use internationally. Over the intervening 25 years there have been a number of useful methodological and conceptual developments in the area of low income measurement. To make the Canadian LIM methodology consistent with international norms and practices, a revision of the Statistics Canada LIM methodology appears desirable.

    This paper describes three modifications to the LIM that Statistics Canada plans to introduce in 2010: replacing the economic family by household; replacing the current LIM equivalence scale by the square root of household size; and taking household size into consideration in determining the low-income thresholds. The paper explains the rationale behind each modification and demonstrates the impacts the revisions will have on low-income statistics in comparison with those under the existing LIM. Overall the revisions do not have any significant effect on broad historic trends in low-income statistics in Canada. However, compared to the existing LIM the revised LIM produces lower estimates of low-income incidence for certain groups of individuals such as unattached non-elderly individuals.

    Release date: 2010-06-07
  • 2. International differences in low-paid work Archived
    Articles and reports: 75-001-X200910613231
    Geography: Canada
    Description:

    Like the United States and the United Kingdom, Canada has a higher proportion of low-paid jobs than Australia and most countries in continental Europe. While the differences with continental Europe highlight different approaches to the labour market, the much lower rate of low-paid work in Australia is more puzzling since that country shares many similarities with Canada. Differences in wage-setting mechanisms appear to play a role in explaining the disparity in rates of low-paid jobs.

    Release date: 2009-09-18
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