Income mapping
While the MEA includes more detail by income category, the DHEA estimates include a reduced number of categories relevant to the household sector for which quality distributions can be produced.
Since, as noted above, the household disposable income concept is not measured directly in the SPSD/M, in order to assign SPSD/M households to equivalized disposable income quintiles, disposable income must first be estimated for each household as follows:
- The MEA household disposable income aggregate is broken down into components (for example compensation of employees, transfers to and from other sectors, etc.) for which corresponding variables or proxies can be found on the SPSD/M.
- For each of these components, the MEA benchmark is distributed over SPSD/M households according to the distribution shown for the corresponding SPSD/M variable or proxy.
- For each household, the distributed components are summed to the household’s estimated disposable income.
The result is a new income variable for each SPSD/M household more closely aligned with the macroeconomic concept of household disposable income. The DHEA mapping for each income concept is shown in the table below. As mentioned previously, while DHEA income is not published at the full MEA level of detail, this information is used internally to map SPSD/M to the macroeconomic income concept.
| DHEA income category | MEA disposable income concept | Distribution variable/proxy from SPSD/M |
|---|---|---|
| Compensation of employees | Wages and salaries Employer contributions to registered pension plans Employer contributions to Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) Employer contributions to Employment Insurance Workers’ compensation (employer paid to fund) Welfare Retirement allowances |
Wages and salaries Employee contributions to registered pension plans Employee contributions to Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) Employee contributions to Employment Insurance Wages and salaries Wages and salaries Wages and salaries |
| Mixed income | Non-farm and farm income Rental income, actual Gross imputed rent |
Self-employment income Interest and other investment income Property tax billed on household’s principal residence |
| Property income received | Dividends Interest income derived from deposits, bonds, mortgages, treasury bills Interest from life insurance plans Interest on pension plans Unfunded pension liability Implicit income on deposits Implicit income on insurance Miscellaneous investment income Foreign investment income |
Dividends Interest and other investment income Wages and salaries Employee registered pension plan contributions plus a fixed share of pension income Employee registered pension plan contributions plus a fixed share of pension income Interest and other investment income Wages and salaries Interest and other investment income Interest and other investment income |
| Property income paid | Interest on consumer credit Interest on mortgages Interest paid by non-farm unincorporated business Interest paid by farm unincorporated business |
Equally distributed Estimated proxy for distributions of gross imputed rent, derived from payments for mortgages, condominium charges, mortgage insurance premiums, and maintenance cost of vacation homes (before 2012). Annual mortgage payment, excluding property taxes (2012 and beyond) Self-employment income, excluding agriculture (before 2012) and Self-employment income afterwards Self-employment income in agriculture (before 2012) and Self-employment income afterwards |
| Current transfers received | From non-profit institutions serving households (NPISH) From corporations Family and youth allowances Child Tax Benefit Universal Child Care Benefit (introduced in 2006) Employment Insurance benefits Old Age Security Goods and Services Tax Credit Military veterans' benefits Research and scholarship grants Social assistance: income maintenance Social assistance: Family benefits Social assistance: Other Social insurance benefits, workers’ compensation Social insurance benefits, other CPP/QPP benefits Other transfers - Working income tax benefit (WITB) - Registered education savings plan grants & bonds - Canada student loan program - Transfers to students from provinces and colleges - Local government social assistance - Other transfers (residual) From non-residents |
Allocated to households with income of less than $50,000 and based on the number of kids Pension income Total federal child benefits Total federal child benefits Universal Child Care Benefit (introduced in 2006) Employment Insurance benefits Old Age Security, Guaranteed Income Supplement and Spousal Allowance Federal sales tax / Goods and Services Tax Credit Sum of all transfers from government to households Other taxable income for full-time students in post-secondary institutions under 35 years old Social assistance benefits Sum of all provincial family allowance programs Federal sales tax/goods and services tax credit Workers' compensation benefits Quebec Parental Insurance Plan calendar year benefits CPP/QPP benefits Working income tax benefit Number of kids in household Tuition fees Tuition fees Social assistance benefits Residual government transfers not listed in “current transfers received” Distributed equally among all households |
| Current transfers paid | To NPISH To corporations Federal income tax Provincial income tax Contributions to social insurance plans - To federal govt (EI) - To provincial government - Workers’ compensation program - Other programs - CPP/QPP Other government payments - Motor vehicle and drivers licences - Health insurance premiums - Residual (other) To non-residents |
Charitable donations and government gifts Interest on pension plans and on unfunded pension liability, as included in the property income section above, and contributions to registered pension plans Federal income tax Provincial income tax Employee EI contributions Employment income Employee EI contributions Employee CPP/QPP contributions Equally allocated to households with motor vehicles Sum of taxes to federal and provincial governments Sum of taxes to federal and provincial governments Gifts of money and support payments to person living outside Canada |
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Source: Statistics Canada, System of Macroeconomic Accounts and Social Policy Simulation Database and Model. |
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