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Human Resources and Skills Development Canada

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Low Income in Canada: 2000-2007 Using the Market Basket Measure - August 2009

1. Introduction

The Market Basket Measure (MBM) is a measure of low income based on the cost of a specified basket of goods and services. It was designed to complement two Statistics Canada measures of low income- the Low Income Cut-offs (LICOs) based on average consumption patterns and the Low Income Measure (LIM) based on median incomes. An advantage of the MBM compared to these two measures is its greater sensitivity to geographical differences in living costs.

This report is based on MBM data from 2000 to 2007. The report examines the incidence, depth and persistence of low income nationally as well as for the five groups at high risk of persistent low income (lone parents; unattached individuals aged 45 to 64; persons with work-limiting disabilities; recent immigrants; and Aboriginal Canadians living off-reserve) and the working poor. National and provincial incidence and depth data for all persons by main age groups, sex and economic family types are included as well as MBM thresholds for 2007. Footnote 3

Section II of this report provides a brief discussion of low income measures in Canada. Section III provides a description of the MBM. Section IV examines incidence Footnote 4, depth Footnote 5 and persistence Footnote 6 of low income in Canada for the period 2000 to 2007 and compares 2007 results to those using Statistics Canada's post-income tax Low Income Cut-offs (LICOs-IAT).

The remainder of the report focuses on working-age Canadians and their children. Section V examines the incidence, depth and persistence of low income among the “working poor.’ Section VI focuses on five specific socio-demographic groups most likely to experience persistent low income and their children.

  • 3 All income data in this report are from Statistics Canada's Survey of Labour and Income Dynamics. Return to reference 3
  • 4 The incidence of low income, for any low income measure, is the percentage of the population living in economic families (families of two or more persons plus unattached individuals) where the total gross or disposable income falls below the low income thresholds calculated using that measure. Return to reference 4
  • 5 The depth of low income is the percentage gap between any low income threshold and the actual income of any family of two or more persons or any unattached individual with an income below the threshold for their family. Return to reference 5
  • 6 Persons are said to be in persistent low income if the total income of their family over a period of years falls below the combined low income thresholds for the families in which they resided over that period of years. Return to reference 6

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Date Modified:
2011-12-14