Low Income in Canada: 2000-2006 Using the Market Basket Measure

Human Resources and Social Development Canada (HRSDC) has just released a new report, Low Income in Canada: 2000-2006 Using the Market Basket Measure. The Market Basket Measure (MBM) is a more robust proxy indicator of poverty in Canada compared to other principal low income measures.

Using the MBM, this report documents a decline in the incidence of low income from 2000-2006, from 14.6% to 11.9%. The 11.9% markedly contrasts with the 10.5% incidence of low income using the Low Income Cut-Off After Tax (LICO AT). The LICO AT is perhaps the most widely used proxy indicator of poverty. In other words, using the MBM one could conclude that the poverty rate in Canada in 2006 was 12% higher than that inferred from LICO AT data.

More Information

"Poverty Measures Canadian Resources" - Canadian Social Research Links