Income Trends in Canada 1980
Contents
1. FE EE SS omm Income Statistics Bivisien 75F0002MIE 00001 Income Trends in Canada 1980 1997 User s Guide Prepared by R jean Lasnier January 2000 ivi pep mur mue Canada Data in many forms Statistics Canada disseminates data in a variety of forms In addition to publications both standard and special tabulations are offered Data are available on the Internet compact disc diskette computer printouts microfiche and microfilm and magnetic tape Maps and other geographic reference materials are available for some types of data Direct online access to aggregated information is possible through CANSIM Statistics Canada s machine readable database and retrieval system How to obtain more information Inquiries about this product and related statistics or services should be directed to Client Services Income Statistics Division Canada Ottawa Ontario K1A OT6 613 951 7355 888 297 7355 income statcan ca or to the Statistics Canada Regional Reference Centre in Halifax 902 426 5331 Regina 306 780 5405 Montr al 514 283 5725 Edmonton 403 495 3027 Ottawa 613 951 8116 Calgary 403 292 6717 Toronto 416 973 6586 Vancouver 604 666 3691 Winnipeg 204 983 4020 You can also visit our World Wide Web site http www statcan ca Toll free access is provided for all users who reside outside the local dialing area of any of the Regional Reference Centres National enquiries line 1 800 263 11362. National telecommunications device for the hearing impaired 1800 363 7629 Order only line Canada and United States 1 800 267 6677 Ordering Subscription information All prices exclude sales tax Catalogue no 75F0002MI E 00001 is available on internet for CDN 0 00 per issue Users can obtain single issues at http www statcan ca cgi bin downpub freepub cgi Standards of service to the public Statistics Canada is committed to serving its clients in a prompt reliable and courteous manner and in the official language of their choice To this end the agency has developed standards of service which its employees observe in serving its clients To obtain a copy of these service standards please contact your nearest Statistics Canada Regional Reference Centre Statistics Canada Income Statistics Division Income Trends in Canada 1980 1997 User s Guide Published by authority of the Minister responsible for Statistics Canada Minister of Industry 1999 All rights reserved No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any means electronic mechanical photocopying recording or otherwise without prior written permission from Licence Services Marketing Division Statistics Canada Ottawa Ontario Canada K1A OT6 January 2000 Catalogue no 75F0002MIE 00001 ISSN 0000 0000 Catalogue no 75F0002MPE 00001 ISSN 0000 0000 Frequency Irr Ottawa La v
3. Totinc x source x age for EF UI EF UI mil Tot inc quintiles upper limits shares for EF UI EF UI Tot inc quintiles upper limits shares x sex for IND Totinc x source x age x sex for IND Totinc x source x age x sex for IND mil Tot inc distribution of census families CF Tot inc distribution of persons not in CF Tot inc dist amp avgs x living arrangements of CF Avgs TI inc cap fam size nbr children amp recip for CF Avg TI x fam type with out children amp earn for CF Average total income by family type with or without children and earners for EF UI Can prov amp CMAs 1980 to 1997 constant 1997 dollars Tot inc by source and by age For each source nbr of recipients avg aggregates for EF UI EF UI Can prov amp CMAs 1993 to 1997 constant 1997 dollars Tot inc by source and by age For each source nbr of recip avg ager for EF UI EF UI incl military Can prov amp CMAs 1993 to 1997 constant 1997 dollars Tot inc quintiles upper limits and shares of aggregate tot inc for EF UI EF UI Can amp prov 1980 to 1997 constant 1997 dollars Tot inc quintiles upper limits and shares of aggregate tot inc by sex for IND with income Can amp prov 1980 to 1997 constant 1997 dollars Tot inc by source age and sex For each source nbr of recip avg aggr for IND with inc Can prov amp CMAs 1993 to 1997 constant 1997 dollars Tot inc by source a
4. and provincial income taxes Series 600 Income after tax This is defined as total income minus income tax paid Series 700 Multiple income concepts Tables in this series include data based on several income concepts for example total income and after tax income Statistics Canada 9 I5F0002M 00001 Series 800 Low income This series covers low income cutoffs LICOs low income estimates and rates 2 4 New Table Titles and Numbers Table numbers now reflect the new series More importantly the table titles and descriptions are now clearer and more meaningful Users wishing to compare last year s tables with this year s can consult the section entitled Concordance Table between Last Edition and This Edition Statistics Canada 10 75FO002M 00001 3 The Tables 3 1 Table Titles Each table has a short and long name Every effort has been made to make the titles meaningful However both short and long titles are constrained in the number of characters they can use Several abbreviations are necessary The table below contains the short and long table titles Section 3 2 has a list of commonly used abbreviations Series 100 Earnings Short title Long title 101 Distribution of earners x Distribution of earners by earnings and sex Can earnings x sex prov amp CMAs 1980 to 1997 current and constant 1997 dollars e Avg earnings fem male Average earnings and female male earnings ratios 102 earnings
5. of well being across countries compared to some international norm or whether poverty lines should be established according to the norms within each country Statistics Canada 35 75F0002M 00001 The proposed poverty lines have included among others relative measures you are poor if your means are small compared to others in your population and absolute measures you are poor if you lack the means to buy a specified basket of goods and services designated as essential Both approaches involve judgmental and hence ultimately arbitrary choices In the case of the relative approach the fundamental decision is what fraction of the overall average or median income constitutes poverty Is it one half one third or some other proportion In the case of the absolute approach the number of individual judgements required to arrive at a poverty line is far larger Before anyone can calculate the minimum income needed to purchase the necessities of life they must decide what constitutes a necessity in food clothing shelter and a multitude of other purchases from transportation to reading material The underlying difficulty is due to the fact that poverty is intrinsically a question of social consensus at a given point in time and in the context of a given country Someone acceptably well off in terms of the standards in a developing country might well be considered desperately poor in Canada And even within the same country
6. the outlook changes over time A standard of living considered as acceptable in the previous century might well be viewed with abhorrence today It is through the political process that democratic societies achieve social consensus in domains that are intrinsically judgmental The exercise of such value judgements is certainly not the proper role of Canada s national statistical agency which prides itself on its objectivity and whose credibility depends on the exercise of that objectivity In Canada the Federal Provincial Territorial Working Group on Social Development Research and Information was established to create a method of defining and measuring poverty This group created by Human Resources Development Canada and social services ministers in the various jurisdictions has proposed a preliminary market basket measure of poverty a basket of market priced goods and services Statistics Canada 36 75F0002M 00001 The poverty line would be based on the income needed to purchase the items in the basket Once governments establish a definition Statistics Canada will endeavour to estimate the number of people who are poor according to that definition Certainly that is a task in line with its mandate and its objective approach In the meantime Statistics Canada does not and cannot measure the level of poverty in Canada For many years Statistics Canada has published a set of measures called the low income cutoffs We reg
7. 0 31 Tot inc quintiles upper limits shares x sex for IND 411 28 Totinc x source x age x sex for IND 412 Statistics Canada 31 75F0002M 00001 29 Tot inc x source x age x sex for IND mil 413 6 Tot inc distribution of census families CF 414 7 Tot inc distribution of persons not in CF 415 40 Tot inc dist amp avgs x living arrangements of CF 416 41 Avgs TI inc cap fam size nbr children amp recip for CF 417 42 Avg TI x fam type with out children amp earn for CF 418 Series 600 Income After Tax 8 Income after tax dist of economic families EF 601 9 IAT distribution of unattached individuals UI 602 10 Income after tax distribution of EF UI 603 11 Income after tax distribution of individuals IND 604 22 Avg IAT x fam type with out children for EF UI 605 24 IAT quintiles upper limits and shares for EF UI EF UI 606 Series 700 Tables with multiple income concepts 18 Avgs shares ML TL IAT x quintile for EF UI EF UI 701 19 Avgs rates MI GT TL IT IAT x fam type for EF UI 702 20 Avgs ML TL IAT x IAT quintile for EF UI EF UI 703 21 Tax and gov transfers x TI quintile for EF UI EF UI 704 23 Avgs for all inc concepts for EF EF UI 705 IHR Series 800 Low Income ITC 25 Bef tax LICOs 1992 amp 1986 bases 801 1 Bef tax LICOs Preval nbr x age x sex for pers 802 35 Bef tax LICOs Preval nbr dist pers in out fam 803 32 Bef tax LICOs Preval for EF UI 1992 amp 1986 bases 806 36 Bef tax LICOs
8. Prevalence x fam type for EF UI 807 38 Bef tax LICOs Dist of fam pers x fam type EF UI 808 37 Bef tax LICOs Avg inc def x fam type for EF UI 809 39 Bef tax LICOs Def avgs aggr as of MI for EF UI 810 Statistics Canada 32 75FO002M 00001 11 Plans for Future Editions Income Trends in Canada is an annual product Every year the time series will be extended As well content expansions are being planned In particular after tax low income cutoffs and rates will appear in the 1998 edition of this product In the 1998 edition SLID data will also appear for the first time This will allow the inclusion of information on duration of low income spells among other topics Statistics Canada 33 75F0002M 00001 12 Questions and Comments If you have any questions about the data in this CD ROM product you can contact the Income Statistics Division Telephone 1 888 297 7355 or 613 951 7355 Facsimile Number 613 951 3012 Internet income statcan ca Income Statistics Division Statistics Canada Ottawa Ontario K1A OT6 If you have comments on this product you should direct them to R jean Lasnier Analyst Products and Marketing Development Unit Client Services Section Income Statistics Division Telephone 613 951 4084 Facsimile Number 613 951 3012 E mail lasnrej stacan ca Statistics Canada 34 I5F0002M 00001 Appendix On Poverty and Low Income The author of this article is Ivan P Fel
9. ansfers and low income These income estimates are derived from the Survey of Consumer Finances SCF and cover 1980 to 1997 For 1998 onward the Survey of Labour and Income Dynamics SLID will replace SCF and future editions of this product will include SLID as well as SCF data This guide contains a brief overview of SCF as well as the concepts and definitions underlying the data Income Trends in Canada uses Version 5 1 of the Beyond 20 20 Browser software for accessing and manipulating tables See Getting Started for more information To order a copy of Income Trends in Canada please refer to the appendix of the present guide Statistics Canada 7 75FO002M 00001 2 What s New Income Trends in Canada replaces Income Historical Review 1980 1996 Users familiar with the predecessor product will know that it contained 42 tables Six new tables have been added Most tables now include estimates for the 10 provinces and for 15 census metropolitan areas CMAs And of course another year of data 1997 has been added to the tables Several other changes make it easier to navigate through this very large database combining well over two million data points A description of the changes follows 2 1 Six New Tables Four new tables present estimates of market income that is earnings plus investment income and income from retirement pensions The other two new tables display information on government transfers and income taxes
10. ar Provincial tax credits the child tax benefit and the goods and services tax credit have not been deducted from income tax payable The value of the Quebec abatement for residents of Quebec has been removed from income tax payable Investment income This source of income includes interest received on bonds deposits and savings certificates from Canadian or foreign sources dividends received from Canadian and foreign corporate stocks cash dividends received from insurance policies net rental income from real estate and farms interest received on loans and mortgage interest regular income from an estate or trust fund and other investment income Note that realized capital gains are not counted as income for conceptual reasons Market income Market income is the sum of wages and salaries net income from self employment investment income and private pension income Miscellaneous income Scholarships alimony and other items not specified or included in the above categories Net income from self employment Net income gross income minus expenses received from self employment either on own account or in partnership in an unincorporated business or in independent professional practice Included here is net income from operating a farm as well as that received from roomers and boarders Payments for room and board received from relatives are not included Statistics Canada 22 75FO002M 00001 Net income from farm self employmen
11. as a de facto definition of poverty As long as that represents their own considered opinion of how poverty should be defined in Canada we have no quarrel with them all of us are free to have our own views But they certainly do not represent Statistics Canada s views about how poverty should be defined Statistics Canada 38 75F0002M 00001 Appendix II How to Order Income Trends in Canada Income Trends in Canada 1980 1997 costs 195 in Canada plus either GST and applicable PST or HST and US 195 outside Canada To order your copy online please complete the enclosed order form If you prefer to order by MAIL simply print the order form complete it and send it to Statistics Canada Dissemination Division Circulation Management 120 Parkdale Avenue Ottawa Ontario Canada K1A OT6 You may also send your order by FAX to 1 877 287 4369 or CALL us at 1 800 267 6677 For more information on ncome Trends in Canada 1980 1997 please contact your nearest Statistics Canada Statistics Canada 39 75F0002M 00001
12. bution of unattached unattached individuals UI individuals Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars Income after tax distribution Income after tax distribution of economic of EF UI families and unattached individuals together Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars Income after tax distribution Income after tax distribution of individuals with of individuals IND inc Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars Avg IAT x fam type Avg income after tax by family type with and with out children for EF UI without children and earners for EF UI Can prov amp CMAs 1980 to 1997 constant 1997 dollars IAT quintiles upper limits Income after tax quintiles upper limits and shares and shares for EF UI EF UI of aggregate income after tax for EF UI EF UI Can amp prov 1980 to 1997 constant 1997 dollars Statistics Canada 14 75FO002M 00001 Series 700 Tables with multiple income concepts Short title Long title Avgs shares MI TL IAT x Averages and shares by quintile ordered by quintile for EF UI EF UI different income concepts MI TI IAT for EF UI EF UI Can amp prov 1980 to 1997 constant 1997 dollars Avgs rates MI GT TI IT Avgs and rates for market inc gov transfers total IAT x fam type for EF UI inc inc tax inc after tax by family type for EF UI Can amp prov 1980 to 1997
13. constant 1997 dollars Avgs ML TLIAT x IAT Avgs for market inc tot inc IAT by quintiles quintile for EF UI EF UI ordered by inc after tax for EF UI EF UI Can amp prov 1980 to 1997 current and constant 1997 dollars Tax and gov transfers x TI Rates of inc tax and government transfers based quintile for EF UI EF UI on total inc by quintiles ordered with TI for EF UI EF UI Can amp prov 1980 to 1997 Avgs for all inc concepts for Avgs for all inc concepts and avg inc after tax EF EF UI within quintiles ordered by IAT for EF EF UI Can amp prov 1980 to 1997 constant 1997 dollars Series 800 Low income by age children and elderly and sex Can prov amp CMAs 1980 to 1997 Bef tax LICOs Preval nbr Bef tax LICOs Prevalence number distribution dist pers in out fam by age children and elderly and sex for persons in out EF Can prov amp CMAs 1980 to 1997 Bef tax LICOs Preval for EF Bef tax LICOs Prevalence by age and sex for EF UI 1992 amp 1986 bases UI 1992 amp 1986 bases Can prov amp CMAs 1980 to 1997 Bef tax LICOs Prevalence x Bef tax LICOs Prevalence by fam type with out fam type for EF UI children and earners for EF UI Can prov amp CMAs 1980 to 1997 Statistics Canada 15 75FO002M 00001 Bef tax LICOs Dist of Bef tax LICOs Dist of fam and persons living fam pers x fam type EF UI below by fam type for EF UI compared to dist of all fam and person
14. d living together in the same dwelling Never married children regardless of their age living with their parent s are considered a part of the Statistics Canada 25 75F0002M 00001 family i e a census family includes adult children as long as they are not married separated divorced or widowed Adopted children step children and guardianship children under 21 years of age are counted as own children Persons not in a census family are nevertheless part of the census family concept A person not in census family may be e living alone e living with unrelated individuals as a lodger employee or roommate e living with relatives but not in a husband wife or parent unmarried child including guardianship child relationship The head of a census family is determined as follows e In families consisting of married couples with or without children the husband is considered the head e In lone parent families with unmarried children the parent is the head As with economic family the determination of the head in a census family is based on relationships only The head is not necessarily the major earner or income recipient and may in fact have no income at all Children in a census family are sons and daughters including adopted and step children who have never married regardless of age and who are living in the same dwelling as their parent s Also included are never married guardianship children
15. d at the time of the survey Other Key Demographic Concepts Education A person s education is the highest level of schooling successfully completed at the time of survey Size of area of residence Also referred to as community size the size of area of residence distinguishes urban from rural communities and classifies urban communities into four groups under 30 000 30 000 99 000 100 000 499 000 and 500 000 and over The classification is based on 1996 Census geographic boundaries and 1991 Census population counts Work activity Work activity summarises the amount of work done by a person in the year as a whole into the following categories e Full year full time worker a person who worked mostly 30 or more hours per week for 49 to 52 weeks in the reference year e Other worker a person who worked mostly 29 or less hours per week for 49 to 52 weeks or worked less than 49 weeks in the reference year Statistics Canada 27 75FO002M 00001 8 Low Income Cutoffs Defined Low income cutoffs LICOs are thresholds used to classify unattached individuals and economic families as being in low income or not Cutoffs are calculated for seven family sizes that is unattached individuals and families of 2 3 4 5 6 and 7 They also vary by community size 5 The low income cutoffs are based on data from the Family Expenditure Survey They are derived by first calculating the proportion of income spent on food shelter and cl
16. ersion frangaise de cette publication est disponible sur demande Note of appreciation Canada owes the success of its statistical system to a long standing partnership between Statistics Canada the citizens of Canada its businesses governments and other institutions Accurate and timely statistical information could not be produced without their continued co operation and goodwill Income trends in Canada 1980 1997 User s guide Abstract This user s guide provides a detailed description of a new CD ROM ncome Trends in Canada 13F0022XCB It also provides a glossary a description of the major concepts as well as an overview of the data source the Survey of Consumer Finances Income Trends in Canada 1980 1997 contains 48 cross classified income tables covering the period 1980 to 1997 Most tables include estimates for Canada the 10 provinces and 15 census metropolitan areas CMAs Major topics included in the tables are income distributions and inequality earnings of men and women income tax government transfers low income and sources of income More Beyond 20 20 software used in this product allows users to execute very easily common tasks done by analysts and researchers browse rapidly data select data of interest graph or map them or simply save them in a worksheet Then from instantaneous graph it is very easy to find out trends and pull out highlights Note Income Trends in Canada replaces Income Hist
17. g procedures over the years but most estimates are conceptually consistent since 1971 Historical SCF data for the period 1980 to 1993 are consistent with 1991 Census based population estimates and they incorporate an adjustment for net undercoverage and for non permanent residents A major change to the income statistics program is now taking place whereby SCF is being integrated with the Survey of Labour and Income Dynamics SLID in order to harmonize data concepts and to reduce costs Starting with reference year 1998 SLID will be the source of annual cross sectional income estimates This integration will enhance the information available for the analysis of cross sectional income data because of the more comprehensive demographic cultural family and labour market information collected in SLID In addition SLID is a longitudinal survey and it is therefore possible to analyse such issues as income stability and the duration of spells of low income Statistics Canada 19 75F0002M 00001 6 Income Concepts This section reviews the definition of major income sources and the relationship between detailed sources and higher level summary categories In addition terms frequently used in income measurement are defined For ease of reference the concepts have been alphabetically arranged Following the definitions is a table that shows the relationship between detailed and summary income sources See Classification of Income Sources A
18. ge and sex For each source nbr of recip avg aggr for IND with inc incl military Can prov amp CMAs 1993 to 1997 constant 1997 dollars Total income distribution of census families Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars Total income distribution of persons not in census families Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars Average total income and distribution by living arrangement of census families Can prov amp CMAs 1980 to 1997 constant 1997 dollars Averages for tot inc inc per cap fam size nbr of children amp inc recip amp earners for census families Can prov amp CMAs 1980 to 1997 constant 1997 dollars Average total income by family type with or without children and earners for census families Can prov amp CMAs 1980 to 1997 constant 1997 dollars Statistics Canada 13 75F0002M 00001 Series 500 Income tax Short title Long title Inc tax x inc after tax Income tax by IAT quintiles for EF UI EF UI quintiles for EF UI EF UI average tax rates of tax shares of aggregate tax Can amp prov 1980 to 1997 constant 1997 dollars Series 600 Income after tax Short title Long title Income after tax dist of Income after tax distribution of economic economic families EF families Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars IAT distribution of Income after tax distri
19. law relationship or adoption Thus all relatives living together at the time of the survey form one economic family Some families existing at the time of the survey are not a family during the entire reference year No adjustment is made to account changes in family composition throughout of the year A person living alone or in a household where he or she is unrelated to any other household member is defined as an unattached individual Unattached individuals are part of the economic family universe The head of an economic family is determined as follows e In families consisting of married couples with or without children the husband is considered the head e In lone parent families with unmarried children the parent is the head e In lone parent families with married children the member who is mainly responsible for the maintenance of the family becomes the head e In families where relationships are other than husband wife or parent child normally the eldest in the family is considered the head The determination of the head is based on relationships only The head is not necessarily the major earner or income recipient and may in fact have no income at all Census family A census family sometimes referred to as an immediate family or nuclear family consists of either a husband or wife with or without children who have never married or a parent with one or more children who have never marrie
20. legi Chief Statistician of Canada Recently the news media have provided increasing coverage of Statistics Canada s low income cutoffs and their relationship to the measurement of poverty At the heart of the debate is the use of the low income cutoffs as poverty lines even though Statistics Canada has clearly stated since their publication began over 25 years ago that they are not The high profile recently given to this issue has presented Statistics Canada with a welcome opportunity to restate its position on these issues Many individuals and organizations both in Canada and abroad understandably want to know how many people and families live in poverty and how these levels change Reflecting this need different groups have at different times developed various measures which purported to divide the population into those who were poor and those who were not In spite of these efforts there is still no internationally accepted definition of poverty unlike measures such as employment unemployment gross domestic product consumer prices international trade and so on This is not surprising perhaps given the absence of an international consensus on what poverty is and how it should be measured Such consensus preceded the development of all other international standards The lack of an internationally accepted definition has also reflected indecision as to whether an international standard definition should allow comparisons
21. ment trans by IAT quintiles for EF UI quintiles for EF UI EF UI EF UI Avg trans rates of trans shares of aggregate trans Can amp prov 1980 to 1997 constant 1997 dollars Series 400 Total income Total income distribution of Total income distribution of economic families economic families EF Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars Total income distribution of Total income distribution of unattached unattached individuals UI individuals Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars Total income distribution of Total income dist of economic families and EF UI unattached individuals together Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars Total income distribution of Total income distribution of EF UI EF UI Can EF UI EF UI prov amp CMAs 1980 to 1997 constant 1997 dollars Total income distribution of Total income distribution of IND with income individuals IND Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars Avgs TI inc cap fam size Averages for tot inc inc per cap fam size nbr of nbr children amp recip for EF children amp inc recip amp earners for EF Can prov amp CMAs 1980 to 1997 constant 1997 dollars Statistics Canada 12 75FO002M 00001 Avg TI x fam type with out children amp earn for EF UI Totinc x source x age for EF UI EF UI
22. n this table on the screen while one is using the FIND box to examine the list of the data tables Statistics Canada 18 I5F0002M 00001 5 Overview of the Survey of Consumer Finances Prior to 1998 the Survey of Consumer Finances SCF was conducted as a supplement to the Labour Force Survey each April The survey was designed to provide reliable estimates on average income and income distribution for individuals and families The data support trend analysis on the economic well being of Canadian families by various socio demographic and labour force characteristics Among the many income topics covered by the survey are low income female to male earnings ratios average family income income after tax the effects of government transfers and income taxes on family incomes as well as the major source of income for different families and individuals The target population for the survey is all persons aged 15 and over residing in Canada with the exception of people in the territories residents of institutions people living on Reserves and full time members of the Canadian Armed Forces living in barracks Income data collected in April refer to the previous calendar year In recent years the sample has consisted of approximately 35 000 households or about 65 000 individuals The individual response rate for the survey was approximately 80 SCF became an annual survey in 1971 There were modifications to data collection and processin
23. nings Wages and salaries Net self employment income Net farm self employment income Net non farm self employment income including Net partnership income Investment income total not taxable Interest including interest from outside Canada Dividends Other investment income including Net rental income Pension income Retirement pensions superannuation and annuities RRSP annuities and RRIF withdrawals but not RRSP withdrawals Government transfers Old Age Security Guaranteed Income Supplement Spouse s Allowance Canada Pension Plan Quebec Pension Plan benefits Child Tax Benefit Employment Insurance benefits Workers Compensation GST credit Provincial tax credits Social assistance and Provincial income supplements Veterans Pension Other income from government sources Other income Alimony separation allowance child support Money from outside household Income tax payable Income after tax Note While capital gains and RRSP withdrawals are income sources that are taxable neither is included in the concept of total income Statistics Canada 24 75FO002M 00001 7 Family and Other Key Concepts Income estimates are produced for both economic and census families This section provides definitions and illustrations of the two family concepts and then looks at key demographic concepts Economic family An economic family is a group of individuals sharing a common dwelling unit who are related by blood marriage common
24. nstant 1997 dollars Distribution in constant dollars Aggregate Average Distribution Estimated Female to male ratio Number Prevalence Other abbreviations Arrange Bef Charact Def Educ Gov Marital With out Living arrangements Before Characteristics of census families and persons not in CF Deficiency income deficiency Education Government Marital status With or without Statistics Canada 17 75F0002M 00001 4 Getting Started When you open the Data Browser in Beyond 20 20 you will find the table of contents or the FIND dialog box Within this box there are three other dialog boxes called CATEGORIES NAME and TITLE CATEGORIES There are eight categories of tables listed here corresponding to different income concepts or topics and to the table groupings outlined above in section 2 3 of this guide NAME After selecting one or more categories this box lists the short titles of all tables included in the highlighted categories To see all tables in all categories click on ALL button at the top right of the FIND box TITLE By clicking once on a table name in the NAME box the TITLE box displays the long title for this table To open the selected table click twice in the NAME box or click on the OK button in the FIND box TABLE 000 Table Title Abbreviations provides a list of all abbreviations used in table titles along with the meaning of each abbreviation It is possible to ope
25. orical Review 1980 1996 TABLE OF CONTENTS Tr MIRO CUCTIORN ete e tens 7 ZAR d UECAND UV X ee eee 8 22 OD NSN TSbIOS eee en ne DPI 8 2 2 Provincial and Metropolitan Dale ccc cce leat RR ERES 8 2 9 New Groupings for Tables i2 9949949099999999999999999 099 0 0 0 90 9 2 4 New Table Titles and Numbers eeeeeen 10 S The dDleS ciat e ME 11 Bil PADIS DH cct tOLCO NOLO NND DDODDODM E 11 2 2 Histor Abrev atO S ao dd aU RID MADIUU UN ASA DNI P SAM 16 4 Getting Started M T 18 5 Overview of the Survey of Consumer Finances 19 6 Income Gyo e12 oj m 20 7 Family and Other Key Concepts cccccccceeeeeeeeeeeteeeeeeeeeeneeees 25 8 Low Income Cutoffs Defined eeeeeeeeeesesseeeeeeee 28 9 Data Reliability and Suppression ssesss 29 10 Concordance Table between Last Edition and This Edition 31 11 Plans for Future Editions 620i ito 0114 des LUR DROP Bin edebant ades bavaad ou 33 12 Questions and Comments ccccccccceseeeeeeceeeeeaeeeeeeeeeeeeeeesaaaeees 34 Appendix On Poverty and Low Income sssssssss 35 Appendix Il How to Order Income Trends in Canada 39 1 Introduction Income Trends in Canada is an extensive collection of income statistics on CD ROM covering topics such as income distributions income tax government tr
26. othing for all households and determining the average To this average figure 20 percentage points are added The LICO is then determined as the average income of families who spend this proportion of their income on food shelter and clothing LICOs are periodically rebased to reflect changes in expenditure patterns The most recent rebasing occurred in 1992 In that year the average family spent 34 7 of its pre tax income on food shelter and clothing so the LICOs currently in use show families where more than 54 7 of income is likely to be spent on these essentials In between years where this rebasing is done the LICOs are updated using CPI to reflect changes in the cost of living This product includes 1986 base LICOs as well since some data users are still using these Table 800 presents 1986 base LICOs as well as 1992 base LICOs Users interested in reading more on the LICO methodology should consult Measuring Low Income and Poverty in Canada an Update http www statcan ca english research 75F0002MIE 98 13e pdf Should the Low Income Cutoffs Be Updated A Discussion Paper http www statcan ca english research 75F0002MIE 99009 pdf A note on poverty and low income by the Chief Statistician is also presented in appendix Statistics Canada 28 75F0002M 00001 9 Data Reliability and Suppression This data product does not contain any coefficients of variation standard errors or any other measures of data reliability H
27. owever data reliability cutoffs have been established Any data value which does not exceed the relevant cutoff has been suppressed and is replaced by a dash The cutoffs have been established based on average variances of a number of income variables In general data values that are not suppressed have a coefficient of variation less than 33 and are reliable enough to use Suppressed values will have a coefficient of variation greater than 33 and are not reliable enough to use In some situations it is possible for a user to derive a suppressed value For example a row total is published along with the all values in the row except one The suppressed value can be determined by summing all the non suppressed values and subtracting it from the total It is highly recommended that a user not derive suppressed values in this manner The use of unreliable estimates may lead to a misleading analytical interpretation The suppression cutoffs used for this version of Income Trends in Canada are listed below A separate value is used for each level of geography Cutoffs for CMA level data are identical to that used for the province in which the city is located For Ottawa Hull the cutoffs for Ontario are used CANADA 13 000 weighted estimate Atlantic 4 000 Newfoundland 2 500 Prince Edward Island 1 500 Nova Scotia 4 000 New Brunswick 2 500 Quebec 14 000 Statistics Canada 29 75F0002M 00001 Ontario Prairies Mani
28. paid These tables provide averages rates and shares of the total by after tax income quintiles All tables provide estimates for various subgroups of the population 2 2 Provincial and Metropolitan All but one of the 48 tables now include provincial data Forty tables also present estimates for the 15 largest CMAs in Canada listed below Users should note that this massive increase in content entails some suppression due to small sample sizes See Data Reliability and Suppression for more information Statistics Canada 8 75FO002M 00001 The CMAs covered in Income Trends in Canada are Halifax Qu bec Montr al Ottawa Hull Toronto St Catharines Niagara Hamilton Burlington Kitchener Waterloo London Windsor Winnipeg Calgary Edmonton Vancouver and Victoria 2 3 New Groupings for Tables A step by step classification scheme groups tables into eight series as follows Series 100 Earnings This is income from employment which represents the greatest portion of income for most people Series 200 Market income Also known as income before transfers market income is the sum of earnings plus income from investments and retirement pensions Series 300 Government transfers Income received from programs instituted by the different levels of government Series 400 Total income The sum of market income and government transfers Series 500 Income tax The amount paid in federal
29. ratios x work by work activity Can prov amp CMAs 1980 to activity 1997 constant 1997 dollars e Number of earners x sex x Number of earners by sex and work activity Can 1 03 work activity prov amp CMAs 1980 to 1997 constant 1997 dollars os e mata sats Can pov CRAG 1980001997 104 age educ marital status marital status Can prov amp CMAs 1980 to 1997 os Dist of dual single and no Dist and average total income of dual earn single 105 earn husband wife fam earn no earn for husband wife fam Can prov amp CMAs 1980 to 1997 constant 1997 dollars Series 200 Market income Short title Long title Market income distribution Market income distribution of economic 201 of economic families EF families Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars Market income distribution Market income distribution of unattached of unattached individuals UI individuals Can prov amp CMAs 1980 to 1997 current and constant 1997 dollars Statistics Canada 11 75FO002M 00001 Market income distribution Market income distribution of EF UI Can prov of EF UI amp CMAs 1980 to 1997 current and constant 1997 dollars Market income distribution Market income distribution of EF UI EF UI of EF UI EF UI Can prov amp CMAs 1980 to 1997 constant 1997 dollars Series 300 Government transfers Short title Long title Gov transfers x IAT Govern
30. s Can prov amp CMAs 1980 to 1997 Bef tax LICOs Avg inc def Bef tax LICOs Avg income deficiency by family 809 x fam type for EF UI type for EF UI Can prov amp CMAs 1980 to 1997 Bef tax LICOs Def avgs Bef tax LICOs Deficiency averages and ager as of MI for EF UI aggregates as of market income for EF UI Can prov amp CMAs 1980 to 1997 3 2 List of Abbreviations Universes mil Includes military CF Census families Earn Earners EF Economic families EF UI Economic families and unattached individuals together Fam Families Fam pers Families and persons IND Individuals Pers Persons Recip Recipients UI Unattached individuals Income concepts Cap Capita CPP Canada Pension Plan benefits Cutoff base Low income cutoff base year GIS Guaranteed Income Supplement GST Goods and services tax credit GT Government transfers IAT Income after tax Inc Income Inc cap Income per capita IT Income tax Statistics Canada 16 75FO002M 00001 LICO MI OAS QPP RRSP SPA TI Trans Tot inc Geography Can CMA Prov Statistics X C 9o C K 1997 9o K Aggr Avg Dist Estim Fem male Nbr Preval Low income cutoff Market income Old Age Security Pension Quebec Pension Plan benefits Registered retirement savings plan Spouse s Allowance Total income Transfers Total income Canada Census metropolitan area Province By Current dollars Distribution in current dollars Co
31. stment is made to account for income of persons who are members of the family for part of the year and who left because of marriage death or other reasons Families or individuals that immigrated to Canada during the reference year and earned some income abroad and some in Canada are classified by their income while residing in Canada Government transfers All social welfare payments from federal provincial and municipal governments such as Old Age Security Guaranteed Income Supplement Spouse s Allowance Canada and Quebec Pension Plan income Employment Insurance benefits worker s compensation training allowances veteran s pensions social assistance pensions for the blind and the disabled Federal and provincial refundable tax credits are also included e g goods and services tax credit child tax benefits Income after tax Income after tax is total income less income tax payable Statistics Canada 21 75FO002M 00001 Income quintile Quintile data are compiled by ranking families or individuals by their income in ascending order Then the array is divided into five equal parts or quintiles In a majority of cases the ranking is based on after tax income However some tables show quintiles where the ranking is based on other income concepts Income tax payable In general income tax payable for a given reference year is the sum of federal and provincial income taxes payable on income and capital gains for that ye
32. t is to be reported by individuals who operate their own or a rented farm either on own account or in partnership Net income from farming is calculated by subtracting farm operating expenses and depreciation of farm assets from farm cash receipts The latter are to include all money receipts from the sale of farm products as well as supplementary and assistance payments from governments Income in kind is excluded Pension income Pension income includes retirement pensions annuities and superannuation plus RRSP annuities and RRIFs Registered Retirement Income Funds It excludes RRSP withdrawals Total income Total income is the sum of market income and government transfers It is sometimes also referred to as income before tax Wages and salaries Gross wages and salaries from all jobs during the year before deductions for such items as income taxes employment insurance and pension plans and excluding fringe benefits Commission income received by salespersons as well as occasional earnings for baby sitting for delivering papers for cleaning etc are also included in this category All income in kind such as meals or living accommodation is excluded Where individuals received military pay in the form of reserve military pay and where this is a minor part of total income such income is combined with wages and salaries Statistics Canada 23 75F0002M 00001 Classification of Income Sources Total income Market income Ear
33. toba Saskatchewan Alberta British Columbia 14 500 6 500 6 500 2 500 6 000 11 000 Statistics Canada 30 75F0002M 00001 10 Concordance Table between Last Edition and This Edition Tables in Income Trends in Canada ITC have been grouped differently than they were in Income Historical Review IHR the predecessor product For users familiar with Income Historical Review this section shows the table number concordance between the two products IHR Income Historical Review 1980 1996 ITC Income Trends in Canada 1980 1997 IHR Series 100 Earnings ITC 13 Distribution of earners x earnings x sex 101 14 Avg earnings fem male earnings ratios x work activity 102 16 Number ofearners x sex x work activity 103 15 Fem male earnings ratios x age educ marital status 104 12 Dist of dual single and no earn husband wife fam 105 IHR Series 400 Total Income ITC 2 Total income distribution of economic families EF 401 3 Total income distribution of unattached individuals UI 402 4 Total income distribution of EF UI 403 17 Total income distribution of EF UI EF UI 404 5 Total income distribution of individuals IND 405 33 Avgs TI inc cap fam size nbr children amp recip for EF 406 34 Avg TI x fam type with out children amp earn for EF UI 407 26 Totinc x source x age for EF UI EF UI 408 27 Totinc x source x age for EF UI EF UI mil 409 30 Tot inc quintiles upper limits shares for EF UI EF UI 41
34. ularly and consistently emphasize that these are quite different from measures of poverty They reflect a well defined methodology which identifies those who are substantially worse off than the average Of course being significantly worse off than the average does not necessarily mean that one is poor Nevertheless in the absence of an accepted definition of poverty these statistics have been used by many analysts to study the characteristics of the relatively worst off families in Canada These measures have enabled us to report important trends such as the changing composition of this group over time For example 20 to 30 years ago the elderly were by far the largest group within the low income category while more recently lone parent families headed by women have grown in significance Many people both inside and outside government have found these and other insights to be useful As a result when Statistics Canada carried out a wide ranging public consultation a decade ago we were almost unanimously urged to continue to publish our low income analyses Furthermore in the absence of a generally accepted alternative methodology the majority of those consulted urged us to continue to use our present definitions Statistics Canada 37 75FO002M 00001 In the absence of politically sanctioned social consensus on who should be regarded as poor some people and groups have been using the Statistics Canada low income lines
35. verage Rate of Government Transfers Government transfers as a percentage of total income Constant Dollars For historical comparison income data for all years are expressed in the dollar values of the most recent year i e income in constant dollars Constant dollars show income adjusted using the Consumer Price Index CPI The following table presents the CPI from 1980 to 1997 For example 5 000 in 1984 is equivalent to 5 000 x 107 6 72 1 7 462 in 1997 constant dollars In simple terms 7 462 in 1997 can purchase the same as 5 000 in 1984 Consumer Price Index 1980 1997 Statistics Canada 20 I5F0002M 00001 Earner An earner is a person who received wages or a salary and or income from self employment during the reference year Earnings The term earnings is synonymous with employment income It includes wages and salaries earned by persons who worked for others and net income from self employment Effective Average Tax Rate Income tax payable as a percentage of total income Family income see family definitions below Family income consists of incomes received by all individuals 15 years of age and over who at the time of the survey formed either one economic or census family Income data are collected from each member and considered to be part of the family s income even if certain family members belonged to another family unit for the whole or part of the preceding calendar year Also no recall or adju
36. who are under 21 years of age and live in the same dwelling Comparison of Census and Economic Families The definition of economic family is broader than the census family The two familial relationships in census family are marriage including common law and or parent children as long as the children are never married Due to its broader definition an economic family can be divided into e two or more census families e acensus family with one or more persons not in census families present at the time of the survey e a group of persons not in families this group of persons can be related but not in husband wife or parent unmarried child relationship Statistics Canada 26 I5F0002M 00001 For example parents living with their married son and his wife would be considered as part of the economic family whereas in census family terms both couples are counted as separate families one economic family of size four becomes two census families of two persons each In other cases related individuals like an elderly widowed parent are absorbed into the economic family whereas according to the census family definition they are persons not in families An economic family can be made up of two or more related individuals such as sisters or brothers but according to the census family definition they will be persons not in families Family size refers to the total number of persons in the family economic or census as constitute
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