Reported in: 2011
Reported for: Population in private households and, depending on the definition used, economic families and persons not in economic families aged 15 years and over in private households or, private households.
Question no.: Derived variable
Responses: Below the line - In low income;
At or above the line - Other;
Not applicable.
Remarks: Four dimensions generally distinguish the low-income lines:
- any geographical variations
- aggregation or unit of analysis
- the income variable to test
- equivalence scale for units of different sizes
They are summarily presented in Table 3.1.
Full details are explained in each definition:
- Low-income measure after-tax (LIM-AT)
- Low-income measure before-tax (LIM-BT)
- Low-income measure of market income (LIM-MI)
- Low-income after-tax cut-off (LICO-AT)
- Low-income before-tax cut-off (LICO-BT)
- HRSDC's Market Basket Measure (MBM).
Members of a housheold all share the same income status for the LIM-AT, LIM-BT and LIM-MI.
Members of an economic family all share the same income status for LICO-AT and LICO-BT.
The low income concept does not apply to the full population in private households. For the purposes of low income statistics, units in the Yukon Territory, Northwest Territories and Nunavut and on Indian reserves were excluded (see Area of residence - On reserve for the full criteria).
The low income after-tax cut-offs were based on certain expenditure–income patterns which are not available from survey data for the entire population.
It is also felt that in certain areas, the consumption of hunting or fishing products, barter economies or substantial in-kind transfers may reduce the interpretability of income-based measures.
See also Prevalence of low income, Low-income gap and Severity of low income.
Refer to the data quality notes in the
Income Reference Guide, National Household Survey, 2011.
Tables 3.1 Summary of low-income lines in the 2011 National Household Survey
Dimensions |
Low-income concept |
Low Income Measures (LIM) |
Low-income cut-offs (LICO) |
Market Basket Measure (MBM) |
Geography |
One level across Canada |
Size of area of residence |
49 regions |
Unit for income |
Households |
Economic families and persons 15+ not in EF |
Economic families and persons 15+ not in EF |
Adjustment factor |
Square root of household size |
Different lines based on size of economic family up to 7+ members category |
Square root of economic family size |
Income |
After-tax income of households1
|
After-tax income of economic families4
|
Disposable income for MBM for economic families and persons not in economic families6
|
Household total income2
|
|
|
Market income of households3
|
Economic family total income5
|
|
Line |
Half the median of adjusted income |
Income level at which families usually spend 20 percentage points more than the average family on shelter, food and clothing7
|
Price of the basket of goods and services for the reference family8
|
|
Notes: |
1For the Low-income measure after-tax (LIM-AT). |
2For the Low-income measure before-tax (LIM-BT). |
3For the Low-income measure of market income (LIM-MI). |
4For the Low-income after-tax cut-offs (LICO-AT). |
5For the Low-income before-tax cut-offs (LICO-BT). |
6For HRSDC's Market Basket Measure (MBM). |
7Based on estimates from the 1992 Family Expenditure Survey adjusted to 2010 dollars with the Consumer Price Index (CPI). |
8The contents of the basket were defined by Human Ressources and Skills Development Canada, prices were measured by Statistics Canada. |
Source: Statistics Canada, Income Statistics Division.