Low Income Over Time
Definition
Percentage of the population living with low income as defined by the Low Income Measure (After Tax).
The Low Income Measure (After-Tax) (LIM-AT) is one of the standard measures used by Statistics Canada to determine low income. The LIM-AT measures low income relative to a national standard. Based on the LIM-AT, a household is living on low income if its after-tax income is less than 50 percent of the national median household income after tax.
Median income refers to the amount of income that divides a population into two equally-sized groups, half with an income above the median, and half with an income below the median. So, for example, if the national median household income after tax were $60,000, a household would be considered to be living on low income if its income were half that level ($30,000) or less.
Measurement and Limitations
The Low Income Measure (After-Tax) is calculated for private households. People living in group homes, nursing homes or other ‘collective households’ are not included because their living arrangements and expenditure patterns can be quite different from those of persons living in private households.
Low income thresholds are calculated for households of different size taking economy of scales into account. LIM-AT income thresholds can be found at Low income measure (LIM) thresholds by income source and household size.
Conceptually, the LIM-AT is a relative measure of low income versus the Market Basket Measure which is an absolute measure. A relative measure indicates how people are doing in relation to other members of their society whereas an absolute measure indicates whether people are able to acquire the specific goods and services deemed necessary for a desired standard of living.
A strength of the LIM-AT is that it provides a way of comparing the income of Canadian households on a national basis; a limitation of the LIM-AT is that it does not take into account differences in the cost of living in different local and regional contexts.
Source
Statistics Canada. Table: 11-10-0018-01, “After-tax low income status of tax filers and dependents based on Census Family Low Income Measure (CFLIM-AT), by family type and family type composition,” Release date: 2024-06-27.
Low Income Over Time in the Sustainable Development Goals
Click on the SDG to reveal more information
1. End poverty in all its forms everywhere
Extreme poverty rates have been cut by more than half since 1990. While this is a remarkable achievement, one in five people in developing regions still live on less than $1.90 a day, and there are millions more who make little more than this daily amount, plus many people risk slipping back into poverty.
Poverty is more than the lack of income and resources to ensure a sustainable livelihood. Its manifestations include hunger and malnutrition, limited access to education and other basic services, social discrimination and exclusion as well as the lack of participation in decision-making. Economic growth must be inclusive to provide sustainable jobs and promote equality.