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Data Dictionary: Canadian Census 2011
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Data Source:Statistics Canada
Table: T63. Household Income Status in 2010 Based on After-Tax Low-Income Measure for Private Households [6]
Universe: Households
Table Details
T63. Household Income Status in 2010 Based on After-Tax Low-Income Measure for Private Households
Universe: Households
Notes:

Excludes National Household Survey data for one or more incompletely enumerated Indian reserves or Indian settlements.

Income status can be measured in several different ways in household surveys. For the standard products of the National Household Survey, the line chosen is a relative measure: the after-tax low-income measure (LIM-AT). For this measure, the income used is after-tax income of households. There are no regional variations to account for prices or cost of living differences: all applicable households in Canada face the same line adjusted for household size. This line is set at half the median of adjusted household after-tax income. To account for potential economies of scale, the income of households with more than one member is divided by the square root of the size of the household. All household members are considered to share the household income and are attributed the same income status. Note:Low-income estimates in the 2011 National Household Survey For the 2011 National Household Survey (NHS), low-income statistics are presented based on the after-tax low-income measure (LIM-AT). This measure is not related to the low-income cut-offs (LICO) presented in the 2006 Census and prevalence rates are conceptually not comparable. Because of the sensitivity of certain income indicators to differences in methodology and response patterns, direct comparisons to establish trends with low-income estimates from other household surveys, administrative programs or the 2006 Census are discouraged. The prevalence rates observed in the NHS at the national level are generally 1 to 2 percentage points higher than seen for similar concepts in other programs. However, analysis of the NHS data suggests that it is valid to compare low-income data for different sub-populations within the NHS (i.e., for different geographic areas or demographic groups). For more information, refer to the Income Reference Guide, National Household Survey, Catalogue no. 99-014-X2011006.

'Concept not applicable': The low-income concepts are not applied in the territories and in certain areas based on census subdivision type (such as Indian reserves). The existence of substantial in-kind transfers (such as band housing) and sizeable barter economies or consumption from own production (such as product from hunting or fishing) could have made the interpretation of low-income rates more difficult.

Relevant Documentation:
Excerpt from: Social Explorer; Statistics Canada - Catalogue no. 99-000-X2011001 National Household Survey
 
Income status
Part A - Short definition
Refers to the position of a person, economic family, person not in an economic family aged 15 years or over, or household in relation to one of the low income lines.
Part B - Detailed definition
The income status can be defined in several ways.
Refers to the position of a person, economic family, person not in an economic family aged 15 years or over, or household in relation to one of the low income lines.
In the National Household Survey, definitions were created for six different lines. Five lines were defined by Statistics Canada:
  • low-income measure based on after-tax income (LIM-AT)
  • low-income measure based on before-tax income (LIM-BT)
  • low-income measure based on market income (LIM-MI)
  • low-income cut-off based on after-tax income (LICO-AT)
  • low-income cut-off based on before-tax income (LICO-BT).
One line was defined by Human Resources and Skills Development Canada (HRSDC):
  • HRSDC's Market Basket Measure (MBM).

Additional Information
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

DimensionsLow-income concept
Low Income Measures (LIM)Low-income cut-offs (LICO)Market Basket Measure (MBM)
GeographyOne level across CanadaSize of area of residence49 regions
Unit for incomeHouseholdsEconomic families and persons 15+ not in EFEconomic families and persons 15+ not in EF
Adjustment factorSquare root of household sizeDifferent lines based on size of economic family up to 7+ members categorySquare root of economic family size
IncomeAfter-tax income of households1After-tax income of economic families4Disposable income for MBM for economic families and persons not in economic families6
Household total income2  
Market income of households3Economic family total income5 
LineHalf the median of adjusted incomeIncome level at which families usually spend 20 percentage points more than the average family on shelter, food and clothing7Price 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.
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