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Low-Income Intensity During the 1990s: The Role of Economic Growth, Employment Earnings and Social Transfers

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  • Garnett Picot
  • René Morissette
  • John Myles

Abstract

This paper assesses the role played by changes in economic growth, employment earnings, and government transfers in the patterns of low-income intensity in Canada during the 1980s and the 1990s. We find that lowincome intensity was higher in most provinces during the 1990s than during the 1980s (comparing comparable positions in the business cycle). During the 1990s changes in government transfers did not offset the fall in employment earnings among lower-income families, as they did during the 1980s, resulting in an increase in low-income intensity. Whether or not the relationship between economic growth and low-income intensity weakened in any kind of permanent way during the 1990s as compared to the 1980s is unclear from this analysis.

Suggested Citation

  • Garnett Picot & René Morissette & John Myles, 2003. "Low-Income Intensity During the 1990s: The Role of Economic Growth, Employment Earnings and Social Transfers," Canadian Public Policy, University of Toronto Press, vol. 29(s1), pages 15-40, January.
    • Handle: RePEc:cpp:issued:v:29:y:2003:i:s1:p:15-40
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    References listed on IDEAS

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    Cited by:

    1. Picot, Garnett & Myles, John, 2005. "Income Inequality and Low Income in Canada: an International Perspective," Analytical Studies Branch Research Paper Series 2005240e, Statistics Canada, Analytical Studies Branch.
    2. Johnson, Anick & Morissette, Rene, 2004. "Earnings of Couples with High and Low Levels of Education, 1980-2000," Analytical Studies Branch Research Paper Series 2004230e, Statistics Canada, Analytical Studies Branch.
    3. Robert Andersen & M. McIvor, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Canada," GINI Country Reports canada, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. Ricciuto, Laurie E. & Tarasuk, Valerie S., 2007. "An examination of income-related disparities in the nutritional quality of food selections among Canadian households from 1986-2001," Social Science & Medicine, Elsevier, vol. 64(1), pages 186-198, January.

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