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Poverty in Canada and the USA: Measurement, Trends and Implications

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  • Lars Osberg

Abstract

This paper begins by asking how poverty in affluent countries should be measured, before examining recent evidence on poverty intensity and its social significance. Section 1 advocates use of the Sen-Shorrocks-Thon index of poverty intensity and introduces the ""Poverty Box"" as a summary graphical representation. Recently, poverty intensity has increased in Canada while falling in the US. Although on a national basis Canadian poverty intensity remained below that in the US, by 1997 many US states were indistinguishable from Canadian provinces. Fixed effects regressions across states and provinces using Generalized Least Squares and bootstrap standard errors indicate that changes in the unemployment rate, unemployment insurance and social assistance are significant determinants of changes in poverty intensity. Since changes in trade exposure were not statistically significant, the general moral is that trade liberalization does not preclude the macro economic and social policy choices which can improve poverty outcomes. The paper concludes with a discussion of the social significance of income poverty, and its relationship to social exclusion and fundamental human rights.

Suggested Citation

  • Lars Osberg, 2000. "Poverty in Canada and the USA: Measurement, Trends and Implications," LIS Working papers 236, LIS Cross-National Data Center in Luxembourg.
  • Handle: RePEc:lis:liswps:236
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    1. Laura Castner & Scott Cody, "undated". "Trends in FSP Participation Rates: Focus on September 1997," Mathematica Policy Research Reports 4e27f82ba842464a92e19e2cb, Mathematica Policy Research.
    2. repec:mpr:mprres:2580 is not listed on IDEAS
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    Cited by:

    1. Picot, Garnett & Morissette, Rene & Myles, John, 2003. "Low-income Intensity During the 1990s: The Role of Economic Growth, Employment Earnings and Social Transfers," Analytical Studies Branch Research Paper Series 2003172e, Statistics Canada, Analytical Studies Branch.
    2. Michael Förster & Timothy Smeeding & David Jesuit, 2002. "Regional Poverty and Income Inequality in Central and Eastern Europe: Evidence from the Luxembourg Income Study," LIS Working papers 324, LIS Cross-National Data Center in Luxembourg.
    3. Picot, Garnett & Heisz, Andrew & Jackson, Andrew, 2002. "Winners and Losers in the Labour Market of the 1990s," Analytical Studies Branch Research Paper Series 2002184e, Statistics Canada, Analytical Studies Branch.
    4. 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.
    5. Bev Dahlby & Kevin Milligan, 2017. "From theory to practice: Canadian economists contributions to public finance," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1324-1347, December.
    6. Andrew Heisz & Andrew Jackson & Garnett Picot, 2001. "Distributional Outcomes in Canada During the 1990s," The Review of Economic Performance and Social Progress, in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s, volume 1, Centre for the Study of Living Standards;The Institutute for Research on Public Policy.
    7. Picot, Garnett & Myles, John, 2005. "L'inegalite du revenu et le faible revenu au Canada : une perspective internationale," Direction des études analytiques : documents de recherche 2005240f, Statistics Canada, Direction des études analytiques.
    8. Daniyal Zuberi, 2001. "Transfers Matter Most," LIS Working papers 271, LIS Cross-National Data Center in Luxembourg.
    9. 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.

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