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Low-Income Intensity

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PPGPortal > Home > Concept Dictionary > K, L, M > Low-Income Intensity
 

Low-Income Intensity 

A measure of low-income that incorporates information on both the low-income rate (the proportion of the population below the low-income cut-off) and the low-income gap (the “depth” of low-income).

(Picot, Garnett, René Morissette, and John Myles, 2003.  “Low-income Intensity During the 1990s: The Role of Economic Growth, Employment Earnings and Social Transfers.” Published January 24, 2003. Ottawa: Statistics Canada. http://www.statcan.gc.ca/pub/11f0019m/11f0019m2003172-eng.pdf.)

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Low-income intensity is a measure of low-income that incorporates information on both the low-income rate (the proportion of the population below the low-income cut-off) and the low-income gap (the “depth” of low-income). The low-income gap is the difference between the low-income cut-off and the average family income (among low-income families), divided by the low-income cut-off. Hence, the gap represents the “depth” of low-income expressed as a proportion the low-income cut-off. A gap of 0.32 means that the average family income of low-income families was 32% below the low-income cut-off. An increase in the gap, say from 0.32 to 0.34, implies an increase in the “depth” of low-income.

     

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