The Daily. Friday, November 23, 2001

Low-income cutoffs for 2000 and low-income measures for 1999

Low-income cutoffs (LICOs) for 2000 and low-income measures (LIMs) for 1999, before and after tax, are now available.

The updated thresholds for both measurements are contained in a single publication. This publication incorporates a detailed description of the methods used to arrive at both measurements. It also explains how base years are defined and how LICOs are updated using the Consumer Price Index.

LICOs are income thresholds, determined by analysing family expenditure data, below which families will likely devote a larger share of income to the necessities of food, shelter and clothing than the average family would. To reflect differences in the costs of necessities among different community and family sizes, LICOs are defined for five community-size and seven family-size categories.

LIMs, on the other hand, are strictly relative measures of low income, set at 50% of adjusted median family income. These measures are categorized according to the number of adults and children present in families, reflecting the economies of scale inherent in family size and composition.

Although LICOs are often referred to as poverty lines, they have no official status as such, and Statistics Canada does not recommend their use for this purpose. For more information, refer to the article, "On poverty and low income" in this new publication or on Statistics Canada's Web site () under Statistical Methods, then Discussion Papers.

The publication Low Income Cutoffs from 1991 to 2000 and Low Income Measures from 1990 to 1999 (75F0002MIE01007, free) is available on Statistics Canada's Web site (). Choose Our products and services, and then Research papers.

For more information, to order this report or custom tabulations, or to enquire about the concepts, methods or data quality of this release, contact Client Services (1-888-297-7355; 613-951-7355; fax: 613-951-3012; income@statcan.gc.ca), Income Statistics Division.