Low income cutoffs for 2003 and low income measures for 2001

Low income cutoffs (LICOs) for 2003 and low income measures (LIMs) for 2001, before and after tax, are now available.

The updated thresholds for both measurements are contained in a single publication, Low income cutoffs from 1994 to 2003 and low income measures from 1992 to 2001. The 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, where low income families will devote a larger share of income to the necessities of food, shelter and clothing than the average family would. To reflect the differences in the costs of necessities among different community and family sizes, LICOs are defined into five categories of community size and seven categories of family size.

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.

Definitions, data sources and methods: survey numbers, including related surveys, 3502 and 3889.

The publication Low income cutoffs from 1994 to 2003 and low income measures from 1992 to 2001, no. 2 (75F0002MIE2004002, free) is now available online. From the Our products and services page, under Browse our Internet publications, choose Free, then Personal finance and household finance.

For more information, contact Client Services (1-888-297-7355; 613-951-7355; fax: 613-951-3012; income@statcan.gc.ca), Income Statistics Division.