Study: Low-paid workers: How many live in low-income families?

Low-paid workers in 2000 were, on average, no more likely to live in low income families than their counterparts 20 years earlier, according to a new study. However, some groups saw their risk of being in low income change.

The study showed in 2000, roughly 16% of full-time employees received relatively low earnings, defined as less than $375 per week. Of these individuals, 30% lived in low-income families, virtually unchanged from 1980, according to census data.

However, some groups were more vulnerable than others to change.

For example, 44% of low-paid recent immigrants who were not members of a visible minority were in low income in 2000, well above the proportion of 28% in 1980. The main reason for the increase is that the earnings of their spouse and of other family members fell substantially.

In contrast, the proportion of low-paid lone mothers in low income fell from 66% in 1980 to 56% in 2000, thanks mainly to an increase in government transfers.

While the proportion of full-time workers receiving low pay remained steady during the 20-year period, low-paid workers in 2000 earned less than their counterparts did in 1980. Their average weekly earnings fell 8% during the period.

In contrast, average weekly earnings of other full-time employees increased 13%, measured in 2000 constant dollars.

Yet low-paid workers—both those living in low income as well as others—did not appear to have experienced a decline in living standards during the period.

After accounting for changes in family size, their average family income grew a moderate 5%. This slight increase occurred because low-paid workers increased their number of weeks worked and benefited from increases in government transfers.

Definitions, data sources and methods: survey number 3901.

The article "Low-paid workers: How many live in low-income families?" is available in the October 2004 online edition of Perspectives on Labour and Income, Vol. 5, no. 10 (75-001-XIE, $6/$52).

For more information, or to enquire about the concepts, methods or data quality of this release, contact Lucy Chung (613-951-1903; lucy.chung@statcan.gc.ca), Business and Labour Market Analysis Division.