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Wednesday, March 3, 1999
For release at 8:30 a.m.
1970-1995
Between 1970 and 1995, real average family income increased 32.0%. However, this increase was not spread evenly across all families. The share of total income going to families lower on the income scale declined slightly during the 25-year period, while it increased fractionally for those at the upper levels.
Over these two-and-a-half decades, major changes occurred in family composition, including a rise in the number of female lone-parent and dual-earner families. Some of these changes appeared in the income distributions where, for example, those in the lowest portions were increasingly female lone-parent families.
Families were arranged from lowest to highest income and divided into 10 equal groups, or deciles, for each of the five years covered by the censuses. This permitted the study of changes both in the share of total income going to each decile as well as the types of families found in each.
The increase in real average family income from 1970 to 1995 ranged from 19.4% among families in the third decile to 37.0% among families in the ninth.
Overall, the share of total income going to families in the top 3 deciles (or 30% of all families taken as a group) increased during the 25-year period. In contrast, the share of the families in the bottom 7 deciles (the remaining 70% of all families taken as a group) declined.
These losses and gains followed the recessions of the early 1980s and 1990s. Families in the low- to middle-income groups felt the losses more strongly.
Family size has a direct effect on the standard of living enjoyed by family members. Since average family size declined from 3.72 persons in 1970 to 3.05 in 1995, families were generally better off financially. Compared with the overall increase of 32.0% in average family income, average income per family member increased 60.9% over the period.
This release is based on a statistical portrait of family income titled "Family income: 25 years of stability and change" published today in the Spring 1999 issue of Perspectives on labour and income. This article complements a more technical study on family income inequality published in the Winter 1998 issue.
Data came from censuses conducted from 1971 to 1996. Each census collected information on income in the year preceding it.
A census family is a now-married or common-law couple (with or without never-married children of either or both partners), or a lone parent of any marital status with at least one never-married child living in the same dwelling.
Family income is the sum of the total incomes of all members aged 15 and over during the calendar year preceding the census. It consists of wages and salaries, net income from farm and non-farm self-employment, government transfer payments, investment income, retirement pensions and other money income.
A decile is one-tenth of a total distribution. In this analysis, families have been arranged from lowest to highest income and divided into 10 equal groups, or income deciles.
A younger family is a family headed by a person aged 25 to 34.
An elderly family is a family headed by a person 65 or over.
Family structure changed substantially compared with the relatively slight changes in the share of total family income going to each decile between 1970 and 1995. The number of female lone-parent families more than doubled. In 1995, they accounted for 12% of all families compared with 7% in 1970.
Since female lone-parent families usually have smaller incomes, their share of families in the lower income deciles increased. In the bottom decile, for example, female lone-parent families accounted for 40% of all families in 1995 compared with 24% in 1970.
The number of families in which both partners worked increased steadily and substantially during the 25-year period. Because they were more numerous, these families made up a larger proportion of almost every decile. By 1995, four out of five families in the top two deciles were dual-earner families.
In terms of age, elderly families accounted for 27% of families in the lowest decile in 1970; this proportion dropped to just 6% by 1995. Younger families have since become most common in this decile. The proportion increased from 18% in 1970 to 27% in 1995, reflecting, in part, the disproportionately large growth of female lone-parent families. Government transfer payments (a major source of income for 20% of all families in 1995) have eased many elderly families into higher income groups.
Income shares of families are affected by two fiscal measures: government transfer payments, which augment the incomes of families, especially those with low incomes; and personal income taxes, which reduce the income of families who pay them, especially higher-income families.
Without government transfer payments, over half a million families would have had no income and another 21,000 would have had negative income (e.g. those reporting losses from farm or business operations).
Incomes before government transfers and after income taxes were also studied. In 1995, the income share of families in the lowest five deciles (that is, 50% of all families) was 18% of the total before taxes and transfers. Transfer payments increased their share to 24% and personal income taxes further enhanced it to 29%.
The Spring 1999 issue of Perspectives on labour and income (75-001-XPE, $18/$58) is now available. See How to order publications.
For more information, or to enquire about the concepts, methods, or data quality of this release, contact Abdul Rashid (613-951-6897; rashabd@statcan.gc.ca), Income Statistics Division.
Table: Upper limits of family income and distribution of aggregate family
income by deciles
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1970 1980 1985
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upper limit in 1995$
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Decile
First 11,968 16,343 15,786
Second 19,318 24,287 23,368
Third 25,884 32,747 31,271
Fourth 31,427 40,294 39,055
Fifth 36,622 47,404 46,433
Sixth 42,194 54,742 54,248
Seventh 48,392 63,203 62,764
Eighth 56,816 74,196 73,974
Ninth 71,318 92,745 92,725
% share of aggregate income
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First 1.46 1.48 1.49
Second 3.78 3.80 3.75
Third 5.48 5.38 5.18
Fourth 6.97 6.90 6.70
Fifth 8.20 8.25 8.13
Sixth 9.53 9.61 9.55
Seventh 10.96 11.09 11.09
Eighth 12.60 12.86 12.94
Ninth 15.25 15.50 15.64
Tenth 25.77 25.13 25.53
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1990 1995
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upper limit in 1995$
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Decile
First 17,549 15,158
Second 25,860 23,184
Third 34,413 31,097
Fourth 42,295 38,988
Fifth 50,111 46,951
Sixth 58,176 55,355
Seventh 67,568 64,997
Eighth 79,903 77,501
Ninth 100,751 98,253
% share of aggregate income
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First 1.64 1.45
Second 3.78 3.55
Third 5.27 4.96
Fourth 6.69 6.42
Fifth 8.05 7.86
Sixth 9.44 9.37
Seventh 10.95 10.91
Eighth 12.80 13.11
Ninth 15.53 15.85
Tenth 25.85 26.53
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Source: Census of Canada
January to September 1998(preliminary)
Canadian ports handled 270.3 million tonnes of domestic and international cargo during the first nine months of 1998, a slight decrease (-0.1%) from the same period in 1997.
Available on CANSIM: matrices 145 and 146.
Preliminary statistics for January to September 1998 will be published in of Surface and marine transport service bulletin, vol. 15, no. 3 (50-002-XIB, $10/$62). See How to order publications.
For more information, or to enquire about the concepts, methods and data quality of this release, contact Robert Larocque (613-951-2486; fax: 613-951-0009; laroque@statcan.gc.ca ), Transportation Division.
Spring 1999
The Spring issue of Perspectives on labour and income features an article titled "Family income: 25 years of stability and change", a statistical profile of family income from 1970 to 1995. The article looks at the changes in the shares of total income going to families in the lower, middle and upper sections of the income distribution. It also examines more substantial changes in the types of families typically found in each of these income distribution sections.
In addition, this issue has articles on seasonality in employment (which examines the changes in seasonal employment patterns over the past two decades), obtaining a job (which examines how worker and firm traits influence the matching of jobs and workers), paying off student loans and private security personnel compared with public police forces.
The Spring 1999 issue of Perspectives on labour and income (75-001-XPE, $18/$58) is now available. See How to order publications.
For more information, contact Henry Pold (613-951-4608; poldhen@statcan.gc.ca), Labour and Household Surveys Analysis Division.
Cereals and oilseeds review, December 1998
Catalogue number 22-007-XPB
(Canada: $15/$149; outside Canada: US$15/US$149).
Livestock statistics updates, vol. 98, no. 4
Catalogue number 23-603-UPE
(Canada: $45/$149; outside Canada: US$45/US$149).
Pulpwood and wood residue statistics, December 1998
Catalogue number 25-001-XIB
(Canada: $6/$55; outside Canada: US$6/US$55).
Sawmills and planing mills, December 1998
Catalogue number 35-003-XPB
(Canada: $12/$114; outside Canada: US$12/US$114).
Particleboard, oriented strandboard and fibreboard, December 1998
Catalogue number 36-003-XPB
(Canada: $7/$62; outside Canada: US$7/US$62).
Coal and coke statistics, December 1998
Catalogue number 45-002-XPB
(Canada: $12/$114; outside Canada: US$12/US$114).
Service bulletin, Aviation, vol. 31, no. 2
Catalogue number 51-004-XIB
(Canada: $8/$82; outside Canada: US$8/US$82).
Electric power statistics, December 1998
Catalogue number 57-001-XPB
(Canada: $12/$114; outside Canada: US$12/US$114).
Energy statistics handbook, February 1999
Catalogue number 57-601-XDE
(Canada: $284; outside Canada: US$284).
Energy statistics handbook, February 1999
Catalogue number 57-601-UPB
(Canada: $387; outside Canada: US$387).
Perspectives on labour and income, Spring 1999
Catalogue number 75-001-XPE
(Canada: $18/$58; outside Canada: US$18/US$58).
All prices exclude sales tax.