Family spending power
Jamie Carson
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Families with two or more adults have unadjusted incomes above the overall average because they have more potential earners. On the other hand, unattached individuals and lone parents have after-tax income averages just over half the overall average. Adjusting incomes to account for family size and composition-using an 'equivalence scale'-changes the picture.
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Based on the adjusted figures, the average family had the equivalent spending power of an unattached individual with $26,900 in after-tax income in 1999. Adjusted incomes fall into a narrower range, so the gap between the highest and lowest 20% falls from $8 (unadjusted) to $5 for every $1. This smaller gap indicates a tighter distribution when incomes are adjusted for family size.
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Many demographic trends contributed to changes in the size and type of families between 1980 and 1999. The family with two parents and children saw a decline, while other forms of household organization increased. The average family size in 1999 was 10% smaller than in 1980.
Author
Jamie Carson is with the Culture, Tourism and the Centre for Education Statistics Division. He can be reached at (613) 951-1094 or perspectives@statcan.gc.ca.
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