Employment insurance, social assistance and other transfers

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  • 1. Social Transfers, Earnings and Low-income Intensity Among Canadian Children, 1981-96: Highlighting Recent Development in Low-income Measurement Archived
    Articles and reports: 11F0019M2000144
    Geography: Canada
    Description:

    In this paper, we revisit trends in low-income among Canadian children by taking advantage of recent developments in the measurement of low-income intensity. We focus in particular on the Sen-Shorrocks-Thon (SST) index and its elaboration by Osberg and Xu. Low-income intensity declined in the 1980s but rose in the 1990s. Declining earnings put upward pressure on low-income levels over much of the period. Higher transfers more than offset this pressure in the 1980s and continued to absorb a substantial share of the increase through 1993. In contrast, the rise in low-income intensity after 1993 reflected reductions in UI and social assistance benefits that were not offset by increased employment earnings, at least to 1996 the latest year used in this paper.

    A major aim of the paper is methodological. We contrast results using the SST index with results produced by the more familiar low-income rate, the usual measure for indexing low-income trends. The low-income rate is embedded in the SST index, but unlike the index, the rate incorporates only partial information on the distribution of low-income. Consequently, the low-income rate is generally unable to detect the changes we describe and this is true irrespective of the choice of low-income cut-off. Compared to the low-income intensity measure, the rate is also relatively insensitive to changes in transfer payments and employment earnings.

    Release date: 2000-03-30
  • 2. The Maturation of Canada's Retirement Income System: Income Levels, Income Inequality and Low Income Among the Elderly Archived
    Articles and reports: 11F0019M2000147
    Geography: Canada
    Description:

    This paper revisits trends in the level and distribution of income among Canadian seniors in the context of what is arguably the major source of change in these trends since the end of the seventies, the maturation of Canada's public and private earnings-related pension systems. The expanded role of earnings-related pensions in the 1980s and 1990s is largely the result of changes that occurred in the 1950s and 1960s. The Canada and Quebec Pension Plans (C/QPP) were implemented in 1966 and the first cohort to receive full C/QPP benefits turned 65 in 1976. Cohorts retiring after this period were also the beneficiaries of the expansion of private occupational pensions that took place between the 1950s and the 1970s. The author relies on a detailed decomposition of income by source to show that not only did the maturation of these earnings-related programs produce a substantial increase in average real incomes but also to a substantial reduction in income inequality among the elderly, due mainly to C/QPP benefits. Rising real incomes went disproportionately to lower income seniors contributing to the well-known decline in low-income rates among the elderly.

    Release date: 2000-03-06
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  • 1. Social Transfers, Earnings and Low-income Intensity Among Canadian Children, 1981-96: Highlighting Recent Development in Low-income Measurement Archived
    Articles and reports: 11F0019M2000144
    Geography: Canada
    Description:

    In this paper, we revisit trends in low-income among Canadian children by taking advantage of recent developments in the measurement of low-income intensity. We focus in particular on the Sen-Shorrocks-Thon (SST) index and its elaboration by Osberg and Xu. Low-income intensity declined in the 1980s but rose in the 1990s. Declining earnings put upward pressure on low-income levels over much of the period. Higher transfers more than offset this pressure in the 1980s and continued to absorb a substantial share of the increase through 1993. In contrast, the rise in low-income intensity after 1993 reflected reductions in UI and social assistance benefits that were not offset by increased employment earnings, at least to 1996 the latest year used in this paper.

    A major aim of the paper is methodological. We contrast results using the SST index with results produced by the more familiar low-income rate, the usual measure for indexing low-income trends. The low-income rate is embedded in the SST index, but unlike the index, the rate incorporates only partial information on the distribution of low-income. Consequently, the low-income rate is generally unable to detect the changes we describe and this is true irrespective of the choice of low-income cut-off. Compared to the low-income intensity measure, the rate is also relatively insensitive to changes in transfer payments and employment earnings.

    Release date: 2000-03-30
  • 2. The Maturation of Canada's Retirement Income System: Income Levels, Income Inequality and Low Income Among the Elderly Archived
    Articles and reports: 11F0019M2000147
    Geography: Canada
    Description:

    This paper revisits trends in the level and distribution of income among Canadian seniors in the context of what is arguably the major source of change in these trends since the end of the seventies, the maturation of Canada's public and private earnings-related pension systems. The expanded role of earnings-related pensions in the 1980s and 1990s is largely the result of changes that occurred in the 1950s and 1960s. The Canada and Quebec Pension Plans (C/QPP) were implemented in 1966 and the first cohort to receive full C/QPP benefits turned 65 in 1976. Cohorts retiring after this period were also the beneficiaries of the expansion of private occupational pensions that took place between the 1950s and the 1970s. The author relies on a detailed decomposition of income by source to show that not only did the maturation of these earnings-related programs produce a substantial increase in average real incomes but also to a substantial reduction in income inequality among the elderly, due mainly to C/QPP benefits. Rising real incomes went disproportionately to lower income seniors contributing to the well-known decline in low-income rates among the elderly.

    Release date: 2000-03-06
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