Measuring and Responding to Income Poverty
DOI:
https://doi.org/10.11575/sppp.v12i0.58433Abstract
This paper discusses and describes measures of poverty and, on the basis of that discussion, proposes a public policy response that more closely and more easily targets income support to where it is most needed and most effective. Our review of poverty measures shows there are many holes that prevent advocates and policy-makers from obtaining a clear picture of who is in poverty and the depth of that poverty. The Market Basket Measure is the most finely tuned to identifying where impoverished families live and that is in large part why it was recently adopted by the federal government to gauge its anti-poverty policies. The government of Alberta, on the other hand, evaluates its policies using a measure of poverty that allows no consideration that costs of living might vary by community. Social assistance is the main policy instrument through which the federal and provincial governments provide assistance to people in need. We show that the growing emphasis of increasing social-assistance support via child benefits provides no increase in support in what has been for some time the majority of social-assistance cases. What’s more, despite a great deal of evidence that the cost of meeting basic needs varies widely by community, the amount of assistance provided is the same regardless of where one lives in the province. We propose a modification to how social assistance is provided that makes allowances for the fact poverty is deeper in some parts of the province than others and that provides support to individuals and families whether or not they have children. Our proposal is superior to rent control as a means of dealing with falling housing affordability, removes barriers to people receiving social assistance from moving to seek employment, and has features similar to a guaranteed basic income. It is also inexpensive. We estimate the cost of our proposal to be equivalent to less than one per cent of the provincial health-care budget.References
Armitage, A. (2003) Social Welfare in Canada, Toronto: Oxford University Press.
Atkinson, A.B., L. Rainwater and T. M. Smeeding (1995), Income Distribution in OECD Countries, OECD Social Policy Studies, No. 18, Paris.
Aldridge, H. (2017), “How do we Measure Poverty?” Backgrounder, Maytree Foundation, May.
Boychuk, G. (2006) “Slouching Toward the Bottom? Provincial Social Assistance Provision in Canada, 1980-2000” in Kathryn Harrison (editor) Racing to the Bottom? Provincial Interdependence in the Canadian Federation, UBC Press.
Briggs, A. and C. Lee (2012) “Poverty Costs: An Economic Case for a Preventative Poverty Reduction Strategy in Alberta,” Vibrant Communities Calgary http://vibrantcalgary.com/wp-content/uploads/2017/02/poverty-costs_feb06-2012.pdf
Cobham, A. and A. Sumner (2013) “Is it All About the Tails? The Palma Measure of Income Inequality,” Center for Global Development, Working Paper 343, September.
Corak, M. (2016), “’Inequality is the Root of Social Evil,’ or Maybe Not? Two Stories about Inequality and Public Policy,” Canadian Public Policy, Volume 42, Issue 4, December.
Government of Alberta (2018), Annual Report, Community and Social Services. https://open.alberta.ca/dataset/20f7bf5e-3b69-4400-8785-5b195e1491f1/resource/ca6f040b-7cf9-4ad8-a8ca-2b301341f554/download/community-social-services-annual-report-2017-2018.pdf
Diamond, R., T. McQuade, and F. Qian, (2018) “The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco,” NBER Working Paper No. 24181, January.
Ference & Company Consulting Ltd. (nd), “Tackling Poverty Together,” https://www.canada.ca/en/employment-social-development/programs/poverty-reduction/reports/tackling-poverty-together.html#h2.5
Finn, Dan & Goodship, Jo. (2014). Take-up of benefits and poverty: an evidence and policy review. JRF/CESI Report.
Goering, P., S. Veldhuizen, A. Watson, C. Adair, B. Kopp, E. Latimer, G. Nelson, E. MacNaughton, D. Streiner and T. Aubry (2014). National At Home/Chez Soi Final Report. Calgary, AB: Mental Health Commission of Canada.
Government of Alberta (2018), Fiscal Plan, Budget 2018.
Hatfield, M., W. Pyper, and B. Gustajtis, (2010), “First Comprehensive Review of the Market Based Measure of Low Income: Final Report,” Human Resources and Skills Development Canada.
Hicks, P. (2018), “Measuring Poverty? Let’s Get Empirical,” Policy Options, January.
HRSDC (2010), “First Comprehensive Review of the Market Basket Measure of Low Income, Final Report,” June. http://publications.gc.ca/collections/collection_2011/rhdcc-hrsdc/HS28-178-2010-eng.pdf
Kneebone, R. and M. Wilkins (2016a), “Shrinking the Need for Homeless Shelter Spaces,” SPP Research Papers, School of Public Policy, Volume 9, Issue 21, May.
Kneebone, R. and M. Wilkins (2016b), “The Very Poor and the Affordability of Housing,” SPP Research Papers, School of Public Policy, Volume 9, Issue 27, September.
Macdonald, D. (2018), “Born to Win: Wealth Concentration in Canada since 1999,” Canadian Centre for Policy Alternatives https://www.policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2018/07/Born%20to%20Win.pdf
Murphy, B., X. Zhang, and C. Dionne (2012), “Low Income in Canada: a Multi-line and Multi-index Perspective,” Income Research Paper Series, Income Statistics Division, Statistics Canada.
Noel, A. (2017), “How do We Measure Poverty?,” Policy Options, November. http://policyoptions.irpp.org/magazines/november-2017/how-do-we-measure-poverty/
Omar, Heba (2018), “Equivalence Scales and Child Poverty: A Closer Look at Different Family Types across Developed Countries,” LIS Newsletter, Issue No. 5 (March). http://www.lisdatacenter.org/wp-content/uploads/files/nl-2018-5.pdf
Robson, J. and P. Nares (eds) (2006), “Wealth and Well-Being Ownership and Opportunity: New Directions in Social Policy for Canada,” Social Enterprise and Development Innovations.
Robson, J. (2008), “Wealth, Low-Wage Work and Welfare: The Unintended Consequences of Provincial Needs-Tests.” Toronto, Ontario: Social and Enterprise Development Innovations.
Schanzenback, D., R. Nunn, L. Bauer, and M. Mumford (2016). “Where does all the Money Go: Shifts in Household Spending over the Past 30 Years.” http://www.hamiltonproject.org/papers/where_does_all_the_money_go_shifts_in_household_spending_over_the_past_30_y
Social Metrics Commission (2018). A New Measure of Poverty for the UK.
Stapleton, J. (2009), Why Don’t We Want the Poor to Won Anything?” Metcalfe Foundation.
The Council on Aging (2018), “Toward a ‘New Canada Poverty Line’ (NCPL): Input to the Canadian Poverty Reduction Strategy,” https://coaottawa.ca/wp-content/uploads/documents/Toward-a-Poverty-Line-22APRIL2018.pdf
Tweddle, A., K. Battle, and S. Tjorman (2017). “Welfare in Canada, 2016.” Canada Social Report, The Caledon Institute of Social Policy. https://maytree.com/wp-content/uploads/Welfare_in_Canada_2016.pdf
Wilkins, M. and R. Kneebone (2018a), “The Energy Boom and Income Growth,” Social Policy Trends, School of Public Policy, January.
Wilkins, M. and R. Kneebone (2018b), “Social Assistance Caseloads in Alberta by Family Composition,” Social Policy Trends, School of Public Policy, April.
Wilkinson, Richard G. (2005). The impact of inequality: how to make sick societies healthier. London: Routledge
Zhang, X. (2010), “Low Income Measurement in Canada: What Do Different Lines and Indexes Tell Us?” Income Research Paper Series, Statistics Canada. http://www.statcan.gc.ca/pub/75f0002m/75f0002m2010003-eng.pdf
Downloads
Additional Files
Published
Issue
Section
License
The following is the copyright statement of SPPP.
Copyright © <Author name> <year>. This is an open-access paper distributed under the terms of the Creative Commons license CC BY-NC 4.0, which allows non-commercial sharing and redistribution so long as the original author and publisher are credited.
Publication Copyright and Licensing
The following guidelines and information, provided in six sections, are intended for authors (the “Author”) who are invited to write a paper (the “Work”) for The School of Public Policy Publications (the “Publisher”). The rights and responsibilities conveyed in the SPP Author Agreement will only apply once your paper is accepted for publication. At that point in the publication process, you will be asked to download the form and return a signed copy via e-mail to spppublications@ucalgary.ca. Please review the below information to ensure agreement with SPPP policies.
Section 1: Author’s Grant of Rights
In consideration of the Publisher’s agreeing to publish the Work in The School of Public Policy Publications, the Author hereby grants to the Publisher the following:
1.1 The irrevocable, royalty-free right to publish, reproduce, publicly display, publicly perform and distribute the Work in perpetuity throughout the world in all means of expression by any method or media now known or hereafter developed, including electronic format;
1.2 The irrevocable, royalty-free right to use the Author’s name and likeness in association with the Work in published form and in advertising and promotional materials related to the Work; and
1.3 The irrevocable, royalty-free right to license others to do any or all of the above.
Section 2: Prior Publication & Publication by Others
2.1 The Author agrees not to publish the Work, or authorize any third party to publish the Work, either in print or electronically, prior to publication of the Work by the Publisher.
2.2 The Author agrees not to publish the Work in any publication outlet which is substantially similar to The School of Public Policy Publications for a period of six (6) months after publication of the Work in The School of Public Policy Publications. Substantially similar is defined as a non-subscription, open-access publication outlet with a similar mandate/vision and intended audience.
2.3 Should the Author publish or distribute the Work elsewhere at any time or in any alternate format, the Author agrees to contact The School of Public Policy Publications to inform them of the subsequent publication.
2.4 Should the Author publish or distribute the Work elsewhere at any time or in any alternate format, the Author agrees to make reasonable efforts to ensure that any such additional publication cites the publication in The School of Public Policy Publications by author, title, and publisher, through a tagline, author bibliography, or similar means. A sample acknowledgement would be:
“Reprinted with permission from the author. Originally published in the The School of Public Policy Publications, http://www.policyschool.ca/publications/.”
Section 3: Editing and Formatting
The Author authorizes the Publisher to edit the Work and to make such modifications as are technically necessary or desirable to exercise the rights in Section 1 in differing media and formats. The Publisher will make no material modification to the content of the Work without the Author’s consent.
Section 4: Author’s Ownership of Copyright and Reservation of Rights
4.1 Nothing in this agreement constitutes a transfer of the copyright by the Author, and the copyright in the Work is subject to the rights granted by this agreement.
4.2 The Author retains the following rights, including but not limited to, the right:
4.2.1 To reproduce and distribute the Work, and to authorize others to reproduce and distribute the Work, in any format;
4.2.2 To post a version of the Work in an institutional repository or the Author’s personal or departmental web page so long as The School of Public Policy Publications is cited as the source of first publication of the Work (see sample acknowledgement above).
4.2.3 To include the Work, in whole or in part, in another work, subject to Section 2 above and provided that The School of Public Policy Publications is cited as the source of first publication of the Work (see sample acknowledgement above).
4.3 The Editors and Editorial Board of The School of Public Policy Publications requires authors to publish the Work under a Creative Commons Attribution-NonCommercial 4.0 International licence (CC BY-NC 4.0). This license allows others to distribute, remix, tweak, and build upon the Work for noncommercial purposes, and ensures the Author is credited for the original creation. This onward licensing is subject to section 2.4 of this agreement, which further ensures that the original publisher is credited.
Section 5: Author’s Warranties and Undertakings
The Author warrants that:
5.1 The Author is the sole author of the Work, or if a joint author, the Author has identified within the Work the other authors, and holds the copyright, either solely or jointly, and has the power to convey the rights granted in this agreement.
5.2 The Work has not previously been published, in whole or in part, except as follows:
5.3 Any textual, graphic or multimedia material included in the Work that is the property or work of another is either explicitly identified by source and cited in the Work or is otherwise identified as follows:
5.4 To the best of the Author’s knowledge, the Work does not contain matter that is obscene, libelous, or defamatory; it does not violate another’s civil right, right of privacy, right of publicity, or other legal right; and it is otherwise not unlawful.
5.5 To the best of the Author’s knowledge, the Work does not infringe the copyright or other intellectual property or literary rights of another.
5.6 The Author will indemnify and hold Publisher harmless against loss, damages, expenses, awards, and judgments arising from breach of any such warranties.
Section 6: The Reuse of Third-Party Works
The Publisher requires that the Author determine, prior to publication, whether it is necessary to obtain permissions from any third party who holds rights with respect to any photographs, illustrations, drawings, text, or any other material (“third-party work”) to be published with or in connection with your Work. Copyright permission will not be necessary if the use is determined to be fair dealing, if the work is in the public domain, or if the rights-holder has granted a Creative Commons or other licence. If either the Author or Publisher determines for any reason that permission is required to include any thirdparty work, the Author will obtain written permission from the rightsholder.