This technical paper describes the results of the review period, including small adjustments to the disposable income amounts used in the discussion paper Construction of a Northern Market Basket Measure (MBM-N) of poverty for Yukon and the Northwest Territories. It also marks the end of the review period for the MBM-N for Yukon and the Northwest Territories by presenting the latest poverty estimates for reference year 2020.
This discussion paper describes the proposed methodology for a Northern Market Basket Measure (MBM-N) for Yukon and the Northwest Territories, as well as identifies research which could be conducted in preparation for the 2023 review. The paper presents initial MBM-N thresholds and provides preliminary poverty estimates for reference years 2018 and 2019. A review period will follow the release of this paper, during which time Statistics Canada and Employment and Social Development Canada will welcome feedback from interested parties and work with experts, stakeholders, indigenous organizations, federal, provincial and territorial officials to validate the results.
"As stated in the Poverty Reduction Act, the Market Basket Measure (MBM) is now Canada's Official Poverty Line. This discussion paper describes the proposed methodology for a new Northern Market Basket Measure (MBM-N) for Nunavut which builds on the existing MBM-N methodology for Yukon and the Northwest Territories. The methodology proposed in this discussion paper is for the construction of a 2018-base MBM-N for Nunavut. However, there will be a comprehensive review of the MBM and the MBM-N methodologies, which is expected to occur in 2023. The paper also presents initial MBM-N Nunavut thresholds and provides preliminary poverty rate estimates for the 2018 to the 2021 reference years. In addition, it presents the thresholds for 2022 reference year. A review period will follow the release of this paper, during which Statistics Canada and Employment and Social Development Canada (ESDC) will welcome feedback from interested parties and work with experts, stakeholders, Inuit Organizations, and federal, provincial, and territorial officials to validate the results"--Page 3.
This paper develops a preliminary market-based measure of povery in response to the need for a measure of poverty that would be easy to understand, sensitive to geographic cost differences, related to changes in costs of consumption rather than changes in income, useful for measuring the impact on poverty of the National Child Benefit, and credible with respect to the severity of poverty. The main characteristics of the measure are: costs for food, clothing, and shelter are identified individually; costs for other expenditures are aggregated; geographic differences in the costs of goods and services are reflected; costs reflect family size; and costs are compared to family income available for consumption. Steps involved in constructing the measure are described and the differences in poverty incidence and depth, by province, are examined when calculated by the market-based measure and by other commonly used measures. Finally, further steps for development of the market-based poverty measure are outlined. The appendix includes a sensitivity analysis and an overview of current measures of poverty in Canada and internationally.
As governments struggle to adapt half-century-old income and social support programs to new needs and realities, some are calling for the introduction of a basic income guarantee for working-age Canadians. But is a basic income really the best policy response to poverty, precarious work, and unemployment? Is it the best way to build a just and inclusive society? Basic Income and a Just Society provides a comprehensive evaluation of basic income and its application as a primary social policy tool. Drawing on extensive research and analysis produced for the British Columbia Expert Panel on Basic Income, combined with pan-Canadian data and current evidence, leading scholars examine the various claims made for and against a basic income. They assess its potential to reduce poverty and improve social outcomes, as well as the costs associated with implementing such a program in Canada and how it would interact with existing social programs. In examining the key arguments advanced by proponents of a basic income, contributors take a hard look at Canada’s social safety net and its strengths and weaknesses, proposing a different path forward – one that entails a full paradigm shift in social policy and rests on providing the bases of self- and social respect to all Canadians.
"The Market Basket Measure (MBM) establishes poverty thresholds based on the cost of a basket of food, clothing, shelter, transportation and other necessities for a family of four that reflects a modest, basic standard of living. A family with a disposable income below the appropriate MBM threshold for the size of the family and their region of residence is considered to be living in poverty. This technical paper describes how the cost for "other necessities" is estimated in the 2018-base MBM. It provides a brief overview of the theory and application of techniques for estimating costs of "other necessities" in poverty lines and deconstructs the 2018-base MBM other necessities component to provide insights on how it is constructed. The aim of this paper is to provide a more detailed understanding of how the other necessities component of the MBM is estimated"--Page 4.
