![]() ![]() So not only were LICOs being calculated against much higher average incomes, but families could spend a much smaller proportion of it on necessities and still be counted as poor. By 1978 those proportions had fallen to 38.5% and 58.5% respectively by 1992, to 34.7% and 54.7%. When those first LICOs were being calculated, it was estimated the average family spent half its income on the necessities, so the LICO standard was set at 70%. (Why 20 percentage points? Because.)īut as Canadians have grown richer over the years, they’ve tended to spend a smaller proportion of their incomes on the necessities. Then it extrapolates the level of income at which families would be spending that higher percentage on the same necessities. Then it adds 20 percentage points to that figure. Article contentįirst StatsCan calculates the proportion of its gross income the average family spends on the necessities: food, shelter and clothing. This advertisement has not loaded yet, but your article continues below. Manage Print Subscription / Tax Receipt. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |