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Consumption Poverty in Canada, 1969 to 1998

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  • Krishna Pendakur

Abstract

In this paper, I estimate the poverty rate as the proportion of individuals who have consumption - rather than income - lower than an absolute poverty line. The absolute poverty line used is based on the expenditure necessary to achieve a minimum level of material well-being. It does not change over time with changing social values as do relative poverty lines. Consumption is used because consumption levels are chosen by households with some knowledge of future and past incomes, and may thus be a better indicator of material well-being than income. Here, consumption is adjusted for differences in the prices faced by, and demographic characteristics of, different households.The story told by consumption poverty measures is mixed. As with income poverty measures, the consumption poverty rate declined over the 1970s and 1980s - all boats rose in the rising tide. However, the 1990s tell a different story. The consumption poverty rate increased by more than half between 1992 and 1998. Outcomes for children were even worse. The rate of consumption poverty among children more than doubled between 1992 and 1998.

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  • Krishna Pendakur, 2001. "Consumption Poverty in Canada, 1969 to 1998," Canadian Public Policy, University of Toronto Press, vol. 27(2), pages 125-149, June.
    • Handle: RePEc:cpp:issued:v:27:y:2001:i:2:p:125-149
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    References listed on IDEAS

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    Cited by:

    1. Matthew Brzozowski & Thomas F. Crossley, 2011. "Viewpoint: Measuring the well‐being of the poor with income or consumption: a Canadian perspective," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(1), pages 88-106, February.
    2. Sam Norris & Krishna Pendakur, 2013. "Imputing rent in consumption measures, with an application to consumption poverty in Canada, 1997–2009," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(4), pages 1537-1570, November.
    3. Yanfeng Chen & Qingjie Xia & Xiaolin Wang, 2021. "Consumption and Income Poverty in Rural China: 1995–2018," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(4), pages 63-88, July.
    4. Chen, Feifei & Qiu, Huanguang & Zhang, Jun, 2022. "Energy consumption and income of the poor in rural China: Inference for poverty measures," Energy Policy, Elsevier, vol. 163(C).
    5. Chris Sarlo, 2007. "Measuring Poverty – What Happened To Copenhagen?," Economic Affairs, Wiley Blackwell, vol. 27(3), pages 6-14, September.
    6. Bev Dahlby & Kevin Milligan, 2017. "From theory to practice: Canadian economists’ contributions to public finance," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1324-1347, December.
    7. Michael D. Hurd & Susann Rohwedder, 2006. "Economic Well-Being at Older Ages: Income- and Consumption-Based Poverty Measures in the HRS," NBER Working Papers 12680, National Bureau of Economic Research, Inc.
    8. Bruce D. Meyer & James X. Sullivan, 2011. "Viewpoint: Further results on measuring the well‐being of the poor using income and consumption," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(1), pages 52-87, February.
    9. Kevin Milligan, 2008. "The Evolution of Elderly Poverty in Canada," Canadian Public Policy, University of Toronto Press, vol. 34(s1), pages 79-94, November.
    10. Andrejs Skaburskis, 2004. "Decomposing Canada's Growing Housing Affordability Problem: Do City Differences Matter?," Urban Studies, Urban Studies Journal Limited, vol. 41(1), pages 117-149, January.
    11. Shahateet, Mohammed, 2006. "How Serious is Regional Economic Inequality in Jordan? Evidence from Two National Household Surveys," MPRA Paper 57118, University Library of Munich, Germany.
    12. Michael R. Veall, 2008. "Canadian Seniors and the Low Income Measure," Canadian Public Policy, University of Toronto Press, vol. 34(s1), pages 47-58, November.
    13. Don J. DeVoretz & Florin P. Vadean, 2008. "Cultural Differences in the Remittance Behaviour of Households: Evidence from Canadian Micro Data," Studies in Economics 0814, School of Economics, University of Kent.
    14. Thomas F. Crossley & Krishna Pendakur, 2002. "Consumption Inequality," Department of Economics Working Papers 2002-09, McMaster University.
    15. Michael D. Hurd & Susann Rohwedder, 2006. "Economic Well-Being at Older Ages: Income- and Consumption-Based Poverty Measures in the HRS," NBER Working Papers 12680, National Bureau of Economic Research, Inc.
    16. Shahateet, Mohammed & Al-Tayyeb, Saud, 2007. "Regional consumption inequalities in Jordan: Empirical study," MPRA Paper 57400, University Library of Munich, Germany.

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