Advanced Search
MyIDEAS: Login

The Evolution of Elderly Poverty in Canada

Contents:

Author Info

  • Kevin Milligan

Abstract

The drop in income poverty among the elderly in Canada over the last generation has been well-documented. In this paper, I extend the calculation of head-count measures of poverty to all currently available microdata, spanning the years 1973 to 2003. I then generate consumption poverty measures spanning 1969 to 2004 and compare to the income poverty results. For both income and consumption, I implement a relative poverty measure that uses the wellbeing of working age families as a benchmark for the elderly. I find that income poverty among the elderly decreases sharply through the 1970s and 1980s by all measures. Since the mid-1990s, relative measures of income poverty have increased substantially, reflecting increasing income among the working age and better- off elderly more than an absolute decrease among lower-income elderly. For consumption, a similar downward trend from the 1970s to the 1990s is evident, although the level of consumption poverty among the elderly is very sensitive to the treatment of housing flows and durables. Since the 1980s, a sharp spike in income poverty has emerged between the ages of 55 and 64. Interestingly, no similar spike is found in the consumption data, which may suggest that many families successfully smooth their consumption over a spell of low-income in this age range.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://socserv.mcmaster.ca/sedap/p/sedap170.pdf
Download Restriction: no

Bibliographic Info

Paper provided by McMaster University in its series Social and Economic Dimensions of an Aging Population Research Papers with number 170.

as in new window
Length: 46 pages
Date of creation: Jan 2007
Date of revision:
Handle: RePEc:mcm:sedapp:170

Contact details of provider:
Postal: 1280 Main Street West, Hamilton, Ontario, L8S 4M4
Phone: (905) 525-9140 ext. 22765
Fax: (905) 521-8232
Email:
Web page: http://www.mcmaster.ca/economics/
More information through EDIRC

Related research

Keywords: poverty; elderly;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Kevin Milligan, 2004. "Life-cycle Asset Accumulation and Allocation in Canada," Social and Economic Dimensions of an Aging Population Research Papers 122, McMaster University.
  2. Thomas Crossley & Lori Curtis, 2003. "Child Poverty in Canada," Department of Economics Working Papers 2003-06, McMaster University.
  3. Michael Baker & Jonathan Gruber & Kevin S. Milligan, 2009. "Retirement Income Security and Well-Being in Canada," NBER Working Papers 14667, National Bureau of Economic Research, Inc.
  4. Lars Osberg, 2001. "Poverty Among Senior Citizens: A Canadian Success Story," The State of Economics in Canada: Festschrift in Honour of David Slater, in: Patrick Grady & Andrew Sharpe (ed.), The State of Economics in Canada: Festschrift in Honour of David Slater, pages 151-181 Centre for the Study of Living Standards.
  5. Marc Frenette & David A. Green & Kevin Milligan, 2007. "The tale of the tails: Canadian income inequality in the 1980s and 1990s," Canadian Journal of Economics, Canadian Economics Association, vol. 40(3), pages 734-764, August.
  6. Krishna Pendakur, 2001. "Consumption Poverty in Canada, 1969 to 1998," Canadian Public Policy, University of Toronto Press, vol. 27(2), pages 125-149, June.
  7. Thomas F. Crossley & Krishna Pendakur, 2002. "Consumption Inequality," Department of Economics Working Papers 2002-09, McMaster University.
  8. Johnson, Paul & Stears, Gary, 1998. "Why Are Older Pensioners Poorer?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(3), pages 271-90, August.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Mike Brewer & Cormac O'Dea, 2012. "Measuring living standards with income and consumption: evidence from the UK," IFS Working Papers W12/12, Institute for Fiscal Studies.
  2. McDonald, James Ted & Worswick, Christopher, 2013. "Retirement Incomes, Labour Supply and Co-residency Decisions of Older Immigrants in Canada: 1991-2006," CLSSRN working papers clsrn_admin-2013-23, Vancouver School of Economics, revised 29 Apr 2013.
  3. Michael R. Veall, 2007. "Which Canadian Seniors Are Below the Low-Income Measure?," Quantitative Studies in Economics and Population Research Reports 414, McMaster University.
  4. Van Vliet, Olaf & Been, Jim & Caminada, Koen & Goudswaard, Kees, 2011. "Pension reform and income inequality among the elderly in 15 European countries," MPRA Paper 32940, University Library of Munich, Germany.
  5. Kevin S. Milligan, 2012. "How is Economic Hardship Avoided by Those Retiring Before the Social Security Entitlement Age?," NBER Working Papers 18051, National Bureau of Economic Research, Inc.
  6. Kees Goudswaard & Olaf van Vliet & Jim Been & Koen Caminada, 2012. "Pensions and Income Inequality in Old Age," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 10(4), pages 21-26, December.
  7. repec:ese:iserwp:2012-05 is not listed on IDEAS
  8. Anders, Sven, 2010. "Ageing And Consumption – The Impact Of Demographic Change On Food Expenditure Patterns," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116442, European Association of Agricultural Economists & Agricultural and Applied Economics Association.
  9. 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.
  10. Milligan, Kevin, 2013. "Employer-provided pensions, incomes, and hardship in early transitions to retirement," CLSSRN working papers clsrn_admin-2013-24, Vancouver School of Economics, revised 29 Apr 2013.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:mcm:sedapp:170. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.