Low‐Income Dynamics in Canadian Communities: A Place‐Based Approach

ABSTRACT Canadian poverty rates have persisted at disappointingly high levels despite almost 15 years of continuous economic growth. The problem is exacerbated by some communities and neighborhoods having exceedingly high poverty, including very high rates for vulnerable demographic groups, such as aboriginals and recent immigrants. We investigate low‐income rates (poverty rates) for 2,400 Canadian “communities” over the 1981–2001 period. By focusing on communities, we fill a void in the related Canadian literature, which tends to focus on individuals, case studies, or more aggregate measures, such as provinces. Our approach allows us to assess the role of place‐based policies. Particular attention is given to communities with differing shares of aboriginal Canadians and recent immigrants. One novel feature is our analysis of both “short‐term” and “long‐term” causes of differential community poverty rates. The results suggest that community low‐income rates are more affected by initial economic conditions in the short term, with certain demographic factors becoming relatively more important in the long run.