Low-Income Intensity During the 1990s: The Role of Economic Growth, Employment Earnings and Social Transfers

Garnett Picot, René Morissette and John Myles

Canadian Public Policy, 2003, vol. 29, issue s1, 15-40

Abstract: This paper assesses the role played by changes in economic growth, employment earnings, and government transfers in the patterns of low-income intensity in Canada during the 1980s and the 1990s. We find that lowincome intensity was higher in most provinces during the 1990s than during the 1980s (comparing comparable positions in the business cycle). During the 1990s changes in government transfers did not offset the fall in employment earnings among lower-income families, as they did during the 1980s, resulting in an increase in low-income intensity. Whether or not the relationship between economic growth and low-income intensity weakened in any kind of permanent way during the 1990s as compared to the 1980s is unclear from this analysis.

Date: 2003
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