How is Poverty or Low Income Defined?
There are three common methods: the Low Income Measure (LIM), the Low Income Cut-off (LICO) and the Market Basket Measure (MBM), as shown below.
For the purpose of making international comparisons, the Low Income Measure is the most commonly used tool. The LIMs is defined as 50% of the median household income and is seen as a minimum level for low income people to meet their basic living conditions and to participate in community life. |
The Low Income Cut-off method defines a lower threshold than LIM and is the income below which a family is likely to spend 20% more of its income on food, shelter and clothing than the average family and, since the cost of living varies with proximity to a city, also considers the community size in which the family is living.
Poverty in the Durham Region using the Low Income Cut-Off (LICO)
Source: Statistics Canada - 2005
As can be seen in the images attached, 9% of the population of Durham is living below the LICO and Oshawa has the highest percent of all the cities at 13%. Note, however, in the lower image, which breaks this information down by census tracts, that pockets of southern Oshawa reach 25% in some areas. Note that the highest rates of low income were experienced by:
- Women over the age of 65 (36%)
- Working age women (32%)
- Recent immigrants (25%)
- Lone parents with children under the age of 18 (34%)
Market Basket Measure
The Market Basket Measure approach costs out a basket of necessary goods and services including food, shelter, clothing and transportation, and uses a multiplier to cover other essentials. It also considers the community size in which the family is living. Due to its local cost of goods approach, it can provide a more accurate local estimate than the low income cut-off (LICO). No data is currently available for the Durham Region.