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Economic Performance of Off-Reserve Aboriginal Canadians A Study of Groups at Risk of Social Exclusion - January 2002

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9. Explaining the stronger economic performance of certain Aboriginal people within the Off-reserve Aboriginal group

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In the previous sections, the researchers observed that off-reserve Aboriginal people generally ended up better off from an economic point of view than the members of other high risk groups. Moreover, it was demonstrated that the fact that they integrated better and with more stability into the labour market constituted the only obvious explanation of their stronger overall economic performance compared with other high risk groups. However, within the Off-reserve Aboriginal group, person with certain characteristics are more likely to escape persistent poverty.

In most high risk groups, certain members can be identified who are more likely to experience long-term poverty. For instance, in the Recent immigrant group, studies have shown that visible minorities are more likely to experience financial difficulties. In the case of off-reserve Aboriginal people, those belonging to families whose principal income recipient is registered under Canada's Indian Act are most likely to face this kind of situation.

Figure 17 - Rate of Persistent Poverty Among Off-Reserve Aboriginal People Between 1993 and 1998, According to Whether Their Principal Income Recipient Was Registered in 1993

Figure 17 - Rate of Persistent Poverty Among Off-Reserve Aboriginal People Between 1993 and 1998, According to Whether Their Principal Income Recipient Was Registered in 1993

Among all off-reserve Aboriginal people, the risk of experiencing persistent poverty between 1993 and 1998 was 18.6% (see Figure 2). This rate suggested that their risk of persistent poverty, although high when compared with those non-high risk, was considerably lower than that for other high risk groups. Nonetheless, Figure 17 clearly indicated that when only the experience of persistent poverty among Off-reserve Aboriginal whose principal income recipient was registered under the Indian Act in 1993 is considered, this risk rises to 30.7%. This latter proportion does not suggest that this type of off-reserve Aboriginal person is economically better off than the other high risk groups since it is similar to the proportions associated with these groups. As indicated by Figure 2, the rate of persistent poverty varies between 27.6% and 34.5% in each of the four other high risk groups. Consequently, it would appear that the strong long-term economic performance of off-reserve Aboriginal people compared with the other high risk groups is largely due those who are not registered.

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