Profiles and Transitions of Groups at Risk of Social Exclusion: Lone Parents - November 2002

3. Methodology

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3.1 Labour and Income Dynamics

The analysis relies on the Survey of Labour and Income Dynamics (SLID). The survey has been conducted annually since 1993 and the most recent year for which data are available is 2001.

A panel of 15,000 households is introduced every three years. Each panel stays in the sample for six years. All persons in households selected when a panel is introduced remain in the sample, even if there are changes in household composition or residence. Those persons living with an original respondent are also surveyed.

Every person is contacted for a preliminary interview when a panel is introduced. After this, every person is be contacted twice each year: (a) in January for labour data (detailed information on up to six jobs held in the previous year; information on unemployment spells; receipt of EI, social assistance and workers compensation on a monthly basis; family structure; education; disabilities; etc.); and (b) in May for income data (detailed information on sources of income; in about 75% of the cases the income information is obtained from tax records, following consent of the respondent).

For the longitudinal part of the analysis, we use in this study the 15,000 households from the first panel (1993-98). For the cross-sectional part of the analysis, the study uses 1998 data from the first two overlapping panels (a total of 30,000 households). Cross-sectional analysis prior to 1996 is limited to 15,000 households since there was only one panel available during the first three years.

3.2 Sample Selection

The unit of analysis is the main income recipient of the economic family:

• An economic family is defined as a group of individuals sharing a common dwelling unit who are related by blood, marriage or adoption. A person living alone or rooming in a household where he/she is not related to any other household members is called an unattached individual and is treated as an economic family unit by him/herself.
• The main income recipient is the member of the economic family with the highest total income in the year. The possible codes for this variable are:
  • the individual is the main income recipient of the economic family; or
  • the individual is not the main income recipient, but relates to the main income recipient by being one of the following:
    • spouse or common-law partner;
    • child (birth, step, adoptive, foster);
    • parent (birth, step, adoptive, foster); or
    • sibling, grandparent, grandchild, other relative.

The sample was further restricted to main income recipients who were age 16 to 55. In the case of the cross-sectional analysis the age refers to 1998; in the case of longitudinal analysis the age refers to 1993 or the start of a low income or social assistance spell (depending on the type of analysis). SLID provides complete information on the 16 plus population. The reasons for restricting the sample to those age 55 and under is that virtually no lone parent with young children is older than 55. Thus, restricting the upper end of the age range makes comparisons of lone parents to other types of family more meaningful.

3.3 Definition of Lone Parents

Lone parents are defined based on the following three criteria:

1. do not have a partner (either marital or common law);
2. live with at least one child of their own under the age of 18; and
3. are the main income recipient of the economic family.

The above definition is fairly commonly used in the literature and it is the most functional in the context of SLID. However, it should be pointed out that this definition leaves out a small number of lone mothers (less than 10%) who head a secondary census family (e.g. lone mothers who live with their parents and the main income recipient is one of the parents).

3.4 Definition of Low Income

The base year for the LICO used in SLID is 1992, with the levels adjusted for later years by the Consumer Price Index (CPI). The after tax LICOs, although not endorsed by Statistics Canada as low income lines, are commonly used to identify the low income population.

The after tax LICOs vary by the size of the economic family and the size of the community. In 1998, for example, in areas with population 100,000 to 499,999 the after tax LICOs were as follows:

• 1 person: $14,510
• 2 persons: $17,705
• 3 persons: $22,392
• 4 persons: $27,890
• 5 persons: $31,172
• 6 persons: $34,454
• 7+ persons: $37,735