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Income (1995$)

Montage composed of a line graph, dollar sign and pie chartIncome statistics are used by researchers and policy analysts to forecast the needs for government transfers, to understand the per capita consumption of goods and services and to aid in the development of government policies.

Canadian income statistics, based on specialized surveys such as the Family Expenditure Survey, the Survey of Labour and Income Dynamics or on the Census of Population, all capture, in varying degrees, an income distribution for the whole of Canada. The census is the most comprehensive, as the survey sample collects data for 20% of the population and the statistics provided are then adjusted to reflect 100% of the total population.

List of Income (1995$) Maps:

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Statistics Canada collected statistics for the population 15 years of age and over, reporting income in 1995 (not including institutional residents). Income sources included: wages and salaries, farm and non-farm self-employment, government transfer payments, investment income, retirement pensions and other money income. The chart below shows the relationship of these major income sources.

Diagram of the Components of Income, 1995[D]
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Figure 1. Components of Income, 1995

Note: All income terminology and concept definitions that have been referenced were defined by Statistics Canada. Refer to the 1996 Census Dictionary for more information.

Income and the Economy

In general, the Canadian economy has been steadily growing following the recession of the early 1990s. The average earnings of Canadians reported for 1998 were the highest in over a decade. Based on the Survey of Labour and Income Dynamics (1998), the average market income for all families recorded an increase in every province. While incomes for families and individuals have increased, the distribution of this wealth has not been equal. The top 20% of families with the highest incomes received 45.2% of the total market income while the lowest 20% saw a decrease in their share of market income, from 3.8% to 3.1% in the period of 1989 to 1998.

A large proportion of the low income group is comprised of lone-parent families. Of individuals aged 65 years and over, 18.7% had low incomes. For more information on low income refer to "Incidence of Low-income Cut-off, 1995". At the other end of the spectrum, two-parent families with children under 18 years of age saw an increase in 1998, up 4.7% from 1997, with an average of $55 074 in after-tax income.

Highlights of income statistics reflecting the past decade indicate that family incomes have remained relatively unchanged while household income declined slightly. Income inequalities had been stabilized to some extent through government transfer payments and increases in employment earnings. The contribution of government transfer payments to families increased from 5.4% in 1970 to 12.0% of income in 1995, allowing the lower income groups a greater share of the market income.

 
Date modified: 2006-09-12 Top of Page Important Notices