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.
[D] Click for larger version, 35 KB 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.
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