This is a semi-custom version of table 11-10-0024-01, providing data at additional levels of geography.
- The low income entry rate is the proportion of tax filers who entered low income in the second year among filers who were not in low income the first year.
- The low income exit rate is the proportion of tax filers who exited low income in the second year among filers who were in low income the first year.
- The low income immobility rate is the proportion of tax filers who continued to stay in low income in the second year among filers who were in low income the first year.
- The low income resistance rate is the proportion of tax filers who continued to stay out of low income in the second year among filers who were not in low income the first year.
The Longitudinal Administrative Databank (LAD) is a longitudinal file designed as a research tool on income and demographics. It comprises a 20% sample of the annual T1 Family File.
This table is based on tax filers who were at least 18 years old and filed income tax returns in both years of the transition period. Filers must have stayed in the same region during the transition period.
Two types of low income measure (LIM) thresholds are used in this table. The variable LIM threshold is re-estimated each year while the fixed LIM threshold is based on median income in 2002 and is adjusted by the all-items Consumer Price Index to account for inflation in other years. For a discussion of the fixed LIM threshold, see Xuelin Zhang (2010): “Low Income Measurement in Canada: What Do Different Lines and Indexes Tell Us?”. Income Research Paper Series, Catalogue no. 75F0002M -- No. 003, Statistics Canada, Ottawa, Ontario.
The tables ordered were produced using data from the Longitudinal Administrative Databank (LAD). This data source is mainly based on a 20% sample of the T1 Family File (T1FF). In order to maximize the efficiency of the longitudinal aspect of the LAD data, some additional geography processing steps are applied to LAD data. This difference in the geography processing, in addition to differences based on the fact that LAD is a 20% sample of T1FF, can lead to differences in geographical coverage between these two data sources, especially for lower levels of geography such as census subdivisions (CSDs). Hence, a user should expect, on occasion, some notable differences in CSD tax filer counts when comparing data from these sources.
The low income measure (LIM) is used to identify low income tax filers. The LIM threshold is calculated as half of the median of the adjusted income of all tax filers and their family members. The adjustment is made by dividing the after-tax income by the square root of the census family size. Census family is the only family unit available in the Longitudinal Administrative Databank. Details of the calculation can be found in Murphy, Brian, X. Zhang and C. Dionne. (2010) “Revising Statistics Canada’s Low Income Measure (LIM)”, Income Research Paper Series, Catalogue No. 75F0002M – No. 004, Statistics Canada, Ottawa, Ontario.