Poverty Line

Definition of Poverty Line

The Canada social science dictionary [1] provides the following meaning of Poverty Line: That division, arbitrarily arrived at and usually based on income, which divides the poor from the non-poor. There is considerable controversy about how this line should be determined and Statistics Canada uses the term low incomes rather than poverty and calculates low-income cutoffs. This line or cutoff can be determined in a variety of ways. One method is to determine the minimum income required to purchase a basket of goods and services thought to be necessary to maintain a minimum standard of living. Another alternative is to look at expenditures on the basic necessities of food, shelter and clothing. Poverty or a low income may be determined when a family spend 20% more of their income on these necessities than does the average family. This method has been used by Statistics Canada. A third method would be to assert that a family is in poverty if its income is less than 50% of the median family income, adjusted for family size. Changes to Statistics Canada policy in the late 1990’s reduced the extent of poverty considerably by redefining the concept.

Poverty Line: Resources

Notes and References

• Drislane, R., & Parkinson, G. (2016). (Concept of) Poverty Line. Online dictionary of the social sciences. Open University of Canada