Youths face income hurdle - not the elderly

Share

Kevin Milligan is Associate Professor of Economics at the University of British Columbia

Last week, a Globe and Mail headline informed readers that the number of elderly with low income had risen by 25 per cent from 2007 to 2008. Such a jump is surely worth investigating, but it also requires some context.

Thirty-five years ago, elderly poverty in Canada was a serious problem. One indicator of living in tough circumstances is having low income. The first chart in the attached infographic shows the proportion of families in Canada living with low income in 1973, by the age group of the oldest person in the family. More than 40 per cent of families in the oldest age group had low income, by far the highest of any age group.

However, as I have documented in a longer research paper, elderly poverty has decreased tremendously over the past 35 years.

If we look now at numbers from 2007 and 2008 (second attached infographic), a very different picture emerges. For the more recent years, we can look at how many individuals are living in low income families. (Note that the numbers in this chart are not directly comparable to those in the 1973 chart because of methodology differences, but in my research paper the same result comes through with more consistent measures.)

Three things stand out. First, there has indeed been a slight uptick in low-income among older Canadians -- but it is from a small base. Second, the proportion of those in the 65+ age group in low-income is much smaller than in the 1970s. Third, it is younger Canadians who face the largest income challenges.

There is always much debate about how to measure deprivation, and how much the government can and should do in response. For those who do advocate action, their energy might best be devoted toward those groups in strongest need. The data suggest that it is younger -- not older -- Canadians who face the toughest struggle with low income in our society today.

Follow Economy Lab on twitter