Income inequality and working poverty (custom tables), 2011

Table 1: Working Poverty

Working poverty is defined as individuals with an after-tax income below the Low Income Measure (LIM AT) and earning an annual individual working income of over $3,000.

Table 2: Income Inequality

The table is intended to allow the following analysis:

• A ratio of incomes at different percentile and decile thresholds (Deciles 1 through 10, 99^thpercentile top 1% e.g. top 10% to bottom 10%, etc…); and,
• A comparison of the value of the share of total after tax income received by the population above or below any given decile or percentile threshold (e.g. the top 1 percentile earned x% of all income, while the bottom 4 deciles earned y%).

Note that the deciles for this indicator are created using adjusted after-tax family income, in which a family's total income is divided by the square root of the family size and assigned to every member of the family, including children.  The deciles are calculated across the population of individuals, who are all assigned this adjusted family income.

Procedures to build the income inequality table:

1. Exclude persons in Yukon, Northwest Territories, Nunavut, non-residents and Indian Reserves and dead filers in the year of death
2. Calculate income decile groups for each individual within each geography as follows:
   1. Assign the adult equivalized Census Family after tax income to every person. This income, which is assigned to all family members, including children, is calculated by dividing family income by the square root of family size.  This is the same method for calculating the income deciles used in the NHS profiles and for calculating the Low income measure.
   2. Determine the decile thresholds for each geography across all individuals.
   3. Group individuals into decile groups using these thresholds and their census family income.

Please read the Methodology Notes associated with these tables. The section 'Additional Methodology Notes' outlines changes that have been made to the method used to produce these tables.