Defining and measuring poverty: implications for the health of Canadians

Abstract

This paper examines the implications that the conceptualization and measurement of poverty have for policies that aim to improve the health of Canadians. In recent years, poverty has been identified as an issue of policy importance within the health sector in Canada. Policy makers are recognizing that efforts to improve the health of Canadians are related to the development and implementation of policies that decrease the proportion of people who live in poverty. At the same time, the Statistics Canada Low-Income Cut-Offs (LICOs), which are the most commonly used tool for measuring poverty in Canada, are being called into question. One of the most frequently cited criticisms of the LICOs is that they are too high, and as such do not measure poverty. Critics who argue that the LICOs are too high disagree with the relative conceptualization of poverty which underlies the LICOs. In this paper, we discuss the LICOs, their underlying assumption that poverty is relative in nature, and the criticism that the LICOs are too high. In addition, we discuss the Sarlo/Fraser Institute poverty lines, which are based on the assumption that poverty is absolute in nature. The manner in which poverty is conceptualized and measured has implications for the types, characteristics and ultimately the success of policies that are developed to reduce poverty and its effect on health. We argue that the success of efforts to enhance the health of Canadians with a reduction in poverty depends on a commitment by policy makers to a relative conceptualization and measurement of poverty. We further contend that policy makers in the health sector cannot independently reduce poverty and its detrimental effects on health. The complex nature of poverty indicates the need for policy makers in the health sector to work collaboratively with their counterparts from a broad range of government and non-government sectors to develop an innovative network of social assistance, economic and employment policies that effectively reduce the proportion of Canadians who experience material and social deprivation.