Disability Considerations for Measuring Poverty in Canada Using the Market Basket Measure

Abstract

Persons with disability (PWD) in Canada experience disproportionately high poverty rates. Poverty measures are often used to benchmark income assistance levels and social policies across Canada. The Market Basket Measure (MBM) is the official poverty measure in Canada that accounts for differences in family composition and geography. It does not, however, account for cost-incurring factors like disabilities, despite the evidence of differences in daily living costs. PWD experiencing poverty have additional needs to reduce barriers to full participation in society that can translate to higher basic costs for daily living. Given that poverty measures like the MBM may assess eligibility for income support or eligibility for public housing, these measures need to reflect how the cost of living differs for PWD. To critically analyze disability-specific considerations for the Canadian poverty line, we assess the MBM within the context of persons with disabilities. To identify differences in consumption patterns and family composition for PWD, a population based cross-sectional analysis was conducted using data from the 2017 Canadian Survey on Disability. Analysis assessed for bias within the MBM based on the basket contents, family composition and disability severity. PWD experience two times higher poverty rates, worse housing outcomes and incur higher and additional expenses for basic needs of daily living than persons without disability. The MBM underestimates the true poverty rate for persons with disabilities as it does not account for all their additional costs and does not represent their average family composition.