Defining and measuring poverty: implications for the health of Canadians

This paper examines the implications that the conceptualizationand measurement of poverty have for policies that aim to improvethe health of Canadians. In recent years, poverty has been identifiedas an issue of policy importance within the health sector inCanada. Policy makers are recognizing that efforts to improvethe health of Canadians are related to the development and implementationof policies that decrease the proportion of people who livein poverty. At the same time, the Statistics Canada Low-IncomeCut-Offs (LICOs), which are the most commonly used tool formeasuring poverty in Canada, are being called into question.One of the most frequently cited criticisms of the LICOs isthat they are too high, and as such do not measure poverty.Critics who argue that the LICOs are too high disagree withthe relative conceptualization of poverty which underlies theLICOs. In this paper, we discuss the LICOs, their underlyingassumption that poverty is relative in nature, and the criticismthat the LICOs are too high. In addition, we discuss the Sarlo/FraserInstitute poverty lines, which are based on the assumption thatpoverty is absolute in nature. The manner in which poverty isconceptualized and measured has implications for the types,characteristics and ultimately the success of policies thatare developed to reduce poverty and its effect on health. Weargue that the success of efforts to enhance the health of Canadianswith a reduction in poverty depends on a commitment by policymakers to a relative conceptualization and measurement of poverty.We further contend that policy makers in the health sector cannotindependently reduce poverty and its detrimental effects onhealth. The complex nature of poverty indicates the need forpolicy makers in the health sector to work collaboratively withtheir counterparts from a broad range of government and non-governmentsectors to develop an innovative network of social assistance,economic and employment policies that effectively reduce theproportion of Canadians who experience material and social deprivation.