Geranda Notten, Full Professor of Comparative Public Policy at the University of Ottawa's Graduate School of Public and International Affairs, helped lead the report which introduces a Material Deprivation Index (MDI) – a poverty metric that's widely used in Europe to measure a poverty level standard of living – with Canadian data.
The MDI illuminates hidden poverty by showing that an estimated 25% of Canadians are living in poverty because they cannot afford two or more household essentials. That's nearly 6 million more Canadians than is reflected in StatsCan's most recent poverty rate data.
Professor Notten, from the Faculty of Social Sciences, provides an overview of the new report:
Question: Why is MDI the measure you chose for this report?
Geranda Notten: "MDI measures poverty by looking at a series of factual situations Canadians view as necessary to achieve an acceptable standard of living. Our index includes 11 such items, like whether someone can keep their home at a comfortable temperature all year round. In 2023, we found 1-in-4 Canadian adults could not afford two or more of such items."
Q: Why is MDI not used in Canada? Should it be?
GN: "Historically, poverty in Canada has been measured by looking at a family’s income. It’s an important determinant of a family’s standard of living, but families’ specific needs and circumstances matter. Unfortunately, measures of income poverty have trouble accounting for family specific situations.
Instead of measuring income – an input – MDI measures families’ material outcomes. An MDI asks whether people can afford a series of goods, services, and activities that most Canadians view as necessary for an acceptable standard of living. It is more accurate because it does not need to know whether a family member has a chronic illness, needs a special diet or is still paying down student loans."
Q: What are your key takeaways from this report? What findings should we be most alarmed about?
GN: "Poverty in Canada is more widespread than Canada’s official poverty indicator suggests because it underestimates the amount of money families need for their circumstances. For instance, due to a recent move one family’s apartment may cost hundreds more than that of their neighbours. The same holds true when a family member needs ongoing medication while they don’t have access to pharmacare."
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