Calgary study looks at how policy and benefits help Canadians in poverty

Person holds open wallet with several notes of Canadian cash. (Pexels)

A new Calgary study suggests that policy development and economic growth are the main drivers of poverty reduction in Canada.

The report, published by the University of Calgary’s School of Public Policy, looked at Statistics Canada data between 1976 and 2019.

It found within that time frame that the country’s poverty rate – a statistic that records the number of Canadians living below the poverty level – fell by 56 per cent.

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The school’s analysis of the data found employment growth, which generates higher incomes for individuals and governments, usually coincided with a higher employment rate.

During periods of recession, such as from 1981 to 1983, 1989 to 1993 and 2008 to 2009, saw employment rates fall.

The improvement and introduction of government benefit policies, such as increases in child benefits, helped more Canadians earn above the poverty line, researchers said.

“While these policies helped lower poverty in Canada, the correlation re-emphasizes that Canadian public policies that fail to promote employment opportunities may most impact individuals at the low end of the income distribution.”

Researchers say this work is important to understand how policies to support job creation and economic resilience should be crafted.