Chapter 3: Income and Income Distribution

Income 

• One of the most important SDH

• Can affect diet, alcohol use, tobacco use etc.

• Equal distribution of income = healthier society 

Low Income

• Material + social deprivation 

• <deprivation = less food, clothes, housing = health bad 

• Higher rates for: suicide, infant mortality, heart disease, diabetes, respiratory disease 

• People earring middle class income = declining 

How to combat low income

• Adress the increasing disparity and make changes through government 

• Increase minumum wage 

• Boost social assistance levels for those that are unable to work 

• Progressive taxation = decrease inequities in income and wealth 

• Unionize work places = doesn’t allow company to make a profit that comes at the expense of their employees health and well being 

Social safety net

range of benefit programs and supports that protect citizens during various life changes that can affect their health 

Life changes

• Having a child 

• Education/employment training 

• Looking for housing. 

• Retirement 

• Entering labour force 

Unexpected life events (can contribute to poverty)

• Accidents 

• Family break ups 

• Unemployed 

• Physical/mental illness/disability 

• economic insecurity + physiological stress = affects health 

OECD (organization for economic cooperation and development) 

• Releases statistics = Canada spends less money on citizen’s benefits than other wealthy countries 

• Social safety net = bad compared to other wealthy countries

• Citizens have better health when they have good safety nets 

How to combat bad Social Safety Nets 

• The ones provided by the federal, territorial and municipal gov. Needs to be strengthened (more support and spending on citizens)

• Decision makers need to revaluate whether cutting out gov. Intervention is good for the health of citizens + if it will actually result in increasing economic activity 

• Strong political and social movements so that gov. will make public policy that will strengthen social safety network

Absolute poverty

Having less than an absolute minimum income level, based on the cost of
basic needs (deprivation of basic needs; things that threaten survival, eg, shelter,
food, etc); SURVIVAL

Relative poverty

Having less than the AVERAGE standard in a society; EXCLUSION

Social Gradient

Defined as the variation among individuals and groups due to income

Low Income Cutoff After Taxes (LICO-AT)

The level at which families or individuals spend 20% or more than
average, on food, shelter, and clothing
• Cutoffs are regularly updated to reflect changes

Low Income Measure (LIM)

Fixed percentage (50%) of median adjusted household income;
considered low income if a family’s income is below the LIM for
family type and size