Rent Imputation Reveals Dramatic Decline in Canadian Poverty Over 12 Years
Household consumption measures need to include rent from owned homes to accurately study consumption poverty and inequality. By correcting for quality differences between owned and rented homes, average household consumption estimates increase by 4%. A new method for measuring poverty considers the error from rent imputation by imputing a distribution of consumption levels for each household. Applying this method to Canada from 1997-2009 shows a significant decline in overall and child poverty, but not much change in poverty among the elderly.