Market Basket Measure
DEFINITION:
The Market Basket Measure (MBM) is based on the cost of a specific basket of goods and services representing a modest, basic standard of living. It includes the costs of food, clothing, shelter, transportation and other items for a reference family.
Graph data presents geography of British Columbia, population 30,000 to 99,999.
MEASUREMENT & LIMITATIONS:
The MBM is a measure of low income based on the cost of a specified basket of goods and services. The basket includes specific quantities and qualities for a nutritious diet, clothing and footwear, shelter, transportation, and other household needs, such as school supplies, personal care products, telephone, furniture, and modest levels of entertainment and recreation (Hatfield, Pyper, & Gustajtis, 2010).
Statistics Canada collects income data from the Survey of Labour and Income Dynamics (SLID) and data on the costs of goods and services in the specified basket to calculate low income thresholds in 48 geographical areas within the 10 provinces of Canada (HRSDC, 2009). Using this information, Statistics Canada estimates the basket costs for different geographical areas and family sizes.
As defined by the MBM, a low-income person is someone whose disposable income falls below the cost of the goods and services in the Market Basket in their community or community size. For instance, a family of two adults and one child living whose disposable income is $25,000 but whose basket cost is $28,000 would be defined as a low-income family. On the other hand, a single individual living whose disposable income is $20,000 but whose basket cost is $17,000 would not be defined as in low-income.
MBM disposable income excludes total income taxes paid, the personal portion of payroll taxes, other mandatory payroll deductions such as contributions to employer-sponsored pension plans, supplementary health plans and union dues, child support and alimony payments made to another family, out-of-pocket spending on child care, and non-insured but medically prescribed health-related expenses such as dental and vision care, prescription drugs and aids for persons with disabilities (HRSDC, 2009).
SOURCE:
Statistics Canada. Table 11-10-0066-01 Market Basket Measure (MBM) thresholds for the reference family by Market Basket Measure region, component and base year
Market Basket Measure in the Sustainable Development Goals
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1. End poverty in all its forms everywhere
Extreme poverty rates have been cut by more than half since 1990. While this is a remarkable achievement, one in five people in developing regions still live on less than $1.90 a day, and there are millions more who make little more than this daily amount, plus many people risk slipping back into poverty.
Poverty is more than the lack of income and resources to ensure a sustainable livelihood. Its manifestations include hunger and malnutrition, limited access to education and other basic services, social discrimination and exclusion as well as the lack of participation in decision-making. Economic growth must be inclusive to provide sustainable jobs and promote equality.