Measuring Poverty with a Material Deprivation Index (MDI): An Updated Index for Canada
This Food Banks Canada report shows that assessing poverty goes beyond income. Utilizing Canadian data, the report introduces a Material Deprivation Index (MDI), a poverty metric that is widely used in Europe to measure a poverty level standard of living.
The MDI illuminates hidden poverty: it shows that an estimated 25 per cent of Canadians are living in poverty because they cannot afford two or more household essentials. This is nearly 6 million more Canadians than is reflected in Statistics Canada’s most recent poverty rate data.
The report shows that 30 per cent of Canadians aged 18 to 30 years old, 44.5 per cent of single-parent families, and 42 per cent of renters experience a poverty level standard of living, meaning they cannot afford two or more household essentials.
Food Banks Canada is asking the federal government to adopt an MDI in Canada, and to incorporate it into their official poverty reduction strategy. This could improve our understanding of the extent and nature of poverty, and help to explain gaps being seen between real life demand at food banks and Canada’s current official poverty rate.
Published by: Food Banks Canada
Publication Date: June, 2024
Click here to access Measuring Poverty with a Material Deprivation Index (MDI): An Updated Index for Canada
