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This commentary reports the results of the first general empirical study of low-income dynamics in Canada, based on the Longitudinal Administrative Database and covering 1992 to 1996. The analyses focus on the following: the data source & terminology used; initial cross-sectional poverty rate benchmarks; annual rates of entry into and exit from poverty by sex, age, and family type; empirical hazard rates & associated survival rates associated with exiting & re-entering poverty; the total time spent in low income; the income changes that occur when individuals enter or exit poverty; specific factors associated with movements into & out of poverty; how rates of entry, exit, and re-entry change over the course of a given spell of poverty or after exit from a previous spell; and the effects of past spells of poverty on the probability of being poor or entering low income in a later year. The final section addresses some related policy issues, such as how various sorts of initiatives might be targeted on different types or groups of individuals depending on the dynamic nature of their poverty experiences.
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