<P> Statistics Canada prefers using the after - tax LICO over the pre-tax LICO "to draw conclusions about (families) overall economic well - being"; however, the pre-tax measures are needed depending on the study being conducted because some sources of data, such as the census, contain only pre-tax income information . It can also be useful to know the pre-tax income profile of groups before the effects of progressive tax rates . </P> <P> The Low Income Measure is a purer measure of relative income . It is defined as 50% of median income, adjusted for family size . In effect, this measure indicates the percentage or number of people in the bottom income quartile . </P> <P> It is considered an especially useful measure for international comparisons, and is popular with anti-poverty groups and some foreign governments (e.g., Ireland). It results in a higher measure of poverty compared to other measures . In 2011, it was estimated to be 12.6% on an after - tax basis . </P> <P> The Gini coefficient is a measure of statistical dispersion most prominently used as a measure of inequality of income distribution or inequality of wealth distribution . It is defined as a ratio with values between 0 and 1: the numerator is the area between the Lorenz curve of the distribution and the uniform distribution line; the denominator is the area under the uniform distribution line . Thus, a low Gini coefficient indicates more equal income or wealth distribution, while a high Gini coefficient indicates more unequal distribution . 0 corresponds to perfect equality (everyone having exactly the same income) and 1 corresponds to perfect inequality (where one person has all the income, while everyone else has zero income). The Gini coefficient requires that no one have a negative net income or wealth . </P>

What is the poverty line in canada in 2017