Dictionary, Census of Population, 2021
Non-discretionary spending for the MBM

Definition

Non‑discretionary spending for the Market Basket Measure (MBM) consists of the following:

• personal portion of payroll taxes, such as employment insurance premiums and Canada Pension Plan or Québec Pension Plan contributions;
• 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.

Non‑discretionary spending for the MBM at the economic family level is the sum of non‑discretionary spending for the MBM of all economic family members.

For the 2021 Census, the reference period is the calendar year 2020 for this variable.

Statistical unit(s)

• Economic family
• Person

Classification(s)

• Not applicable

Reported in

2021, 2016 (25% sample), 2011^{Footnote 1} (30% sample)

Reported for

Economic families and persons not in economic families aged 15 years and over in private households

Question number(s)

Variable derived based on administrative tax and benefit records received from the Canada Revenue Agency.

Responses

Positive dollar value or nil

Remarks

The conceptual contents of this variable were defined by Employment and Social Development Canada (ESDC) for the purposes of computing the disposable income for the MBM.

Two components were derived from responses to spending questions on the long‑form census questionnaire. See child care expenses paid and child or spousal support payments.

The other items were either based on tax file deductions for respondents who filed a tax return for 2020 or were imputed for remaining respondents.

The MBM methodology undergoes periodic reviews and updates. During the second comprehensive review of the Market Basket Measure (2018‑2020), there was an update in methodology to the derivation of medical expenses. For more information, see 'Defining disposable income in the Market Basket Measure' in the Income Research Paper Series (Catalogue no. 75F0002M).

See also Market Basket Measure (MBM).

For additional information about data collection method, coverage, reference period, concepts, data quality and intercensal comparability of the income data, refer to the Income Reference Guide, Census of Population, 2021.

Note(s)