Incomes from Owner-Occupied Housing for Working-Age and Retirement-Age Canadians, 1969 to 2006

Statistics Canada Economic Analysis Research Paper No. 66

30 Pages Posted: 24 Jan 2011

Date Written: December 9, 2010

Abstract

Using data from the Survey of Household Spending and from its predecessor, the Survey of Family Expenditures, this paper investigates the relative incomes of retirement-age and working-age Canadians from 1969 to 2006, taking into account both explicit household income and the implicit income generated by owner-occupied housing. Over this 37-year period, the explicit incomes of retirement-age households increased at a more rapid pace than those of working-age households. Implicit income from owner-occupied housing also increased rapidly during this time, matching the rate at which the explicit income of retirement-age households increased. On average, this implicit source of earnings raised the incomes of retirement-age households (aged 70 and over) by 16%. Taking both forms of income into account, the incomes of retirement-age households (aged 70 and over), relative to the incomes of working-age households (aged 40 to 49), increased from 45% in 1969 to 59% in 2006. During this period, Canadians invested in housing assets that provided additional income upon retirement.

Keywords: Equity, Income, Retirement, Seniors

JEL Classification: D31, J26

Suggested Citation

Brown, Williams Mark and Lafrance, Amélie, Incomes from Owner-Occupied Housing for Working-Age and Retirement-Age Canadians, 1969 to 2006 (December 9, 2010). Statistics Canada Economic Analysis Research Paper No. 66, Available at SSRN: https://ssrn.com/abstract=1746918 or http://dx.doi.org/10.2139/ssrn.1746918

Williams Mark Brown (Contact Author)

Statistics Canada ( email )

Ottawa, Ontario
Canada

Amélie Lafrance

Statistics Canada ( email )

Ottawa, Ontario
Canada
613-951-0060 (Phone)

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