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Key Terms
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absolute poverty  A situation in which the basic material needs of an individual or a family (food, clothing, shelter) are not met.
(See page(s) p. 340)
Canada Pension Plan  (CPP) A national retirement plan funded by obligatory employer and employee contributions.
(See page(s) p. 342)
employment discrimination  Inferior treatment in hiring, promotion, and work assignment for a particular group of employees.
(See page(s) p. 345)
Employment Insurance  (EI) A program that insures workers against the hazards of losing their jobs.
(See page(s) p. 343)
equality–efficiency tradeoff  The decrease in economic efficiency that may accompany a decrease in income inequality; the presumption that some income inequality is required to achieve economic efficiency.
(See page(s) p. 340)
Gini ratio  A numerical measure of the overall dispersion of income.
(See page(s) p. 333)
Guaranteed Income Supplement  (GIS) Money paid on application, subject to a means test, to those receiving an OAS pension who have an income below a certain level.
(See page(s) p. 342)
human capital discrimination  Arbitrary restriction of particular groups from productivity-enhancing investments in education and training.
(See page(s) p. 345)
income inequality  The unequal distribution of an economy's total income among households or families.
(See page(s) p. 332)
income mobility  The movement of individuals and families from one income quintile to another over time.
(See page(s) p. 334)
Lorenz curve  A curve showing the distribution of income in an economy; the cumulated percentage of families (income receivers) is measured along the horizontal axis and cumulated percentage of income is measured along the vertical axis.
(See page(s) p. 332)
noncash transfer  Government transfer payments in the form of goods and services rather than money; for example, food stamps, housing assistance, and job training; also called in-kind transfers.
(See page(s) p. 334)
occupational discrimination  Arbitrary restriction of particular groups from more desirable, higher-paying occupations.
(See page(s) p. 345)
occupational segregation  Crowding women or minorities into less desirable, lower-paying occupations.
(See page(s) p. 346)
Old Age Security  (OAS) A pension paid on application at age 65 to everyone resident in Canada for at least 10 years immediately before turning 65.
(See page(s) p. 342)
relative poverty  A situation in which an individual's or a family's income is low relative to others in society.
(See page(s) p. 340)
statistical discrimination  Judging individuals on the average characteristic of the group to which they belong rather than on their own personal characteristics.
(See page(s) p. 345)
wage discrimination  The payment of a lower wage to members of a less-preferred group than to members of a more-preferred group for the same work.
(See page(s) p. 345)







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