The impact on household level of living of an increase in household income in the Interlake area of Manitoba
Bollman, Ray D.
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Recent proposals to improve the level of living by income supplements necessitated a discussion of the impact of an income increase on the level of living. The components of the level of living were ascertained by a review of the literature. A qualitative discussion of the impact of income on both the consumption and non-consumption aspects was presented. Data from a survey of household income and expenditure for the Interlake Area in 1968 were used to develop an analysis of the consumption response to an income increase. The relation of household consumption expenditures by category to their respective components of the level of living was discussed. It was found that income provides a positive and direct impact on only a few components of the level of living, a positive but indirect impact on other components, a negligible impact for still other components, and in two cases an income increase provides a negative impact on the level of living. The public policies which propose to increase the level of living by an income transfer must recognize that not all components are equally affected nor are all components necessarily affected.