Réseau canadien des Centres de données de recherche

In this study I examine the relationship between changes in the living arrangements of the elderly and changes in elderly income across the elderly income distribution. Using Canadian data from 1977-­-2008, the results of unconditional quantile regressions demonstrate a negative relationship between independent living and elderly income, with the strongest effects on middle income deciles in the late 1970s. Increases in the likelihood of independent living placed downward pressure on income over the 1970s-­-1990s. However, simultaneous reductions in the ‘penalty’ associated with independently living placed upward pressure on incomes, with the strongest effects on the middle income deciles. More recent increases in the independent living penalty are placing some downward pressure on incomes in the bottom half of the elderly income distribution .