Annual Income Estimates for Census Families and Individuals (T1 Family File)

Divergence index of economy, ratio

Divergence index (D-index) describes the degree that families with different income levels are mixing together in neighbourhoods. It compares neighbourhood (census tract, CT) discrete income distributions to a base distribution, which is the income quintiles of the neighbourhood's census metropolitan area (CMA). The underlying mathematical function maps income distribution differences to a value between 0 and 1. A value of zero indicates the income mix of the CT is the same as its corresponding CMA (maximum level of mixing), while a value of 1 indicates all families fall into one of the metropolitan-defined income quintiles (minimum level of mixing).

Economy refers to the entire set of resident institutional units. It is divided into sectors that consists of groups of resident institutional units. An institutional unit is resident in a country when it has a centre of economic interest in the economic territory of that country. It is said to have a centre of economic interest when there exists some location - dwelling, place of production or other premises - within the economic territory on, or from, which it engages, and intends to continue to engage, in economic activities and transactions on a significant scale either indefinitely or over a finite period of time.

The data for this variable are reported using the following measurements:

  • Decimal number
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