The Supplemental Poverty Measure Kathleen S. Short Session: S - - PowerPoint PPT Presentation
The Supplemental Poverty Measure Kathleen S. Short Session: S upplemental Poverty Measure and Differential Metrics to Strengthen the Effectiveness of TANF Programs Tuesday, September 13, 2011 The 51 st Annual Workshop of the National Association
Kathleen S. Short
Session: Supplemental Poverty Measure and Differential Metrics to Strengthen the Effectiveness of TANF Programs Tuesday, September 13, 2011 The 51st Annual Workshop of the National Association for Welfare Research and Statistics Vail, Colorado
The views expressed in this research, including those related to statistical, methodological, technical, or operational issues, are solely those of the authors and do not necessarily reflect the official positions or policies of the Census
This paper is released to inform interested parties of ongoing research and to encourage discussion of work in progress. This paper reports the results of research and analysis undertaken by Census Bureau staff. It has undergone more limited review than official publications.
2
3
– First adopted in 1965 – Now under Office of Management and Budget (OMB) Statistical Policy Directive No. 14. – Poverty thresholds updated each year by change in Consumer Price Index (CPI) – Compares before-tax money income to thresholds – Uses Current Population Survey (CPS ASEC)
– Provision of near-money benefits – Necessary expenses (taxes, health care, work) – Higher standards and levels of living since 1965 – Geographic price differences among regions
4
March 2, 2010
the measure
recommendations
two adult/two child family in 1963 times three to cover all other expenses
5 years on food, clothing, and shelter (including utilities and all mortgage expenses) (FCSU) from the Consumer Expenditure Surveys
– 33rd percentile – all family units with exactly 2 children (adjusted, when needed, to be equivalent to 2 adult/2 child family unit) – plus 20 percent to cover all other expenses.
5
6
7
8
9
income from all sources
Gross money income:
kind benefits for FCSU (e.g., SNAP, housing subsidies) and tax credits (EITC).
– child care, work-related expenses; – child support payments; –
expenses, including health insurance premiums)
10
Payroll and state and federal income taxes
incorporate new CPS ASEC questions Child care and other work related expenses
questions on child care expenses paid
Medical Out of Pocket Expenditures (MOOP)
questions
the uninsured Child Support Paid
questions to subtract child support paid from income
11
12
without a mortgage and renters
than two adult/two child families at 33rd percentile of FCSU
– Child support paid – Child care paid – Medical out of pocket expenditures
metropolitan areas
Additions and Subtractions: All SPM Family Groups
200.0 0.0
$
lion
Bil
School SNAP lunch Series1 33.1 9.2 Taxes Housing WIC before subsidy/c LIHEAP credits ap 1.9 19.4 1.6
EITC 33.7 Work FICA expense Childcar s e
Child MOOP support paid
18 Additions and Subtractions: Poor*
30.0 20.0
$
10.0
Billion
0.0
School Housing SNAP WIC lunch subsidy/c ap Series1 22.3 3.6 1.0 14.9 Taxes Work before EITC FICA expense LIHEAP credits s 0.8
13.1
Childcare
Child MOOP support paid
15
0.0 5.0 10.0 15.0 20.0 25.0
Poverty rates: OECD Social Indicators
17
18 14.5 21.2 13.0 8.9 15.7 17.9 14.9 15.3 19.5 25.9 16.9 19.6 0.0 5.0 10.0 15.0 20.0 25.0 30.0
All People Children Nonelderly Adults Elderly Percent Poor
Poverty Rates Using Three Measures Total and by Age Group: 2009
Official* Research SPM Relative Poverty
19
EITC SNAP Hsg subsidy School lunch WIC LIHEAP Child support FICA Work expens e MOOP Series1
0.0 0.2 1.5 1.8 3.4
0.0 0.2 1.5 1.8 3.4
0.0 1.0 2.0 3.0 4.0
Percentage point difference
Difference in Percent Below SPM Threshold After Including Each Element
20
EITC SNAP Hsg subsidy School lunch WIC LIHEAP Child support FICA Work expens e MOOP Children
0.0 0.2 2.0 2.4 3.0 Elderly
0.0
0.0 0.3 0.3 6.9
0.0 2.0 4.0 6.0 8.0 Percentage point difference
Difference in Percent Below SPM Threshold After Including Each Element: CHILDREN AND ELDERLY
21 24.7 36.1 28.1 32.8 62.6 56.1 59.5 54.4 12.7 7.8 12.4 12.8
0% 20% 40% 60% 80% 100% Total Population Official* Research SPM Relative Poverty
Composition of Total and Poverty Population by Age
Children Nonelderly Adults Elderly
22 6.4 5.2 6.8 8.1 10.5 12.6 18.7 31.5 30.5 30.7 35.2 36.0 36.2 17.7 14.0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Official* SPM Relative
Distribution of People by Income/Resources to Poverty Thresholds Ratio
4 or more 2.0 to 3.99 1.0 to 1.99 0.5 to 0.99
23
9.8 5.1 10.4 11.4 12.8 15.5 21.4 38.1 32.8 30.3 32.5 31.6 27.2 11.6 9.6 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Official* SPM Relative
Distribution of Children by Income/Resources to Poverty Thresholds Ratio
4 or more 2.0 to 3.99 1.0 to 1.99 0.5 to 0.99 less than 0.5
24 2.6 5.2 4.0 6.3 10.2 15.7 24.8 31.9 37.4 35.1 33.7 31.3 31.2 19.1 11.6
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Official* SPM Relative
Distribution of Elderly by Income/Resources to Poverty Thresholds Ratio
4 or more 2.0 to 3.99 1.0 to 1.99 0.5 to 0.99 less than 0.5
25 $13,651 $11,161 $10,289 $10,934 $14,450
$- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 Social Security Official threshold
Official threshold
SPM threshold one adult Relative threshold adult equivalent
Mean amounts for one adult
26