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Publication date: 26 August 2015

Kathleen S. Short

This paper examines several measures of poverty and hardship for the United States to illustrate how a single measure of poverty may identify different groups of people as “in…

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This paper examines several measures of poverty and hardship for the United States to illustrate how a single measure of poverty may identify different groups of people as “in need.” Individuals and families may encounter difficulty meeting needs on many dimensions and there are a variety of measures designed to identify those who experience poverty or difficulty making ends meet. In general, there is agreement that all of the approaches capture different pieces of the puzzle while no single indicator can yield a complete picture. To understand this multidimensional aspect of poverty, several measures are examined in this paper: the official U.S. poverty measure, a relative poverty measure, a new supplemental measure that follows recommendations of the U.S. National Academy of Sciences (NAS), an index of material hardship, a measure of household debt, and responses to a question about inability to meet expenses. This study uses the 2008 panel of the Survey of Income and Program Participation (SIPP) and updates a similar analysis that used the 1996 panel of SIPP (Short, 2005). The SIPP is a longitudinal survey that allows us to examine all of these various indicators for the same people over the period from 2009 to 2010. The study uses regression analysis to assess the relationship among several indicators of economic hardship. Results suggest that an understanding of relationships between various indicators can allow only one indicator of poverty alone to be interpreted more appropriately and used more wisely to target the needs of the disadvantaged.

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Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

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Publication date: 15 December 2004

Thesia I. Garner and Kathleen S. Short

Responses to minimum income and minimum spending questions are used to produce economic well-being thresholds. Thresholds are estimated using a regression framework. Regression…

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Responses to minimum income and minimum spending questions are used to produce economic well-being thresholds. Thresholds are estimated using a regression framework. Regression coefficients are based on U.S. Survey of Income and Program Participation (SIPP) data and then applied to U.S. Consumer Expenditure Survey (CE) data. Three different resource measures are compared to the estimated thresholds. The first resource measure is total before-tax money income, and the other two are expenditure based. The first of these two refers to expenditure outlays and the second to outlays adjusted for the value of the service flow of owner-occupied housing (rental equivalence). The income comparison is based on SIPP data while the outlays comparisons are based on CE data. Results using official poverty thresholds are shown for comparison. This is among the earliest work in the U.S. in which expenditure outlays have been used for economic well-being determinations in combination with personal assessments, and the first time rental equivalence has been used in such an exercise. Comparisons of expenditures for various bundles of commodities are compared to the CE derived thresholds to provide insight concerning what might be considered minimum or basic.

Results reveal that CE and SIPP MIQ thresholds are higher than MSQ thresholds, and resulting poverty rates are also higher with the MIQ. CE-based MSQ thresholds are not statistically different from average expenditure outlays for food, apparel, and shelter and utilities for primary residences. When reported rental equivalences for primary residences that are owner occupied are substituted for out-of-pocket shelter expenditures, single elderly are less likely to be as badly off as they would be with a strict outlays approach in defining resources.

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Studies on Economic Well-Being: Essays in the Honor of John P. Formby
Type: Book
ISBN: 978-0-76231-136-1

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Publication date: 26 August 2015

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Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

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Book part
Publication date: 26 August 2015

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Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

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Publication date: 3 April 2003

Thesia I. Garner and Kathleen S. Short

Subjective minimum income (MIQ) and minimum spending (MSQ) are the study focus. Basic Needs Module (1995) data from the U.S. Survey of Income and Program Participation are…

Abstract

Subjective minimum income (MIQ) and minimum spending (MSQ) are the study focus. Basic Needs Module (1995) data from the U.S. Survey of Income and Program Participation are analyzed. A regression intersection approach is used to estimate household thresholds. MIQ thresholds are higher than MSQ thresholds. Both are higher than U.S. official poverty thresholds, and thresholds based on a National Academy of Sciences (NAS) methodology. Subjective threshold-based equivalence scales imply greater economies of scale than those in the other two measures but are similar to behavioral scales. This finding suggests that families make trade-offs to meet their minimum needs.

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Inequality, Welfare and Poverty: Theory and Measurement
Type: Book
ISBN: 978-0-76231-014-2

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Publication date: 26 August 2015

Taryn Ann Galloway, Björn Gustafsson, Peder J. Pedersen and Torun Österberg

Immigrant and native child poverty in Denmark, Norway, and Sweden 1993–2001 is studied using large sets of panel data. While native children face yearly poverty risks of less than…

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Immigrant and native child poverty in Denmark, Norway, and Sweden 1993–2001 is studied using large sets of panel data. While native children face yearly poverty risks of less than 10 percent in all three countries and for all years studied the increasing proportion of immigrant children with an origin in middle- and low-income countries have poverty risks that vary from 38 up to as much as 58 percent. At the end of the observation period, one third of the poor children in Norway and as high as about a half in Denmark and in Sweden are of immigrant origin. The strong overrepresentation of immigrant children from low- and middle-income countries when measured in yearly data is also found when applying a longer accounting period for poverty measurement. We find that child poverty rates are generally high shortly after arrival to the new country and typically decrease with years since immigration. Multivariate analysis shows that parents years since immigration and education affect risks of the number of periods in persistent poverty. While a native child is very unlikely to spend nine years in poverty, the corresponding risk for a child to a newly arrived immigrant was found to be far from negligible. Much of the pattern is similar across the three countries but there are also some notable differences.

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Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

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Book part
Publication date: 26 August 2015

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Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

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Book part
Publication date: 15 December 2004

Abstract

Details

Studies on Economic Well-Being: Essays in the Honor of John P. Formby
Type: Book
ISBN: 978-0-76231-136-1

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Book part
Publication date: 3 April 2003

Abstract

Details

Inequality, Welfare and Poverty: Theory and Measurement
Type: Book
ISBN: 978-0-76231-014-2

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Book part
Publication date: 26 August 2015

Abstract

Details

Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

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