Poverty Source: Current Populaon Survey Annual Social and Economic Supplements, 1960-2013. 2010 2000 1990 1980 1970 1960 2010 2000 1990 1980 1970 1960 15.1 11.3 13.5 13.0 12.6 22.2 PERCENT #MeasuringAmerica www.census.gov MEASURING AMERICA The Census Bureau issues the first report on experimental poverty measures responding to the NAS report. Kathleen Short, Thesia Garner, David Johnson, and Patricia Doyle, Experimental Poverty Measures: 1990 to 1997, U.S. Census Bureau, Current Populaon Reports, P60-205, Washington, D.C., U.S. Government Prinng Office, June 1999. The Census Bureau issues its first paper on the valuaon of noncash benefits and poverty measures. U.S. Bureau of the Census, Technical Paper 50, Alternave Methods for Valuing Selected In-Kind Transfer Benefits and Measuring Their Effect on Poverty (by Timothy M. Smeeding), Washington, D.C., U.S. Government Prinng Office, March 1982. Poverty: The History of a Measure President Johnson’s January 1964 declaration of his “War on Poverty” generated a new interest in measuring just how many people were in poverty and how those numbers changed from year to year. The next year the Office of Economic Opportunity adopted a working definition of poverty based on a methodology for counting the poor that had been proposed by Mollie Orshansky, an analyst at the Social Security Administration. In 1967, the Census Bureau published its first set of poverty estimates. Two years later, the Office of Management and Budget issued a memorandum that established the nation’s “official” poverty measure and charged the Census Bureau with responsibility for providing annual poverty estimates. Over the past fifty years, there have been numerous efforts to improve the official poverty measure, including an Interagency Poverty Studies Task Force in the 1970s and a National Academy of Sciences expert panel in the 1990s. These efforts triggered research by economists at the Census Bureau and the Bureau of Labor Statistics resulting in the November 2011 publication of poverty estimates using a new “Supplemental Poverty Measure.” For the past three years, the Census Bureau has published two sets of national poverty estimates: one using the official method and one using the Supplemental Poverty Measure. President Lyndon Johnson declares War on Poverty, January 1964. The Office of Economic Opportunity adopts Mollie Orshansky’s poverty thresholds as a working definion of poverty for stascal planning, May 1965. An Interagency Poverty Studies Task Force is established under the leadership of the Department of Health and Human Services (then Health, Educaon, and Welfare), 1974. Office Of Management and Budget issues Stascal Policy Direcve No. 14 specifying the definion of poverty for stascal purposes, May 1978. The Census Bureau holds a conference in Williamsburg, Virginia, on the measurement of noncash benefits, December 1985. Naonal Academy of Sciences convenes a panel of experts to conduct a study of stascal issues in the measurement and understanding of poverty, June 1992. An Interagency Technical Working Group on Developing a Supplemental Poverty Measure is formed by Commerce Under Secretary Rebecca Blank and Office of Management and Budget Chief Stascian Katherine Wallman and charged with developing a set of inial starng points to permit the U.S. Census Bureau, in cooperaon with the Bureau of Labor Stascs, to produce a Supplemental Poverty Measure, December 2009 The Panel on Poverty and Family Assistance publishes a report proposing a new approach for measuring poverty. Constance F. Citro and Robert T. Michael (editors), Measuring Poverty: A New Approach, Washington, D.C., Naonal Academy Press, 1995. The first appearance of naonal-level poverty populaon data in a Census publicaon is in a table in an August 1967 advance report. The first full Census Bureau report on the subject of poverty is issued. U.S. Bureau of the Census, Current Populaon Reports, Series P-60, No. 54, The Extent of Poverty in the United States: 1959 to 1966, Washington, D.C., U.S. Government Prinng Office, May 31, 1968. The final report of the Poverty Studies Task Force summarizing informaon collected in 17 technical papers, is submied to Congress. U.S. Department of Health, Educaon, and Welfare, The Measure of Poverty: A Report to Congress as Mandated by The Educaon Amendments of 1974, Washington, D.C., U.S. Government Prinng Office, April 1976. The proceedings of the 1985 Williamsburg conference are published by the Census Bureau. U.S. Bureau of the Census, Conference on the Measurement of Noncash Benefits, December 12- 14, 1985. Proceedings. Vol. I, 1986. Census Bureau publishes reports on the official poverty measure annually. The most recent in September 2013. DeNavas-Walt, Carmen, Bernadee D. Proctor, and Jessica C. Smith. Income, Poverty, and Health Insurance Coverage in the United States: 2012. U.S. Census Bureau, Current Populaon Reports, P60-245, U.S. Government Prinng Office, Washington DC, September 2013. The Census Bureau releases its third annual report on the Supplemental Poverty Measure. The Supplemental Poverty Measure provides informaon on the effects of government programs that are not included in the official poverty measure. Short, Kathleen. The Research Supplemental Poverty Measure: 2012, U.S. Census Bureau, Current Populaon Reports, P60-247, November 2013. Source: Gordon M. Fisher, “The Development and History of the Poverty Thresholds,” Social Security Bullen, Vol. 55, No. 4, Winter 1992, for the history of the official poverty measure presented here. Issue 1990 to 1997 Report Title Current Population Reports Consumer Income Current Population Reports Experimental Poverty Measures Income, Poverty, and Health Insurance Coverage in the United States: 2012 Current Population Reports U.S. Department of Commerce Consumer Income The Research SUPPLEMENTAL POVERTY MEASURE: 2010 INTRODUCTION Current Population Reports
Transcript
PovertySource: Current Population Survey Annual Social and Economic Supplements, 1960-2013.
The Census Bureau issues the fi rst report on experimental poverty measures responding to the NAS report. Kathleen Short, Thesia Garner, David Johnson, and Patricia Doyle, Experimental Poverty Measures: 1990 to 1997, U.S. Census Bureau, Current Populati on Reports, P60-205, Washington, D.C., U.S. Government Printi ng Offi ce, June 1999.
The Census Bureau issues its fi rst paper on the valuati on of noncash benefi ts and poverty measures.U.S. Bureau of the Census, Technical Paper 50, Alternati ve Methods for Valuing Selected In-Kind Transfer Benefi ts and Measuring Their Eff ect on Poverty (by Timothy M. Smeeding), Washington, D.C., U.S. Government Printi ng Offi ce, March 1982.
Poverty: The History of a MeasurePresident Johnson’s January 1964 declaration of his
“War on Poverty” generated a new interest in measuring just
how many people were in poverty and how those numbers
changed from year to year. The next year the Offi ce of
Economic Opportunity adopted a working defi nition of
poverty based on a methodology for counting the poor
that had been proposed by Mollie Orshansky, an analyst
at the Social Security Administration. In 1967, the Census
Bureau published its fi rst set of poverty estimates. Two
years later, the Offi ce of Management and Budget issued a
memorandum that established the nation’s “offi cial” poverty
measure and charged the Census Bureau with responsibility
for providing annual poverty estimates.
Over the past fi fty years, there have been numerous
efforts to improve the offi cial poverty measure, including
an Interagency Poverty Studies Task Force in the 1970s and
a National Academy of Sciences expert panel in the 1990s.
These efforts triggered research by economists at the Census
Bureau and the Bureau of Labor Statistics resulting in the
November 2011 publication of poverty estimates using a
new “Supplemental Poverty Measure.” For the past three
years, the Census Bureau has published two sets of national
poverty estimates: one using the offi cial method and one
using the Supplemental Poverty Measure.
President Lyndon Johnson declares War on Poverty, January 1964.
The Offi ce of Economic Opportunity adopts Mollie Orshansky’s poverty thresholds as a working defi niti on of poverty for stati sti cal planning, May 1965.
An Interagency Poverty Studies Task Force is established under the leadership of the Department of
Health and Human Services (then
Health, Educati on, and Welfare), 1974.
Offi ce Of Management and Budget issues Stati sti cal Policy Directi ve No. 14 specifying the defi niti on of poverty for stati sti cal purposes, May 1978.
The Census Bureau holds a conference in Williamsburg, Virginia, on the measurement of noncash benefi ts, December 1985.
Nati onal Academy of Sciences convenes a panel of experts to conduct a study of stati sti cal issues in the measurement and understanding of poverty,
June 1992.
An Interagency Technical Working Group on Developing a Supplemental Poverty Measure is formed by Commerce Under Secretary Rebecca Blank and Offi ce of Management and Budget Chief Stati sti cian Katherine Wallman and charged with developing a set of initi al starti ng points to permit the U.S. Census Bureau, in cooperati on with the Bureau of Labor Stati sti cs, to produce a Supplemental Poverty Measure, December 2009
The Panel on Poverty and Family Assistance publishes a report proposing a new approach for measuring poverty. Constance F. Citro and Robert T. Michael (editors), Measuring
Poverty: A New Approach, Washington, D.C., Nati onal Academy Press, 1995.
The fi rst appearance of nati onal-level poverty populati on data in a Census publicati on is in a table in an August 1967 advance report. The fi rst full Census Bureau report on the subject of poverty is issued.U.S. Bureau of the Census, Current Populati on Reports, Series P-60, No. 54, The Extent of Poverty in the United States: 1959 to 1966, Washington, D.C., U.S. Government Printi ng Offi ce, May 31, 1968.
The fi nal report of the Poverty Studies Task Force summarizing informati on collected in 17 technical papers, is submitt ed to Congress.U.S. Department of Health, Educati on, and Welfare, The Measure of Poverty: A Report to Congress as Mandated by The Educati on Amendments of 1974, Washington, D.C., U.S. Government Printi ng Offi ce, April 1976.
The proceedings of the 1985 Williamsburg conference are published by the Census Bureau.U.S. Bureau of the Census, Conference on the Measurement of Noncash Benefi ts, December 12-14, 1985. Proceedings. Vol. I, 1986.
Census Bureau publishes reports on the offi cial poverty measure annually. The most recent in September 2013.DeNavas-Walt, Carmen, Bernadett e D. Proctor, and Jessica C. Smith. Income, Poverty, and Health Insurance Coverage in the United States: 2012. U.S. Census Bureau, Current Populati on Reports, P60-245, U.S. Government Printi ng Offi ce, Washington DC, September 2013.
The Census Bureau releases its third annual report on the Supplemental Poverty Measure. The Supplemental Poverty Measure provides informati on on the eff ects of government programs that are not included in the offi cial poverty measure.Short, Kathleen. The Research Supplemental Poverty Measure: 2012, U.S. Census Bureau, Current Populati on Reports, P60-247, November 2013.
Source: Gordon M. Fisher, “The Development and History of the Poverty Thresholds,” Social Security Bulleti n, Vol. 55, No. 4, Winter 1992, for the history of the offi cial poverty measure presented here.
PresidentPresidentdeclares War on Poverty, declares War on Poverty, January 1964.January 1964.
The The adopts Mollie Orshansky’s poverty adopts Mollie Orshansky’s poverty thresholds as a working defi niti on thresholds as a working defi niti on of poverty for stati sti cal planning,of poverty for stati sti cal planning,May 1965May 1965
An Interagency Poverty An Interagency Poverty Studies Task Force is Studies Task Force is established under established under the leadership of the leadership of the leadership of the leadership of the Department of the Department of
Health and Human Health and Human ServicesServicesServicesServices
Offi ce Of Management and Budget Offi ce Of Management and Budget issues Stati sti cal Policy Directi ve issues Stati sti cal Policy Directi ve No. 14 specifying theNo. 14 specifying theof poverty for stati sti cal of poverty for stati sti cal purposes,purposes,
The Census BureauThe Census Bureauconference in Williamsburg, conference in Williamsburg, Virginia, on the measurement Virginia, on the measurement of noncash benefi ts, of noncash benefi ts, December 1985.December 1985.
Nati onal Academy of SciencesNati onal Academy of Sciencesconvenes a panel of experts to convenes a panel of experts to conduct a study of stati sti cal conduct a study of stati sti cal issues in the measurement and issues in the measurement and understanding of poverty, understanding of poverty,
June 1992.June 1992.
when combined withProgram Logo
U.S.Department of CommerceEconomics and Statistics Administration
U.S. CENSUS BUREAU
Issue1990to 1997
Demographic Programs
Issued June 1999
P60-205
Report Title
Current Population Reports
Consumer Income
Current Population Reports
ExperimentalPoverty Measures
By Kathleen Short, Thesia Garner,
David Johnson, and Patricia Doyle
Issued September 2013P60-245
By Carmen DeNavas-Walt, Bernadette D. Proctor, Jessica C. Smith
Income, Poverty, and Health Insurance Coverage in the United States: 2012Current Population Reports
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Consumer Income
U.S. Department of CommerceEconomics and Statistics Administration
U.S. CENSUS BUREAU
The Research SUPPLEMENTAL POVERTY MEASURE: 2010
IntroductIon
The current official poverty measure was developed in the early 1960s, and only a few minor changes have been implemented since it was first adopted in 1969 (Orshansky, 1963, 1965a, 1965b; Fisher, 1992). This measure consists of a set of thresholds for families of dif-ferent sizes and compositions that are compared to before-tax cash income to determine a family’s poverty status. At the time they were developed, the official poverty thresholds represented the cost of a minimum diet multiplied by three (to allow for expenditures on other goods and services).
Concerns about the adequacy of the offi-cial measure have increased during the past decade (Ruggles, 1990), culminating in a congressional appropriation in 1990 for an independent scientific study of the concepts, measurement methods, and information needs for a poverty measure. In response, the National Academy of Sciences (NAS) established the Panel on Poverty and Family Assistance, which released its report titled Measuring Poverty: A New Approach in the spring of 1995, (Citro and Michael, 1995). Based on its assessment of the weaknesses of the current poverty measure, this NAS panel of experts recommended having a mea-sure that better reflects contemporary social and economic realities and govern-ment policy. In their report, the NAS panel identified several major weaknesses of the current poverty measure.
• The current income measure does not reflect the effects of key government
policies that alter the disposable income available to families and, hence, their poverty status. Examples include payroll taxes, which reduce disposable income, and in-kind public benefit programs such as the Food Stamp Program/Supplemental Nutri-tion Assistance Program (SNAP) that free up resources to spend on nonfood items.
• The current poverty thresholds do not adjust for rising levels and standards of living that have occurred since 1965. The official thresholds were approximately equal to half of median income in 1963–64. By 1992, one half median income had increased to more than 120 percent of the official threshold.
• The current measure does not take into account variation in expenses that are necessary to hold a job and to earn income—expenses that reduce dispos-able income. These expenses include transportation costs for getting to work and the increasing costs of child care for working families resulting from increased labor force participa-tion of mothers.
• The current measure does not take into account variation in medical costs across population groups depend-ing on differences in health status and insurance coverage and does not account for rising health care costs as a share of family budgets.
• The current poverty thresholds use family size adjustments that are
