This article examines how accounting for cost-of-living differences across metropolitan and nonmetropolitan areas affects measured rates of poverty. The spatial price index used is based on the Fair Market Rent data and was developed by the Census Bureau for use in its experimental poverty research program. Following U.S. federal definitions, poverty in nonmetro areas has been consistently higher than it has been in metro areas. Using the Fair Market Rent index to adjust for differences in cost of living results in a complete reversal of nonmetro-metro rankings in terms of prevalence, depth, and severity of poverty for every year examined (1991 to 2002). (JEL I32, R1, C81) Copyright 2006, Oxford University Press.
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Article provided by Oxford University Press in its journal Economic Inquiry.
Volume (Year): 44 (2006) Issue (Month): 2 (April) Pages: 296-310 Download reference. The following formats are available: HTML
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Find related papers by JEL classification: I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty R1 - Urban, Rural, and Regional Economics - - General Regional Economics C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Microeconomic Data
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