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A new method for measuring historical poverty trends: Incorporating geographic differences in the cost of living using the Supplemental Poverty Measure

Author

Listed:
  • Nolan, Laura

    (Mathematica Policy Research)

  • Garfinkel, Irwin

    (Columbia University)

  • Kaushal, Neeraj

    (Columbia University)

  • Nam, JaeHyun

    (Columbia University)

  • Waldfogel, Jane

    (Columbia University)

  • Wimer, Christopher

    (Columbia University)

Abstract

The U.S. Census Bureau and the Bureau of Labor Statistics recently developed a substantially improved measure of poverty, the Supplemental Poverty Measure (SPM). The SPM has only been released since 2009, and prior efforts by researchers to construct a historical SPM time series have not taken into account an essential element of the new measure - geographical differences in the cost of living - which is necessary for accurately describing poverty trends in important demographic and regional subgroups. We build the first historical SPM time series from 1967-2014 that adjusts poverty thresholds for cost of living. We do so bringing together a constellation of data sources - the Current Population Survey, the Decennial Census, the Department of Housing and Urban Development's Fair Market Rents, and others. We find that geographically adjusting thresholds increases poverty rates in metro areas, the Western states, and among Latinos, but decreases poverty rates in non-metro areas and in the South. The geographic adjustment of poverty thresholds is an impactful component of the SPM.

Suggested Citation

  • Nolan, Laura & Garfinkel, Irwin & Kaushal, Neeraj & Nam, JaeHyun & Waldfogel, Jane & Wimer, Christopher, 2016. "A new method for measuring historical poverty trends: Incorporating geographic differences in the cost of living using the Supplemental Poverty Measure," Journal of Economic and Social Measurement, IOS Press, issue 3, pages 237-264.
    • Handle: RePEc:ris:iosjes:0057
    as

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    Citations

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    Cited by:

    1. Laird, Jennifer & Santelli, Isaac & Waldfogel, Jane & Wimer, Christopher, 2018. "Forgoing Food Assistance out of Fear: Simulating the Child Poverty Impact of a Making SNAP a Legal Liability for Immigrants," SocArXiv 6sgpk, Center for Open Science.
    2. Sarah K. Bruch & Janet C. Gornick & Joseph van der Naald, 2020. "Geographic Inequality in Social Provision: Variation across the US States," NBER Chapters, in: Measuring Distribution and Mobility of Income and Wealth, pages 499-527, National Bureau of Economic Research, Inc.
    3. Pac, Jessica & Nam, Jaehyun & Waldfogel, Jane & Wimer, Chris, 2017. "Young child poverty in the United States: Analyzing trends in poverty and the role of anti-poverty programs using the Supplemental Poverty Measure," Children and Youth Services Review, Elsevier, vol. 74(C), pages 35-49.
    4. Christopher Wimer & Liana Fox & Irwin Garfinkel & Neeraj Kaushal & JaeHyun Nam & Jane Waldfogel, 2021. "Trends in the Economic Wellbeing of Unmarried-Parent Families with Children: New Estimates Using an Improved Measure of Poverty," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 40(6), pages 1253-1276, December.

    More about this item

    Keywords

    Poverty measurement; Supplemental Poverty Measure; Current Population Survey;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

    Statistics

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