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Adjusting for family size in the supplemental poverty measure

Author

Listed:
  • John A Bishop
  • Jonathan Lee
  • Lester A Zeager

Abstract

We point out an anomaly in the adjustment for family size in the US Supplemental Poverty Measure (SPM). The equivalence scale for the SPM implies an instance of increasing marginal costs for an additional adult. A similar criticism of the official US poverty measure was one of several concerns that led to the creation of the SPM. We propose two possible solutions for the problem and show that eliminating the anomaly from the SPM has the greatest effect on the poverty rate for the elderly, as that group is more concentrated near the poverty line.

Suggested Citation

  • John A Bishop & Jonathan Lee & Lester A Zeager, 2018. "Adjusting for family size in the supplemental poverty measure," Applied Economics Letters, Taylor & Francis Journals, vol. 25(8), pages 553-556, May.
    • Handle: RePEc:taf:apeclt:v:25:y:2018:i:8:p:553-556
    DOI: 10.1080/13504851.2017.1343444
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    References listed on IDEAS

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    1. Pierre‐André Chiappori, 2016. "Equivalence versus Indifference Scales," Economic Journal, Royal Economic Society, vol. 0(592), pages 523-545, May.
    2. Bruce D. Meyer & James X. Sullivan, 2012. "Identifying the Disadvantaged: Official Poverty, Consumption Poverty, and the New Supplemental Poverty Measure," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 111-136, Summer.
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