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The Cost of Living and the Geographic Distribution of Poverty

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Author Info
Jolliffe, Dean

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Abstract

The prevalence of poverty has been greater in nonmetro areas than in metro areas in every year since the 1960s when poverty rates were first officially recorded. Accordingly, Federal funds for social assistance programs and community development have favored nonmetro areas. This study suggests that adjusting poverty measures to account for cost-of-living differences between metro and nonmetro areas reverses that ranking. Once adjusted for cost-of-living differences using the Fair Market Rents index, metro poverty is greater than nonmetro poverty in terms of prevalence, depth, and severity over the entire 1991-2002 study period.

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Publisher Info
Paper provided by United States Department of Agriculture, Economic Research Service in its series Economic Research Report with number 7254.

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Date of creation: 2006
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Handle: RePEc:ags:uersrr:7254

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Related research
Keywords: Poverty; cost-of-living adjustments; Fair Market Rents data; urban-rural comparison; sample design; Current Population Survey; Food Security and Poverty;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May. [Downloadable!] (restricted)
  2. Dean Jolliffe & Anastassia Semykina, 2000. "Robust standard errors for the Foster-Greer-Thorbecke class of poverty indices," Stata Technical Bulletin, StataCorp LP, vol. 9(51). [Downloadable!]
  3. Dean Jolliffe, 2003. "On the Relative Well-Being of the Nonmetropolitan Poor: An Examination of Alternate Definitions of Poverty during the 1990s," Southern Economic Journal, Southern Economic Association, vol. 70(2), pages 295-311, October.
  4. Reeder, Richard J., 1996. "How Would Rural Areas Fare Under Block Grants?," Agricultural Information Bulletins 33609, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  5. DuMond J.M. & Hisch, B.T. & Macpherson, D.A., 1996. "Wage Differentials Across Labor Markets and Workers: Does Cost of Living Matter?," Working Papers 1996_08_01, Department of Economics, Florida State University.
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  6. Koo, Jahyeong & Phillips, Keith R & Sigalla, Fiona D, 2000. "Measuring Regional Cost of Living," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(1), pages 127-36, January.
  7. Dean Jolliffe & Gaurav Datt & Manohar Sharma, 2004. "Robust Poverty and Inequality Measurement in Egypt: Correcting for Spatial-price Variation and Sample Design Effects," Review of Development Economics, Blackwell Publishing, vol. 8(4), pages 557-572, November. [Downloadable!] (restricted)
  8. Dean Jolliffe, 2001. "Estimating Sampling Variance from the Current Population Survey: A Synthetic Design Approach to Correcting Standard Errors," Econometrics 0110006, EconWPA, revised 20 Oct 2001. [Downloadable!]
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  9. Dean Jolliffe, 2006. "Poverty, Prices, and Place: How Sensitive is the Spatial Distribution of Poverty to Cost of Living Adjustments?," Economic Inquiry, Oxford University Press, vol. 44(2), pages 296-310, April. [Downloadable!] (restricted)
  10. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March. [Downloadable!] (restricted)
  11. Kakwani, Nanak, 1993. "Statistical Inference in the Measurement of Poverty," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 632-39, November. [Downloadable!] (restricted)
  12. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  13. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Angle, John & Nielsen, Francois & Scalas, Enrico, 2009. "The Kuznets Curve and the Inequality Process," MPRA Paper 16058, University Library of Munich, Germany, revised 29 Jun 2009. [Downloadable!]
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This page was last updated on 2009-11-11.

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