IDEAS home Printed from https://ideas.repec.org/p/aji/briefs/20409.html
   My bibliography  Save this paper

Monthly Poverty Rates in the United States during the COVID-19 Pandemic

Author

Listed:
  • Zachary Parolin

    (Columbia University)

Abstract

This report presents monthly poverty rates in the U.S. before and throughout the Covid-19 pandemic. In contrast to measures of poverty based on a family’s annual resources, we project poverty rates based on a family’s monthly resources. We find that the monthly poverty rate increased from 15% to 16.7% from February to September 2020, even after taking the CARES Act’s income transfers into account. Increases in monthly poverty rates have been particularly acute for Black and Hispanic people, as well as for children. In April and May, the CARES Act was successful in offsetting potential increases in poverty, but was not successful in preventing a rise in deep poverty, defined as having monthly income lower than half the monthly poverty threshold. Moreover, the CARES Act’s stimulus checks and unemployment benefits lifted more than 18 million people out of poverty in April, but this number fell to around 4 million people in August and September after the expiration of the CARES Act’s $600 per week unemployment supplement. As a result, the monthly poverty rate in September was higher than rates during April or May, and also higher than pre-crisis levels. Given projections that high unemployment rates may persist throughout the next year, additional income transfers are likely necessary to blunt further increases in poverty.

Suggested Citation

  • Zachary Parolin, 2020. "Monthly Poverty Rates in the United States during the COVID-19 Pandemic," Poverty and Social Policy Brief 20409, Center on Poverty and Social Policy, Columbia University.
    • Handle: RePEc:aji:briefs:20409
    as

    Download full text from publisher

    File URL: https://static1.squarespace.com/static/5743308460b5e922a25a6dc7/t/5f87c59e4cd0011fabd38973/1602733471158/COVID-Projecting-Poverty-Monthly-CPSP-2020.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marianne P. Bitler & Hilary W. Hoynes & Diane Whitmore Schanzenbach, 2020. "The Social Safety Net in the Wake of COVID-19," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 119-158.
    2. Zachary Parolin & Megan Curran & Christoper Wimer, 2020. "The CARES ACT and Poverty in the COVID-19 Crisis: Promises and Pitfalls of the Recovery Rebates and Expanded Unemployment Benefits," Poverty and Social Policy Brief 2048, Center on Poverty and Social Policy, Columbia University.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Richard B. Freeman, 2022. "Planning for the “Expected Unexpected”: Work and Retirement in the U.S. After the COVID-19 Pandemic Shock," NBER Working Papers 29653, National Bureau of Economic Research, Inc.
    2. Carolyn Kousky & Helen Wiley & Len Shabman, 2021. "Can Parametric Microinsurance Improve the Financial Resilience of Low-Income Households in the United States?," Economics of Disasters and Climate Change, Springer, vol. 5(3), pages 301-327, October.
    3. Herzog-Stein, Alexander & Nüß, Patrick & Peede, Lennert & Stein, Ulrike, 2022. "Germany and the United States in coronavirus distress: internal versus external labour market flexibility," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 56, pages 1-11.
    4. Radey, Melissa & Lowe, Sarah & Langenderfer-Magruder, Lisa & Posada, Kristine, 2022. "“Showing Everybody’s True Colors”: Informal networks of low-income single mothers and their young children during the COVID-19 pandemic," Children and Youth Services Review, Elsevier, vol. 137(C).
    5. Zachary Parolin & Megan Curran & Jordan Matsudaira & Jane Waldfogel & Christoper Wimer, 2021. "Estimating Monthly Poverty Rates in the United States," Poverty and Social Policy Brief 20415, Center on Poverty and Social Policy, Columbia University.
    6. Angela E. Kilby & Charlie Denhart, 2021. "Location inference on social media data for agile monitoring of public health crises: An application to opioid use and abuse during the Covid-19 pandemic," Papers 2111.01778, arXiv.org.
    7. Zachary Parolin & Sophie Collyer & Megan Curran, 2021. "Sixth Child Tax Credit Payment Kept 3.7 Million Children Out of Poverty in December," Poverty and Social Policy Brief 20416, Center on Poverty and Social Policy, Columbia University.
    8. Angela Zhou & Andrew Koo & Nathan Kallus & Rene Ropac & Richard Peterson & Stephen Koppel & Tiffany Bergin, 2021. "An Empirical Evaluation of the Impact of New York's Bail Reform on Crime Using Synthetic Controls," Papers 2111.08664, arXiv.org, revised Jun 2023.
    9. Nayga, Jr., Rodolfo M. & Valizadeh, Pourya & Melo, Grace, 2022. "SNAP and well-being of low-income households with children before and during the pandemic," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322184, Agricultural and Applied Economics Association.
    10. Xiao Han & Mengxiao Xue & Qi Zhang & Xiaotian Dong, 2022. "Impact of COVID-19 Risk Perception on Emotional Exhaustion among Chinese Hospitality Employees: The Mediating Effect of Job Insecurity," IJERPH, MDPI, vol. 19(22), pages 1-14, November.
    11. Tehila Refaeli & Netta Achdut, 2021. "Financial Strain and Loneliness among Young Adults during the COVID-19 Pandemic: The Role of Psychosocial Resources," Sustainability, MDPI, vol. 13(12), pages 1-18, June.
    12. Jeehoon Han & Bruce D. Meyer & James X. Sullivan, 2022. "Real-Time Poverty, Material Well-Being, and the Child Tax Credit," National Tax Journal, University of Chicago Press, vol. 75(4), pages 817-846.
    13. Natasha V. Pilkauskas & Brian A. Jacob & Elizabeth Rhodes & Katherine Richard & H. Luke Shaefer, 2023. "The COVID Cash Transfer Study: The Impacts of a One‐Time Unconditional Cash Transfer on the Well‐Being of Families Receiving SNAP in Twelve States," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(3), pages 771-795, June.
    14. Lu Fan & Richard Stebbins & Kyoung Tae Kim, 2022. "Skint: Retirement? Financial Hardship and Retirement Planning Behaviors," Journal of Family and Economic Issues, Springer, vol. 43(2), pages 354-367, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Di Fang & Michael R. Thomsen & Rodolfo M. Nayga & Wei Yang, 2022. "Food insecurity during the COVID-19 pandemic: evidence from a survey of low-income Americans," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(1), pages 165-183, February.
    2. Larrimore, Jeff & Mortenson, Jacob & Splinter, David, 2022. "Earnings shocks and stabilization during COVID-19," Journal of Public Economics, Elsevier, vol. 206(C).
    3. Natalie Cox & Peter Ganong & Pascal Noel & Joseph Vavra & Arlene Wong & Diana Farrell & Fiona Greig & Erica Deadman, 2020. "Initial Impacts of the Pandemic on Consumer Behavior: Evidence from Linked Income, Spending, and Savings Data," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 35-82.
    4. Marianne Bitler & Jason Cook & Danea Horn & Nathan Seegert, 2022. "Incomplete program take-up during a crisis: evidence from the COVID-19 shock in one U.S. state," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1373-1394, December.
    5. Brooke Helppie-McFall & Joanne W. Hsu, 2020. "Financial Profiles of Workers Most Vulnerable to Coronavirus-Related Earnings Loss in the Spring of 2020," Finance and Economics Discussion Series 2020-093, Board of Governors of the Federal Reserve System (U.S.).
    6. Sumedha Gupta & Kosali I. Simon & Coady Wing, 2020. "Mandated and Voluntary Social Distancing During The COVID-19 Epidemic: A Review," NBER Working Papers 28139, National Bureau of Economic Research, Inc.
    7. Katherine Consavage Stanley & Paige B. Harrigan & Elena L. Serrano & Vivica I. Kraak, 2021. "Applying a Multi-Dimensional Digital Food and Nutrition Literacy Model to Inform Research and Policies to Enable Adults in the U.S. Supplemental Nutrition Assistance Program to Make Healthy Purchases ," IJERPH, MDPI, vol. 18(16), pages 1-25, August.
    8. Aaron Chalfin & Shooshan Danagoulian & Monica Deza, 2021. "COVID-19 Has Strengthened the Relationship Between Alcohol Consumption and Domestic Violence," NBER Working Papers 28523, National Bureau of Economic Research, Inc.
    9. Michael E. Martell & Leanne Roncolato, 2023. "Economic Vulnerability of Sexual Minorities: Evidence from the US Household Pulse Survey," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(2), pages 1-74, April.
    10. Rees-Jones, Alex & D’Attoma, John & Piolatto, Amedeo & Salvadori, Luca, 2022. "Experience of the COVID-19 pandemic and support for safety-net expansion," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 1090-1104.
    11. Coleman-Jensen, Alisha & Rabbitt, Matthew P & Gregory, Christian A & Singh, Anita, 2021. "Household Food Security in the United States in 2020," Economic Research Report 327186, United States Department of Agriculture, Economic Research Service.
    12. J. Michael Collins & Amrita Kulka, 2023. "Saving by buying ahead: stockpiling in response to lump‐sum payments," Fiscal Studies, John Wiley & Sons, vol. 44(4), pages 451-484, December.
    13. Miqdad Asaria & Joan Costa-Font & Frank Cowell, 2023. "How does exposure to COVID-19 influence health and income inequality aversion?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(3), pages 625-647, October.
    14. Samuel Kwaku Agyei & Zangina Isshaq & Siaw Frimpong & Anokye Mohammed Adam & Ahmed Bossman & Oliver Asiamah, 2021. "COVID‐19 and food prices in sub‐Saharan Africa," African Development Review, African Development Bank, vol. 33(S1), pages 102-113, April.
    15. Vu, Khoa & Vuong, Nguyen Dinh Tuan & Vu-Thanh, Tu-Anh & Nguyen, Anh Ngoc, 2022. "Income shock and food insecurity prediction Vietnam under the pandemic," World Development, Elsevier, vol. 153(C).
    16. Bilge Erten & Pinar Keskin & Silvia Prina, 2022. "Social Distancing, Stimulus Payments, and Domestic Violence: Evidence from the US during COVID-19," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 262-266, May.
    17. Cicala, Steve, 2021. "The incidence of extreme economic stress: Evidence from utility disconnections," Journal of Public Economics, Elsevier, vol. 200(C).
    18. Zachary Parolin & Megan Curran & Jordan Matsudaira & Jane Waldfogel & Christoper Wimer, 2021. "Estimating Monthly Poverty Rates in the United States," Poverty and Social Policy Brief 20415, Center on Poverty and Social Policy, Columbia University.
    19. Michihito Ando & Masato Furuichi, 2022. "The association of COVID-19 employment shocks with suicide and safety net use: An early-stage investigation," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-26, March.
    20. Guido Matias Cortes & Eliza C. Forsythe, 2020. "Impacts of the Covid-19 Pandemic and the CARES Act on Earnings and Inequality," Upjohn Working Papers 20-332, W.E. Upjohn Institute for Employment Research.

    More about this item

    Keywords

    poverty; COVID-19; social policy; SPM;
    All these keywords.

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aji:briefs:20409. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zachary Parolin (email available below). General contact details of provider: https://edirc.repec.org/data/cpcolus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.