Advanced Search
MyIDEAS: Login to save this paper or follow this series

A comparison of poverty trends and policy impacts for working families using different poverty indexes

Contents:

Author Info

  • Robert H. DeFina
Registered author(s):

    Abstract

    This study provides empirical evidence on recent trends in poverty among working families based on the headcount rate and a broader alternative that incorporates the headcount rate, the depth of poverty, and income inequality among the poor. Estimates reveal that the indexes produce significantly different trends. The headcount rate indicates a reduction in overall working poverty for the sample period, while the alternative index showed no statistically significant change. The same result was found for various population subgroups. Decompositions of the index changes show that tax changes contributed to lower values for both the headcount rate and the alternative index, largely due to recent expansions of the earned income tax credit. Changes in transfer payments added to measured poverty, mirroring the retrenchment of welfare and other transfer programs. Shifts in market-based income decreased both indexes.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.philadelphiafed.org/research-and-data/publications/working-papers/2007/wp07-13.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Federal Reserve Bank of Philadelphia in its series Working Papers with number 07-13.

    as in new window
    Length:
    Date of creation: 2007
    Date of revision:
    Handle: RePEc:fip:fedpwp:07-13

    Contact details of provider:
    Postal: 10 Independence Mall, Philadelphia, PA 19106-1574
    Web page: http://www.philadelphiafed.org/
    More information through EDIRC

    Order Information:
    Email:
    Web: http://www.phil.frb.org/econ/wps/index.html

    Related research

    Keywords: Poverty;

    This paper has been announced in the following NEP Reports:

    References

    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.:
    as in new window
    1. Card, David, 1996. "The Effect of Unions on the Structure of Wages: A Longitudinal Analysis," Econometrica, Econometric Society, Econometric Society, vol. 64(4), pages 957-79, July.
    2. Lars Osberg & Kuan Xu, 2000. "International Comparisons of Poverty Intensity: Index Decomposition and Bootstrap Inference," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 35(1), pages 51-81.
    3. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, Econometric Society, vol. 44(2), pages 219-31, March.
    4. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 40(4), pages 1105-1166, December.
    5. Card, David, 2001. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 19(1), pages 22-64, January.
    6. Eissa, Nada & Liebman, Jeffrey B, 1996. "Labor Supply Response to the Earned Income Tax Credit," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 111(2), pages 605-37, May.
    7. Brown, Charles, 1999. "Minimum wages, employment, and the distribution of income," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 32, pages 2101-2163 Elsevier.
    8. Bishop, John A & Chow, K Victor & Zheng, Buhong, 1995. "Statistical Inference and Decomposable Poverty Measures," Bulletin of Economic Research, Wiley Blackwell, Wiley Blackwell, vol. 47(4), pages 329-40, October.
    9. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, Econometric Society, vol. 59(3), pages 687-709, May.
    10. Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 30(1), pages 1-61, March.
    11. Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 11(2), pages 123-62, June.
    12. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
    13. Robert K. Triest, 1998. "Has Poverty Gotten Worse?," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(1), pages 97-114, Winter.
    14. Kakwani, Nanak, 1993. "Statistical Inference in the Measurement of Poverty," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 75(4), pages 632-39, November.
    15. John Bishop & John Formby & Buhong Zheng, 1999. "Distribution Sensitive Measures of Poverty in the United States," Review of Social Economy, Taylor & Francis Journals, Taylor & Francis Journals, vol. 57(3), pages 306-343.
    16. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, Econometric Society, vol. 52(3), pages 761-66, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:fip:fedpwp:07-13. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Beth Paul).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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