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

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  • 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
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    References listed on IDEAS

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    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.
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    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.

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    More about this item

    Keywords

    poverty; COVID-19; social policy; SPM;
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