Poverty measures
Download
1 / 15

POVERTY MEASURES - PowerPoint PPT Presentation


  • 147 Views
  • Updated On :

POVERTY MEASURES. FDR: "one-third of a nation ill-housed, ill-clad, ill-nourished" US Poverty Rate: absolute standard Ireland, Smeeding “relative poverty rate” Canada: Low-income limit, based on disposable income World Bank: Consumption levels below $1 or $2 per day.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'POVERTY MEASURES' - danno


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Poverty measures l.jpg
POVERTY MEASURES

  • FDR: "one-third of a nation ill-housed, ill-clad, ill-nourished"

  • US Poverty Rate: absolute standard

  • Ireland, Smeeding “relative poverty rate”

  • Canada: Low-income limit, based on disposable income

  • World Bank: Consumption levels below $1 or $2 per day.



What is poverty l.jpg
What is Poverty?

  • In 1963-1964, Molly Orshansky based poverty thresholds on the “thrifty food plan”,

  • Thrifty food budget (family of 4) = $1,033

  • Families spent 1/3 of their budget on food.

  • 1963 Poverty level = $3,100

  • Subsequent years, adjusted for CPI inflation index



Problems with definition of poverty l.jpg
Problems with definition of Poverty

  • Wealth and debt not counted

  • Unusual family expenditures not counted.

  • Regional living costs

  • Families now spend only 1/6th income on food

  • MEASURING INCOME……….


Measuring income l.jpg
Measuring Income

  • money income before taxes, including wages, salaries, interest, dividends, self-employment income, welfare payments (TANF), unemployment insurance, and social security payments.

  • Poverty Reportfrom March Current Population Survey, 50,000 households


Problems with the definition of family income l.jpg
Problems with the Definition of Family Income

  • Income not counted: Food Stamps, Medicaid & Medicare, Public Housing

  • Persons not counted: the institutionalized, Army barracks, unrelated individuals under 15


Problems defining family l.jpg
Problems defining “Family”

  • Must be related

  • Family defined in March,BUT Income, defined in previous year

  • Unrelated children individual counted as neither poor nor non-poor.


Overcounting the poor l.jpg
Overcounting the poor?

  • Inflation adjustment overestimates inflation.

  • Food stamps not counted as income.

  • Other in-kind benefits (which have increased overtime) not counted. (Housing, Medical).

  • Earned Income Tax Credit not counted.

  • Under reporting of income.


Undercounting the poor l.jpg
Undercounting the Poor?

  • Food now takes 1/6 of typical budget.

  • High regional living costs

  • Unusual family living costs (e.g., medical)

  • Increased FICA (social security) taxes

  • Sample under-represents poor