An Updated Measure of Poverty

An accurate measure of poverty is necessary to fully understand how the economy is performing across all segments of the population and to assess the effects of government policies on communities and families. In addition, poverty statistics are essential in determining the size and composition of the population whose basic needs are going unmet and to help society target resources to address those needs. An Updated Measure of Poverty: (Re)Drawing the Line recommends updating the methodology used by the Census Bureau to calculate the Supplemental Poverty Measure (SPM) to reflect household basic needs. This report recommends that the more comprehensive SPM replace the current Official Poverty Measure as the primary statistical measure of poverty the Census Bureau uses. The report assesses the strengths and weaknesses of the SPM and provides recommendations for updating its methodology and expanding its use in recognition of the needs of most American families such as medical care, childcare, and housing costs. Table of Contents Front Matter Summary 1 Introduction 2 Conceptual Basis of the Supplemental Poverty Measure Appendix 2A: Algebraic Representations of the Supplemental Poverty Measure and the Principal Poverty Measure 3 Challenging Categories: Medical Care Appendix 3A: Alternative Approaches to Accounting for Medical Care in a Poverty Measure Appendix 3B: Examples of PPM versus SPM Treatment of Health Insurance and Medical Care 4 Challenging Categories: Childcare 5 Challenging Categories: Housing/Shelter 6 Data and Statistical Issues Appendix 6A: SPM/PPM Threshold Components - Availability in the CE Interview Survey/Taken from Other Sources Appendix 6B: SPM/PPM Resource Components - Availability in the CPS-ASEC and ACS References Appendix A: Background and Specification of the OPM and the SPM Appendix B: Summary of Public Comments Appendix C: Biographical Sketches of Panel Members Committee on National Statistics