Panel Paper: The Supplemental Poverty Measure: Examining the Incidence Poverty in the U.S. Taking Account of Taxes and Transfers

Thursday, November 7, 2013 : 11:30 AM
Thomas Salon (Washington Marriott)

*Names in bold indicate Presenter

Kathleen Short, US Census Bureau
Last year the US Census Bureau released its second report on the Supplemental Poverty Measure (SPM) being developed with support from the Bureau of Labor Statistics (BLS). The SPM extends the information provided by the official poverty measure by explicitly including many of the government programs designed to assist low-income families and individuals. Many of these programs are not included in the current official poverty measure. This paper presents estimates of the prevalence of poverty in the United States, overall and for selected demographic groups, for the official and SPM measures. Section one presents differences between the official poverty measure and the SPM. I examine the composition of the poverty populations using the two measures across subgroups to better understand the incidence and receipt of benefits and taxes that are missed in the official statistics. The distribution of income-to-poverty threshold ratios are estimated and compared for the two measures as are state level poverty estimates. The second section examines the SPM itself. Effects of benefits and expenses on SPM rates are explicitly examined and SPM estimates for 2012 are compared to the 2011 figures to assess changes in SPM rates from the previous year.