What is a supplemental poverty measure?

Beginning in 2011, the U.S. Census Bureau began publishing the Supplemental Poverty Measure (SPM), which extends the official poverty measure by taking account of many of the government programs designed to assist low-income families and individuals that are not included in the official poverty measure.

How does the supplemental poverty measure differ from the official measure?

The official poverty measure is based on cash resources. The supplemental poverty measure uses cash resources and also includes noncash benefits and subtracts necessary expenses (such as taxes and medical expenses).

Is the supplemental poverty measure relative or absolute?

While the Standard is an absolute measure based on the prices of each item in the threshold, the NAS is a relative measure, pegged to expenditure levels of families at the 33rd percentile; because living standards rise faster than prices, this means that thresholds based on the NAS methodology would rise faster than …

What are the main measures of poverty?

Official Poverty Measure

• Earnings.
• Unemployment and workers’ compensation.
• Social Security.
• Supplemental Security Income.
• Public assistance.
• Veterans’ payments.
• Pension or retirement income.
• Interest.

What state has the highest supplemental poverty rate?

States, federal district, and territories

What factors are ignored by the supplemental poverty measure?

It ignores all non-cash benefits (such as SNAP, formerly called food stamps) and working-family tax credits such as the Earned Income Tax Credit (EITC) and Child Tax Credit.

Is the supplemental poverty measure relative?

The official measure, developed in the 1960s, is based on a family’s cash income relative to national thresholds below which a family is considered to be in poverty. Since 2010, the Census Bureau has also issued a supplemental poverty measure (SPM).

Why is the supplemental poverty measure better?

Compared with the official measure, the SPM shows much smaller age-group differences in poverty rates (refer to the chart). For children, the average welfare ratio is much higher for those poor under the SPM (. 630) than for those poor under the official measure (. 497).

How does the official poverty measure differ from the supplemental measure?

The official poverty measure compares an individual’s or family’s pretax cash income to a set of thresholds that vary by the size of the family and the ages of the family members. These official poverty calculations do not take into account the value of in-kind benefits, such as those provided by nutrition assistance or housing and energy programs.

When did the Census Bureau start the Supplemental Poverty Measure?

The Census Bureau introduced the Supplemental Poverty Measure or SPM in 2010 to provide an alternative view of poverty in the United States that better reflects life in the 21st century, including contemporary social and economic realities and government policy.

How is the SPM different from other poverty measures?

Differences between the two measures are more significant for certain age groups. For example, the SPM shows higher poverty rates among adults 65 years and older as a result of how it measures resources and households.

Is there a better way to measure poverty?

Is There a Better Way to Do It? A key assessment of poverty in America is the Official Poverty Measure (OPM), which is calculated by the United States Census Bureau using a range of income and economic data.