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An Updated Measure of Poverty: (Re)Drawing the Line (2023)

Chapter: Appendix 6B: SPM/PPM Resource Components - Availability in the CPS-ASEC and ACS

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Suggested Citation:"Appendix 6B: SPM/PPM Resource Components - Availability in the CPS-ASEC and ACS." National Academies of Sciences, Engineering, and Medicine. 2023. An Updated Measure of Poverty: (Re)Drawing the Line. Washington, DC: The National Academies Press. doi: 10.17226/26825.
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Appendix 6B

SPM/PPM Resource Components—Availability in the CPS-ASEC and ACS

Component CPS-ASEC ACS
REQUIRED FOR CURRENT SPM AND RECOMMENDED PPM
HOUSEHOLD/FAMILY COMPOSITION Required to determine poverty unit for resource estimation/applicable poverty threshold Required to determine poverty unit for resource estimation/applicable poverty threshold
Family type, number of adults and children, etc. YES (detailed information on family relationships) YES (but limited information, which makes it more difficult to establish SPM units; see Fox et al. (2020)
HOUSING TENURE Current SPM: Required to determine applicable poverty threshold and subsidies (renters); PPM: Required to impute implicit rent (owners) Current SPM: required to determine applicable poverty threshold and subsidies (renters); PPM: Required to impute implicit rent (owners)
Tenure YES (owned without mortgage; owned with mortgage [including home equity loan]; rented; no cash rent) YES (owned without mortgage; owned with mortgage [including home equity loan]; rented; no cash rent)
MONEY INCOME Reference period—prior calendar year (except where noted) Reference period—prior 12 months (except where noted)
Earnings (gross) YES YES
Self-employment (net) YES YES
Unemployment compensation YES (federal/state; supplemental; union) Included in All Other income category
Worker’s compensation YES All Other
Social Security YES YES
SSI YES YES
Disability YES All Other
Veterans’ payments YES All Other
Survivor benefits YES All Other
Public assistance (cash) YES YES
Suggested Citation:"Appendix 6B: SPM/PPM Resource Components - Availability in the CPS-ASEC and ACS." National Academies of Sciences, Engineering, and Medicine. 2023. An Updated Measure of Poverty: (Re)Drawing the Line. Washington, DC: The National Academies Press. doi: 10.17226/26825.
×
Component CPS-ASEC ACS
Pensions YES All Other
Annuities YES All Other
Retirement withdrawals YES All Other
Other income earning assets YES (interest, dividends) Property Income
Property income YES (net rent + royalties) Property Income
Educational assistance YES (Pell grants; other assistance) All Other
Child support YES All Other
Financial assistance from friends/relatives YES All Other
Other income YES (Alaska dividend; all other) All Other
IN-KIND BENEFITS Generally requires amount imputation; could also add questions Generally requires receipt and amounts imputation; could also add questionsa
SNAP YES (receipt and amounts) Receipt only; requires amount imputation
School lunch Receipt only; requires amount imputation (Census Bureau uses program information from USDA to estimate amounts) NO; requires imputation (receipt and amount)
Public and subsidized housing Receipt only; requires amount imputation (Census Bureau sets value of housing subsidy by subtracting estimated amount paid by the tenant from the HUD market rent value for the housing unit) NO; requires imputation (receipt and amount)
WIC Receipt only; requires amount imputation (Census Bureau uses program information from USDA to estimate amounts) NO; requires imputation (receipt and amount)
Energy assistance (LIHEAP) YES (receipt and amounts) NO; requires imputation (receipt and amount)
TAXES/TAX CREDITS Calculated by Census Bureau tax model Calculated by National Bureau of Economic Research’s TAXSIM model
Stimulus payments Receipt only; requires amount imputation (relevant for 2020–2021 only) NO; requires imputation (receipt and amount; relevant for 2020–2021 only)
Federal/state taxes NO; simulated NO; simulated
FICA taxes NO; simulated NO; simulated
EITC; other tax credits NO; simulated NO; simulated
NONDISCRETIONARY EXPENSES Subtracted from resources Subtracted from resources
Childcare expenses (work-related) Whether paid for childcare while working; which children needed care; childcare payment; total paid prior year NO; requires imputation
Other work-related expenses (transportation, uniforms, etc.) NO (currently imputed from SIPP) NO (currently imputed from SIPP)
Child support paid YES NO; requires imputation (whether owe and amount)
MOOP Annual MOOP spending for premiums, copays, nonprescription medical care products NO (ascertains whether pays premium, receives premium subsidy); requires imputation (amount)
Suggested Citation:"Appendix 6B: SPM/PPM Resource Components - Availability in the CPS-ASEC and ACS." National Academies of Sciences, Engineering, and Medicine. 2023. An Updated Measure of Poverty: (Re)Drawing the Line. Washington, DC: The National Academies Press. doi: 10.17226/26825.
×
Component CPS-ASEC ACS
REQUIRED FOR RECOMMENDED PPM
EXPANDED CHILDCARE EXPENSE DEDUCTION Extended to parent(s) in school, disabled Extended to parent(s) in school, disabled
Education/disability status; childcare costs Education and disability status ascertained; requires expanded childcare cost questions Education and disability ascertained; requires childcare cost questions
HEALTH INSURANCE COVERAGE Required to determine applicable poverty threshold; caps for MOOP costs/subsidies Required to determine applicable poverty threshold; caps for MOOP costs/subsidies
Type of health Insurance YES; current coverage by: Medicare; Medicaid; state Medicaid; VA; job (private employer, government, military); privately purchased; parent or spouse; Medicare supplements; exchange; group; school; months of coverage YES; current coverage by: current/former employer/union; privately purchased; Medicare; Medicaid; TRICARE; VA; Indian Health Service; other plan
Health insurance premium subsidized by government/employers (capped at health insurance need in threshold) Asks whether premium subsidized; requires imputation (amount) Asks whether premium subsidized; requires imputation (amount)
IMPLICIT NET RENT
(owners) (capped at housing need in threshold)
Implicit rent (including utilities) net of ownership expenses added to owner resources Implicit rent (including utilities) net of ownership expenses added to owner resources
What unit would rent for (owners) NO; but home value available for imputation NO; but home value available for imputation
Property taxes/insurance/condo fees/mobile home fees (subtracted for owners) NO; requires added questions or imputation YES; annual real estate taxes; annual fire, flood insurance; monthly condo fee; annual mobile home fees
Maintenance (subtracted for owners) NO; requires added questions or imputation NO; requires added questions or imputation
Mortgage payment (interest and principal on 1st mortgage) (subtracted for owners) Whether mortgage (no amount, no indication of whether mortgage payment includes taxes/insurance); whether 2nd mortgage/home equity loan (no amount); requires added questions or imputation (also may require ascertaining principal separately from interest) YES; whether 1st mortgage; monthly mortgage payment; does mortgage payment include taxes/insurance; whether 2nd mortgage/home equity loan, monthly payment on all such; may require ascertaining principal separately from interest)

SOURCE: CPS-ASEC Questionnaire, www2.census.gov/programs-surveys/cps/techdocs/cpsmar21.pdf; ACS Questionnaire, www.census.gov/programs-surveys/acs/methodology/questionnaires/2021/quest21.pdf?msclkid=20e8cd0cc00511ec9b0fd8cd62e6a9ae.

a See Fox et al. (2022) for imputation methods used for SNAP and other resource components to produce SPM measures for 2014–2017 from the ACS Public Use Microdata Files.

Suggested Citation:"Appendix 6B: SPM/PPM Resource Components - Availability in the CPS-ASEC and ACS." National Academies of Sciences, Engineering, and Medicine. 2023. An Updated Measure of Poverty: (Re)Drawing the Line. Washington, DC: The National Academies Press. doi: 10.17226/26825.
×
Page 102
Suggested Citation:"Appendix 6B: SPM/PPM Resource Components - Availability in the CPS-ASEC and ACS." National Academies of Sciences, Engineering, and Medicine. 2023. An Updated Measure of Poverty: (Re)Drawing the Line. Washington, DC: The National Academies Press. doi: 10.17226/26825.
×
Page 103
Suggested Citation:"Appendix 6B: SPM/PPM Resource Components - Availability in the CPS-ASEC and ACS." National Academies of Sciences, Engineering, and Medicine. 2023. An Updated Measure of Poverty: (Re)Drawing the Line. Washington, DC: The National Academies Press. doi: 10.17226/26825.
×
Page 104
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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.

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