An Updated Measure of Poverty (Re)Drawing the Line (2023) / Chapter Skim
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Pages 91-101
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From page 91... ...
While explicit recommendations for improving response rates in the CPS-ASEC are beyond the scope of this report, the panel notes that long-running household panels like the Panel Study of Income Dynamics (PSID) have item nonresponse rates on earnings that are about one-third the level found in the CPS-ASEC.
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From page 92... ...
Item Nonresponse Rates to Expenditure Questions In the CE, item response rates are not easily calculated. Since many questions ask only for the dollar amount and not the incidence of purchase, standard item response rates are not available.
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From page 93... ...
, which, in turn, may distort estimates of poverty, unemployment, and other measures of household wellbeing.19 6.4. ADMINISTRATIVE DATA FOR IMPROVING INCOME ESTIMATES Administrative records have a long history of use within household survey methodology, to provide control totals for weighting adjustments.
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From page 94... ...
on Evaluating Alternative Measures of Poverty (BLS, 2020) that the Census Bureau should accelerate its examination of a variety of approaches for integrating administrative data into poverty measurement, including replacement, using both sources, and regression-based imputation.
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From page 95... ...
IRS form Public Assistance States: DHHS: TANF Not available for all states; not all cash assistance covered Veterans' Benefits Veterans Administration: Administrative data Some benefit data available for limited uses (limited) Disability IRS: 1099-R, limited data Excludes Social Security and VA Survivor Income IRS: 1099-R, limited data Excludes Social Security and VA Interest IRS: 1040 Includes taxable and nontaxable; excludes tax-preferred IRS: 1099-INT -- not available Dividends IRS: 1040 Excludes tax-preferred IRS: 1099-DIV -- not available Rent and Royalty IRS: 1040 Only gross rent Income IRS: 1040 Schedule E, K-1 -- not available Excludes depreciation Educational IRS: 1098-T, 1099-Q -- not available 1098-T covers financial aid; 1099-Q covers spending Assistance from tax-preferred education accounts (529, Coverdell)
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From page 96... ...
The Foundations for Evidence-Based Policymaking Act of 2018 (Section 303) 23 establishes a presumption that federal agency administrative records will be available to the Census Bureau and other federal statistical agencies, but implementation of the Act is a work in progress.
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From page 97... ...
In particular, the Census Bureau should aggressively explore the strategy of using federal and state administrative records to improve models for imputation for item nonresponse, including nonreporting of receipt as well as amounts. RECOMMENDATION 6.3: In developing a Principal Poverty Measure that integrates administrative data to the greatest extent possible, the Census Bureau should produce a historical series comparing an experimental Supplemental Poverty Measure (SPM)
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From page 98... ...
6.6.2. Technical Issues -- Consumer Unit Universe, Equivalence Scale, Multiplier The broadest and most representative group of CUs for estimating thresholds for the PPM would include single persons, couples, and all other CU types in the common threshold calculation.25 RECOMMENDATION 6.5: For calculating Principal Poverty Measure thresholds, the Bureau of Labor Statistics should use all consumer units captured in the Consumer Expenditure Survey (CE)
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From page 99... ...
RECOMMENDATION 6.6: The Census Bureau and Bureau of Labor Statistics should reexamine the use of the three-parameter scale to respecify the basic needs bundle for the Principal Poverty Measure (PPM)
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From page 100... ...
maintenance; BLS imputes rental assistance Utilities (including obtained with CE, BLS imputes Low Income Home Energy Assistance Program [LIHEAP] subsidies)
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From page 101... ...
for applicable metropolitan area/nonmetropolitan county (housing subsidies added to resources for renters; implicit rent net of expenses added to resources for owners) FINAL THRESHOLDS For applicable CU composition/location, revised basic bundle + multiplier + health insurance + housing/utilities FUTURE ADDITION -- CHILDCARE The PPM extends childcare out-of-pocket costs that are subtracted from resources to parents who are in school or disabled; in a future revision, the panel recommends that childcare needs be added to the thresholds in a similar manner to health insurance and childcare subsidies be added to resources SOURCE: For current SPM methodology, see www.bls.gov/pir/spmhome.htm.
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