A new method for measuring historical poverty trends: Incorporating geographic differences in the cost of living using the Supplemental Poverty Measure

Laura Nolan (), Irwin Garfinkel, Neeraj Kaushal, JaeHyun Nam, Jane Waldfogel and Christopher Wimer
Additional contact information
Laura Nolan: Mathematica Policy Research, Postal: 505 14th St., Suite 800, Oakland, CA 94612, USA
Irwin Garfinkel: Columbia University, Postal: School of Social Work, Columbia University, New York, NY, USA
Neeraj Kaushal: Columbia University, Postal: School of Social Work, Columbia University, New York, NY, USA
JaeHyun Nam: Columbia University, Postal: School of Social Work, Columbia University, New York, NY, USA
Jane Waldfogel: Columbia University, Postal: School of Social Work, Columbia University, New York, NY, USA
Christopher Wimer: Columbia University, Postal: School of Social Work, Columbia University, New York, NY, USA

Journal of Economic and Social Measurement, 2016, issue 3, 237-264

Abstract: The U.S. Census Bureau and the Bureau of Labor Statistics recently developed a substantially improved measure of poverty, the Supplemental Poverty Measure (SPM). The SPM has only been released since 2009, and prior efforts by researchers to construct a historical SPM time series have not taken into account an essential element of the new measure - geographical differences in the cost of living - which is necessary for accurately describing poverty trends in important demographic and regional subgroups. We build the first historical SPM time series from 1967-2014 that adjusts poverty thresholds for cost of living. We do so bringing together a constellation of data sources - the Current Population Survey, the Decennial Census, the Department of Housing and Urban Development's Fair Market Rents, and others. We find that geographically adjusting thresholds increases poverty rates in metro areas, the Western states, and among Latinos, but decreases poverty rates in non-metro areas and in the South. The geographic adjustment of poverty thresholds is an impactful component of the SPM.

Keywords: Poverty measurement; Supplemental Poverty Measure; Current Population Survey (search for similar items in EconPapers)
JEL-codes: A13 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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