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Improvements to the Census Bureau’s Supplemental Poverty Measure for 2021
Improvements to the Census Bureau’s Supplemental Poverty Measure for 2021
Following decades of research on poverty measurement and guidance from a National Academies of Sciences Panel and the Interagency Technical Working Group on Developing a Supplemental Poverty Measure (SPM), in 2011 the Census Bureau released the first annual SPM report. Since this first publication, no major changes have been made to the SPM, but research has been ongoing at the BLS and Census Bureau on potential improvements and validation of prior assumptions. The Office of Management and Budget (OMB) has established a new interagency technical working group, which set 2021 as a target for making methodological improvements to the measure. Further future improvements to the SPM are being considered by a National Academies of Sciences panel.
Below are changes to the Supplemental Poverty Measure (SPM) methodology that were voted on during the September 2020 SPM interagency technical working group.
1. Resources
a. Move from a national value to state-varying values for the Special Supplemental Nutrition Program for Women, Infants and Children (WIC).
2. Threshold
a. Move the base of thresholds from 33rd percentile to a percentage of median with the percentage based on National Academy of Sciences (NAS) guidance or the share of median that gets closest to current SPM rate.
b. Expand estimation sample to all consumer units with children.
c. Lag Consumer Expenditure Survey (CE) data used to estimate the thresholds by one year.
d. Add imputed in-kind benefits to the thresholds.
e. Move telephone expenditures out of utilities (i.e. no longer geographically adjust this portion of the threshold).
f. Add home internet expenditures to thresholds.
g. Use a composite FCSU consumer price index as opposed to the All Items, All Urban index to adjust components.
Updates to Resources
Working Paper
Capping Nutritional Assistance in the Supplemental Poverty Measure
This paper develops a methodology and investigates the potential impact of capping nutritional assistance benefits in the estimation of the SPM.
Working Paper
Impact of Using State Average WIC Values in the SPM
Using data from the 2018 CPS ASEC, this paper analyzes the impact of using state-varying WIC values instead of national WIC values to estimate SPM rates.
Working Paper
Potential Improvements to the SPM for 2021: Resources
This presentation gives an overview of potential changes to SPM resources under consideration for 2021.
Working Paper
Improving Estimation of Nutritional Assistance Programs in the SPM
This presentation gives an overview of potential changes to nutritional assistance programs in the SPM under consideration for 2021.
Updates to Geographic Adjustments
Working Paper
Supplemental Poverty Measure: Alternative Geographic Adjustments
This presentation gives an overview of potential changes to geographic adjustments in the SPM under consideration for 2021.
Working Paper
Incorporating Amenities into Geographic Adjustments of the SPM
Thresholds for the Supplemental Poverty Measure reflect differences in the cost of housing. This paper suggests an approach that takes into account amenities.
Working Paper
Geographic Adjustments with BEA RPPs vs. ACS Median Rents: An Update
This paper compares the results of two different adjustments to the Supplemental Poverty Measure thresholds.
Working Paper
Adjustments with Regional Price Parities vs. Median Rents from the ACS
The focus in this paper is to compare two types of geographic adjustments.
Related Information
WORKING PAPER
Supplemental Poverty Measures Working Papers by Topic
Page Last Revised - October 8, 2021
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