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Use of Labor Market Indicators in Small Area Poverty Models

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Use of Labor Market Indicators in Small Area Poverty Models

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Abstract

Use of Labor Market Indicators in Small Area Poverty Models
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Current production models of poverty and income utilized by the Census Bureau for the Small Area Income and Poverty Estimates (SAIPE) program do not utilize labor market indicators. The mismatch between the geographic definition of a labor market versus residential-based poverty is the primary impediment to their use . This paper will use data from the Local Employment Dynamics program at the Census Bureau to construct a residence-based indicator of employment. The indicator will then be included in county-level SAIPE poverty models to test its usefulness.

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