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Where are the Poor? Do Prices Matter? Supplemental Poverty Measure: Geographic Adjustments
Where are the Poor? Do Prices Matter? Supplemental Poverty Measure: Geographic Adjustments
Motivation - Research Questions
The official poverty measure uses the same thresholds for all families in the United States, regardless of location.
The Supplemental Poverty Measure (SPM) adjusts the housing portion of the thresholds for differences in housing costs, using median rents for two bedroom units. Compared to official poverty estimates, the SPM poverty estimates: 1) Increase the share of the poor living in the West and Northeast relative to those living in the South and Midwest, and 2) Decrease the share of the poor living outside metropolitan statistical areas and increase the share living inside metropolitan statistical areas.
Question? What would happen if we were to adjust other portions of the thresholds? Specifically, what if we adjust the food portion of the threshold as well as the housing portion?
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Page Last Revised - October 8, 2021
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