Welcome to Scribd. Sign in or start your free trial to enjoy unlimited e-books, audiobooks & documents.Find out more
P. 1
A Modern Framework for measuring poverty and basic Economic Security

A Modern Framework for measuring poverty and basic Economic Security

Ratings: (0)|Views: 145|Likes:
Details how the dominant framework for defining poverty has been defined down over time, analyzes the Obama Administration’s Proposed improvements to the current poverty measures, and then recommends a new framework more reflective of contemporary mainstream living standards.
Details how the dominant framework for defining poverty has been defined down over time, analyzes the Obama Administration’s Proposed improvements to the current poverty measures, and then recommends a new framework more reflective of contemporary mainstream living standards.

More info:

Published by: Center for Economic and Policy Research on Apr 27, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

01/25/2013

pdf

text

original

 
 
A Modern Framework forMeasuring Poverty and BasicEconomic Security
Shawn Fremstad
April 2010
Center for Economic and Policy Research
1611 Connecticut Avenue, NW, Suite 400Washington, D.C. 20009202-293-5380www.cepr.net
 
CEPR A Modern Framework for Measuring Poverty and Basic Economic Security
i
Contents
List of Recommendations.................................................................................................................................1Introduction and Recommendations..............................................................................................................3 The Too-Low and Too-Narrow Problems with the Poverty Line........................................................5Does the Proposed Supplemental Income Poverty Measure (SIPM) Adequately Address theseProblems?.......................................................................................................................................................6Recommendations.........................................................................................................................................7Measuring Poverty: The Current Measure and the Proposed Supplemental Income Poverty Measure............................................................................................................................................................................17 The Official Poverty Measure...................................................................................................................17 The National Academy of Sciences’ 1995 Recommendations and the Administration’s ProposedSupplemental Income Poverty Measure (SIPM)....................................................................................19 The McDermott/Dodd Legislation..........................................................................................................23 The “Too Low” Problem...............................................................................................................................25How a Too-Low Measure Produces a Picture of Poverty that is Out of Focus...............................27Income Poverty Thresholds as Signals to Policymakers and the Public.............................................30Does the SIPM Address the Too-Low Problem?..................................................................................31Should We Expect the SIPM Thresholds to Increase Over Time at a Greater Rate than theCurrent Poverty Thresholds?.....................................................................................................................33 The “Too Narrow” Problem.........................................................................................................................34Disability.......................................................................................................................................................35Health Insurance.........................................................................................................................................37 Assets and Debt...........................................................................................................................................37Geographic Adjustment for Housing Costs: The Impact on Poor States and Implications for the Accuracy of the SIPM.....................................................................................................................................38 A Better Alternative: A New National Statistical Framework for Measuring Poverty and BasicEconomic Security...........................................................................................................................................45 Addressing the Too-Low Problem...........................................................................................................45 Addressing the Too-Narrow Problem.....................................................................................................47 A Deprivation Index or Multiple, Separate Indicators?........................................................................49Role of the SIPM and Other Extremely Low Income Measures.........................................................50Should We Adopt the NAS Measure Now and Delay Real Modernization of the Poverty Measurefor Further Study?............................................................................................................................................51Conclusion........................................................................................................................................................52
 
CEPR A Modern Framework for Measuring Poverty and Basic Economic Security
ii
 Appendix...........................................................................................................................................................53Bibliography......................................................................................................................................................54
 About the Author
Shawn Fremstad is Director of the Inclusive and Sustainable Economy Initiative at the Center forEconomic and Policy Research in Washington, D.C.
 Acknowledgments
 The author thanks Dean Baker, Annette Case, Indivar Dutta-Gupta, Shawn McMahon, ZoëNeuberger, and John Quinterno for their helpful comments and critiques of drafts of this paper. I’vealso benefited from discussions and correspondence with Melissa Boteach, Heather Boushey,Desmond Brown, Tim Casey, Nancy Cauthen, Reid Cramer, Aaron Graham, Doug Hall, Jeff Lubell,Diana Pearce, Danilo Pelletiere, Arloc Sherman, Keith Wardrip, and Michael Wiseman, and from aDecember 2010 round-table meeting on poverty and economic security measurement sponsored by Strategies to Eliminate Poverty. Finally, CEPR wishes to thank the Annie E. Casey Foundation forfinancial support. The responsibility for any errors of judgment or fact rests solely on the author.

Activity (6)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Amin Sudarsono liked this
Josh Queyquep liked this
freebyb liked this
faruna2003 liked this

You're Reading a Free Preview

Download
scribd