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The Incidence of Economic Stress in Affluent Areas

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  • Leonard Gaines
  • Pearl M. Kamer

Abstract

. Several governmental programs attempt to relieve economic stress for given segments of the population. Their success is often contingent upon how accurately economic distress in given areas can be identified and measured. The indicator most commonly used is the poverty rate or a related measure, such as the proportion of persons with incomes below 150% of the designated poverty threshold. However, these poverty thresholds are determined nationally and thus fail to take account of local income levels or variations in living costs. Nationally determined poverty thresholds obscure the existence of economic distress in affluent areas. This paper explores an alternate methodology that relates household income at the census tract level to county median household income in order to identify areas of significant poverty. The findings are then compared with official poverty statistics. The analysis is performed for Nassauand Suffolk Counties, two affluent suburban counties located on Long Island, adjacent to New York City. The data used came from the 1990 decennial census.

Suggested Citation

  • Leonard Gaines & Pearl M. Kamer, 1994. "The Incidence of Economic Stress in Affluent Areas," American Journal of Economics and Sociology, Wiley Blackwell, vol. 53(2), pages 175-185, April.
    • Handle: RePEc:bla:ajecsc:v:53:y:1994:i:2:p:175-185
    DOI: 10.1111/j.1536-7150.1994.tb02584.x
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    References listed on IDEAS

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    1. Paul Johnson & Graham Stark, 1991. "The effects of a minimum wage on family incomes," Fiscal Studies, Institute for Fiscal Studies, vol. 12(3), pages 88-93, August.
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    3. Slesnick, Daniel T, 1993. "Gaining Ground: Poverty in the Postwar United States," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 1-38, February.
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