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Waging War on Poverty: Historical Trends in Poverty Using the Supplemental Poverty Measure

Author

Listed:
  • Liana Fox
  • Irwin Garfinkel
  • Neeraj Kaushal
  • Jane Waldfogel
  • Christopher Wimer

Abstract

Using data from the Consumer Expenditure Survey and the March Current Population Survey, we calculate historical poverty estimates based on the new Supplemental Poverty Measure (SPM) from 1967 to 2012. During this period, poverty as officially measured has stagnated. However, the official poverty measure (OPM) does not account for the effect of near-cash transfers on the financial resources available to families, an important omission since such transfers have become an increasingly important part of government anti-poverty policy. Applying the SPM, which does count such transfers, we find that historical trends in poverty have been more favorable than the OPM suggests and that government policies have played an important and growing role in reducing poverty --- a role that is not evident when the OPM is used to assess poverty. We also find that government programs have played a particularly important role in alleviating child poverty and deep poverty, especially during economic downturns.

Suggested Citation

  • Liana Fox & Irwin Garfinkel & Neeraj Kaushal & Jane Waldfogel & Christopher Wimer, 2014. "Waging War on Poverty: Historical Trends in Poverty Using the Supplemental Poverty Measure," NBER Working Papers 19789, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:19789
    Note: AG CH EFG PE
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    Cited by:

    1. Parolin, Zachary, 2019. "Temporary Assistance for Needy Families and the Black-White Child Poverty Gap in the United States," OSF Preprints cv4wg, Center for Open Science.
    2. Zachary Parolin, 2019. "The Effect of Benefit Underreporting on Estimates of Poverty in the United States," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 869-898, July.
    3. Angela Rachidi & Shijie Jin, 2017. "The reach of the cash-based safety net for poor families with children in America," AEI Economic Perspectives, American Enterprise Institute, February.
    4. Parolin, Zachary & Brady, David, 2018. "Extreme Child Poverty and the Role of Social Policy in the United States," SocArXiv u5ecn, Center for Open Science.
    5. Zachary Parolin, 2018. "Race, Social Assistance & the Risk of Child Poverty across the 50 United States," Working Papers 1804, Herman Deleeck Centre for Social Policy, University of Antwerp.
    6. Zachary Parolin, 2017. "Applying Augmented Survey Data to Produce More Accurate, Precise, and Internationally Comparable Estimates of Poverty within the 50 United States," LIS Working papers 696, LIS Cross-National Data Center in Luxembourg.
    7. Arindrajit Dube, 2019. "Minimum Wages and the Distribution of Family Incomes," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 268-304, October.
    8. Sophie Mitra & Debra Brucker, 2019. "Monitoring multidimensional poverty in the United States," Economics Bulletin, AccessEcon, vol. 39(2), pages 1272-1293.

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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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