[PEN-L:5176] U.S. Poverty Rate

[McClintockBrent%faculty%Carthage@xxxxxxxxxxxxxxxx]

Some more info. on defining and measuring poverty in the U.S.:

The New York Times reported on April 30, 1995, pp. 1 & 15 that the Panel on
Poverty and Family Assistance at the National Academy of Sciences was about
to recommend changes to the definition and measurement of poverty. The major
recommended change is to shift from a cash income before taxes basis to a
disposable income basis. The disposable income measure would include all cash
income + non-cash benefits less taxes, out-of-pocket medical expenses, child
care costs, a flat amount for work expenses and child support paid out of
payer's income.

In its report the Panel estimates the impact on the poverty rate of changing
the definition of poverty. For 1992 when the official poverty rate was 14.5
percent, the Panel estimated, after the definitional changes, at the lower
bound the rate would have been 15 to 16 percent but at the upper bound could
have been greater than 18 percent. In addition, the new measure would be
adjusted for geographical differences in housing costs, something the current
measurement does not do.

Hope this is of some interest to Doug Orr and others...

Cheers, Brent
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