Changing the Way the United States Measures Income and Poverty: A Progress Report

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Abstract

The United States Census Bureau has been compiling income estimates annually since 1947, while formal measurement of poverty in the United States is less than three decades old. When considering the adequacy of the official poverty thresholds, it is critical to realize that one cannot separate the issue of income measurement from poverty definition. When one defines the level of resources needed to be non-poor, one must also determine which resources are to be counted. Therefore, the discussion in this paper covers both income measurement and poverty definition issues. This paper discusses alternative definitions of income and considerations in measuring poverty. The paper concludes with a review of Census Bureau poverty research.

Page Last Revised - October 8, 2021