An Empirical Study on Using CPS and ACS Survey Data in Bivariate State Poverty Models

Written by:
RRS2007-18

Introduction

The Census Bureau’s Small Area Income and Poverty Estimates (SAIPE) program produces poverty estimates for various age groups for states, counties, and school districts. For states the age groups are 0-4, 5-17, 18-64, and 65+. Through 2006 the state estimates have come from a regression model with state random effects (Fay and Herriot 1979) applied to direct state estimates from the Current Population Survey (CPS) Annual Social and Economic Supplement (ASEC, formerly known as the CPS March income supplement). The models borrow information from regression variables related to poverty that are constructed from administrative records data and from poverty estimates from the previous decennial census. Estimates are identified by the “income year” (IY), which refers to the year for which income is reported in the ASEC. From IY 2000 on, the CPS ASEC sample size has been about 100,000 addresses. Further information is available on the SAIPE web site. For simplicity, in what follows we shorten references to “CPS ASEC” to just “CPS.”

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