Report
Poor Measurement: New Census Report on Measuring Poverty Raises Concerns
Key Findings
- The Census Bureau recently unveiled new alternative poverty measures “intended to provide a more complete measure of economic well-being.” The new poverty measures, which produce poverty rates as much as one-third below the official poverty rate, contain some features that have been characterized by poverty experts and past Census reports as flawed or incomplete.
- Unlike past Census reports on alternative measures of poverty, this report does not include a set of poverty measures that follow the recommendations of an expert panel of the National Academy of Sciences (NAS) and that are more complete than either the official poverty rate or the new measures. Poverty rates under the NAS measures are generally higher than the official poverty rate.
- The new measures are flawed (and biased downward) because, among other reasons, they do not account for families’ expenses for child care and medical care and attribute major new categories of income (such as potential income from home equity) to families without making the adjustments to the poverty threshold necessary to create a consistent measure of well-being.