Income and Poverty
Sidebar
Introduction
The Census Bureau publishes data on money income. Money income is defined as income received on a regular basis (exclusive of certain money receipts such as capital gains) before payments for personal income taxes, social security, union dues, medicare deductions, etc. Therefore, money income does not reflect the fact that some families receive part of their income in the form of noncash benefits, such as food stamps, health benefits, subsidized housing and goods produced and consumed on the farm.
To determine poverty status, the Census Bureau uses a set of money income thresholds that vary by family size and composition. If a family’s total income is less than the family’s threshold, then that family and every individual in it is considered in poverty. The official poverty thresholds do not vary geographically, but they are updated for inflation using Consumer Price Index. The official poverty definition uses money income before taxes and does not include capital gains or noncash benefits (such as public housing, Medicaid and food stamps).
There are several different sources of income and poverty data discussed here.
American Community Survey
The American Community Survey (ACS), a product of the U.S. Census Bureau, is an ongoing survey that collects information on the characteristics of the population. The data are available for small geographies and areas with small populations. Income topics included in the ACS are household and individual income, poverty status and rent and owner costs as a percentage of income.
Small Area Income and Poverty Estimates
The Census Bureau’s Small Area Income and Poverty Estimates (SAIPE) program produces annual estimates of median household income and poverty status for states, counties and school districts. SAIPE combines data from administrative records, postcensal population estimates and the decennial census with direct estimates from the American Community Survey to provide consistent and reliable single-year estimates.
These model-based, single-year estimates are more reflective of current conditions than multi-year survey estimates available through the American Community Survey.
Survey of Income and Program Participation
The Survey of Income and Program Participation (SIPP) is a household-based survey conducted by the U.S. Census Bureau. The main objective of the SIPP is to provide accurate and comprehensive information about the income and program participation of individuals and households in the United States. The survey’s mission is to provide a nationally representative sample for evaluating: 1) annual and sub-annual income dynamics; 2) movements into and out of government transfer programs; 3) family and social context of individuals and households; and 4) interactions among these items. A major use of the SIPP has been to evaluate the use of and eligibility for government programs and to analyze the impacts of modifications to those programs. SIPP is designed as a continuous series of national panals, with sample size ranging from approximately 14,000 to 52,000 interviewed households. The duration of each panel ranges from 2 ½ years to 4 years.
Data are released periodically in cross-sectional, topical module and longitudinal reports. Access SIPP data here.