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Poverty All Notes

Poverty All Notes - Poverty in the USA Format of Tests 1...

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Poverty in the USA Format of Tests: 1. Terms/concepts (10, 2 sentences) 2. True/false (10) 3. Essays (3) Essay Ideas: Week 3: should not say “blacks are more likely to be in poverty” just a statistic - the statistic is demoralizing and is reflective of the society situated Teen moms: poverty is because of their character before becoming mothers rather than becoming mothers Ways of being poor: 1. Resources: what is available Earnings, income, wealth 2. Needs: may differ 1960’s: 7 out of 10 expenditures to poverty: cash 2005: 8 out of 10 expenditures to poverty: in-kind Problems: 1. Different rates of living in different areas 2. Standards of poverty changed: most poor people now are like middle class three generations ago Measures of Income: Wages/salaries Self-employed/unincorporated businesses Rental income Capital gains Transfer payments Retirement income In-kind Fringe benefits (country club benefits) Unrealized income: not receiving directly, but will receive at a moment in time (contributions made by employer on behalf of employee whether or not employee is at moment in time to receive pension) Where We Get Info to Calculate Poverty Rates: 1. Current Population Survey: monthly survey of households, collect data about labor force data, collected from civilian (no armed forces) non-institutionalized population, March Monthly Survey for poverty calculation (60,000 households), state-based design: variation in what is asked in sampling procedure from state-to-state Sample pattern: a. In sample for 4 months b. Out of sample for 8 months c. In sample for 4 months
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Information obtained: -general information -labor force status -15 and older -don’t need to know specifics 2. Survey of Income and Program Participation: non-institutionalized population AND some members of armed forces, 15 and older Design: a. new sample every 4 years b. no overlap C. if inside sample, interviewed every 4 months for 4 years (12x) D. before 1996: 12,500/ after 1966: 37,000 Information obtained: -job particulars -public and private health insurance programs -individual benefits from 7 in-kind programs -tax payments -oversamples low-income households -don’t need to know specifics\ 3. Consumer Expenditure Survey: quarterly interview survey (6,800 consumer units), 2-week diary survey (6,000 consumer units) asked to record what they consume on daily business -demographic characteristic -work experience -job characteristics -14 and older Economy Food Plan: (1963) Minimal nutrition diet for family of 4 to sustain life ($2.74/day) Typical family spends 1/3 of income on food $2.74 * 365 = $1000 $1000 * 3 = $3000 Therefore, if pre-tax cash income below $3000, considered poor We now (2010) take that $3000 and adjust for inflation (CPI)=$22,000 Molly Orshansky, Department of Agriculture Recognized there are many different family units (not everyone is 2 adults, 2 children) Converted it to equivalent levels for 124 different family units referred to as Equivalent Scales Absolute Poverty Line Commonalities of Poverty 1. Absence of father 2. Adult(s) in household don’t work or at least, full-time Resources + in-kind/needs NAS (national association of science) Food
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Clothing
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