Measures of Poverty Poverty Thresholds and Guidelines
There are two official measures of poverty issued annually by the
federal government:
Census Bureau poverty thresholds
Department of Health and Human Services poverty guidelines
Poverty Thresholds
Both of the official poverty measures are intended to
identify the level of income necessary to meet basic needs.
The Census Bureau’s poverty thresholds are intended for
use as a statistical yardstick. The Bureau calculates
official poverty thresholds that vary by family size and
composition (family members’ age) using money income before taxes
not including capital gains or noncash benefits (such as public
housing, Medicaid, and food stamps).
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 are updated annually for
inflation using Consumer Price Index (CPI-U).
Frequency and Timespan: Annual data for 1959 to the present
Geographic level of coverage: National; some regional data
Source:
U.S. Census Bureau. How the Census Bureau Measures Poverty.
(PDF) Accessed
2/13/2012
Poverty Guidelines
The poverty guidelines are issued annually by the
Department of Health and Human Services. They are a
simplification of the official poverty thresholds calculated by
the Census Bureau and are intended for administrative purposes,
primarily determining financial eligibility for certain federal
assistance programs.
Frequency and Timespan: Annual data, from 1959 to the present
Geographic level of coverage: one set of guidelines for the the
48 contiguous states; separate guidelines for Alaska,
and Hawaii
Source:
U.S. Dept. of Health and Human Services. Assistant Secretary for
Planning and Evaluation. Frequently Asked Questions Related
to Poverty Guidelines and Poverty. (PDF ) Accessed
2/13/2012
Each year, the U.S. Census Bureau counts people in poverty with
two measures. Both the official and supplemental poverty measures
are based on estimates of the level of income needed to cover
basic needs. Those who live in households with earnings below
those incomes are considered to be in poverty.
Poverty thresholds are the income dollar amounts used by the U.S.
Census Bureau solely as a statistical yardstick to determine a
household’s poverty status. They are issued each year in
September and are the basis for determining the national poverty
rate.
The official poverty statistics, which have been in use since the
1960s, calculate poverty status by comparing a family’s or
an individual’s cash income to their poverty threshold.
