Poverty measures

Framework / Assessment
Summary

Poverty can be measured in a number of ways. The most common and less accurate is to just look at per capita income, however, this can miss the relationship between income and household expenses. Two ways of measuring poverty are: a. Official (US) Poverty Measure- the Census Bureau uses a set of income thresholds that vary by family size and composition to detect who is poor. If the total income for a family or an unrelated individual falls below the relevant poverty threshold, then the family or an unrelated individual is classified as being "below the poverty level." b. California Poverty Measure- tracks the full range of necessary expenditures, adjusts for geographic differences in housing costs, and includes food stamps and other non-cash benefits as resources available to poor families. This measure is an Average of the 33rd - 36th percentile of national expenditures on food, clothing, shelter, and utilities, based on five most recent years of the Consumer Expenditure survey, multiplied by 120% to account for other “key” spending. Thresholds are also adjusted for the regional cost of living.