An Updated Measure of Poverty: (Re)Drawing the Line (2023)
Chapter: Appendix 6A: SPM/PPM Threshold Components - Availability in the CE Interview Survey/Taken from Other Sources
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6 Data and Statistical Issues
Appendix 6A
Next Chapter: Appendix 6B: SPM/PPM Resource Components - Availability in the CPS-ASEC and ACS
Suggested Citation:
"Appendix 6A: SPM/PPM Threshold Components - Availability in the CE Interview Survey/Taken from Other Sources." National Academies of Sciences, Engineering, and Medicine. 2023. An Updated Measure of Poverty: (Re)Drawing the Line. Washington, DC: The National Academies Press.
doi: 10.17226/26825.
Appendix 6A
SPM/PPM Threshold Components—Availability in the CE Interview Survey/Taken from Other Sources
| Component | Source |
|---|---|
| REQUIRED FOR CURRENT SPM | |
| CONSUMER UNIT (CU) COMPOSITION | Required to obtain estimation sample |
| Presence of adults and children | CE estimation sample includes all CUs with children |
| BASIC BUNDLE (FCSUti) | FCSUti estimated at 83% of the 47th–53rd percentiles of expenditures for basic bundle for reference CU, then S + U estimated separately by housing tenure (rent, own without a mortgage, own with a mortgage); replaces the SU component in FCSUti |
| Food purchased with money income | CE includes food at home and away from home |
| Food obtained with in-kind benefits | CE used for SNAP; BLS imputes WIC and the National School Lunch Program |
| Clothing | CE |
| Shelter (including obtained with subsidies) | CE used for housing tenure, rent, mortgage payment, property taxes, property insurance, maintenance; BLS imputes rental assistance |
| Utilities (including obtained with subsidies) | CE, BLS imputes Low Income Home Energy Assistance Program [LIHEAP] |
| Telephone | CE |
| Internet | CE |
| MULTIPLIER | 1.2 times basic bundle to account for other necessary expenditures (e.g., nonwork-related transportation, personal care, household supplies) |
| ADJUSTMENTS | Equivalence scale applied based on number of adults and children; housing component (by tenure) adjusted geographically by the ratio of 5-year ACS tabulations of median rent and utilities for 2-bedroom units with complete kitchen and plumbing facilities in a state or metropolitan area to the U.S. median. |
| FINAL THRESHOLDS | Basic bundle + multiplier, adjusted for family composition and geographic shelter cost differences (see “Adjustments”) |
Suggested Citation:
"Appendix 6A: SPM/PPM Threshold Components - Availability in the CE Interview Survey/Taken from Other Sources." National Academies of Sciences, Engineering, and Medicine. 2023. An Updated Measure of Poverty: (Re)Drawing the Line. Washington, DC: The National Academies Press.
doi: 10.17226/26825.
| Component | Source |
|---|---|
| REQUIRED FOR PANEL’S RECOMMENDED PPM | |
| CONSUMER UNIT COMPOSITION | See above |
| REVISED BASIC BUNDLE (FCti) | FCti estimated at 83% of 47th–53rd percentiles of expenditures for revised basic bundle for reference consumer unit |
| Food | CE used (see above re: imputation of in-kind food benefits) |
| Clothing | CE |
| Telephone | CE |
| Internet | CE |
| MULTIPLIER | The current 1.2 multiplier will need to be updated to reflect the revised basic bundle accounting for other necessary expenditures |
| ADJUSTMENT | Equivalence scale applied based on number of adults and children |
| NEW/REVISED THRESHOLD COMPONENTS | Taken from other sources (see below) and added to revised basic bundle threshold |
| HEALTH INSURANCE | Sum of health insurance needs for health insurance units in CU (e.g., parents and children one unit, grandparent a second unit): for people under 65 and over 64 but not on Medicare, need is benchmark ACA plan—second-lowest-cost Silver plan in the health insurance Marketplace in an individual’s geographic area; for Medicare recipients, need is full cost of least expensive Medicare Advantage plan with prescription drugs (premium subsidies added to resources; premium and other MOOP costs subtracted up to MOOP cap in benchmark plan) |
| HOUSING (including utilities) | HUD FMRs (includes utilities) for applicable number of adults and children (based on number of bedrooms) for applicable metropolitan area/nonmetropolitan county (housing subsidies added to resources for renters; implicit rent net of expenses added to resources for owners) |
| FINAL THRESHOLDS | For applicable CU composition/location, revised basic bundle + multiplier + health insurance + housing/utilities |
| FUTURE ADDITION—CHILDCARE | The PPM extends childcare out-of-pocket costs that are subtracted from resources to parents who are in school or disabled; in a future revision, the panel recommends that childcare needs be added to the thresholds in a similar manner to health insurance and childcare subsidies be added to resources |
SOURCE: For current SPM methodology, see www.bls.gov/pir/spmhome.htm.
Suggested Citation:
"Appendix 6A: SPM/PPM Threshold Components - Availability in the CE Interview Survey/Taken from Other Sources." National Academies of Sciences, Engineering, and Medicine. 2023. An Updated Measure of Poverty: (Re)Drawing the Line. Washington, DC: The National Academies Press.
doi: 10.17226/26825.
Suggested Citation:
"Appendix 6A: SPM/PPM Threshold Components - Availability in the CE Interview Survey/Taken from Other Sources." National Academies of Sciences, Engineering, and Medicine. 2023. An Updated Measure of Poverty: (Re)Drawing the Line. Washington, DC: The National Academies Press.
doi: 10.17226/26825.
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