Comparison of poverty measures
|Official poverty measure||Supplemental Poverty Measure|
|Threshold||Equal to three times the cost of “Economy Food Plan”||Equal to the 33rd percentile of expenditures on food, clothing, shelter, and utilities of consumer units with exactly two children, multiplied by 1.2|
|Adjusted annually by change in the Consumer Price Index||Adjusted annually by the five-year moving average of expenditures on food, clothing, shelter, and utilities|
|No geographic adjustment||Geographic adjustments for differences in housing costs|
|Resources included as income||Total family pretax cash income||Total family after-tax income (including credits such as the Earned Income Tax Credit)|
|Includes value of near-cash benefits, such as SNAP, National School Lunch Program, WIC, housing subsidies, and LIHEAP|
|Subtracts work-related expenses, such as child care and transportation costs|
|Subtracts medical out-of-pocket expenses and child support paid|
Note: SNAP is the Supplemental Nutrition Assistance Program; WIC is the Special Supplemental Nutrition Program for Women, Infants, and Children; and LIHEAP is the Low Income Home Energy Assistance Program.
Source: Authors' analysis of Short (2011)
Documentation and methodology
Table is adapted from Short (2011), “Resource Estimates” table.