TABLE 5-9 Effect of Individual Components of the Proposed Measure on Percentage Point Changes in the Official Poverty Rates, 1992

 

Marginal Percentage Point Change in the Poverty Ratea

Population Group

Housing Cost Index

Scale Economy Factor 0.75

Scale Economy Factor 0.65

In-Kind Benefits

Total Population

0.09

-0.73

-0.02

-1.65

Age

Children under 18

0.11

-0.33

-0.33

-1.79

Adults 65 and over

-0.03

-2.07

1.26

-2.15

Race and Ethnicity

White

0.01

-0.89

-0.03

-1.61

Black

0.07

-0.49

-0.06

-1.84

Hispanicb

1.12

-0.15

-0.19

-1.68

Family Size

One person

0.02

-3.99

-1.58

-1.47

Two persons

0.01

0.40

1.95

-1.42

Three or four persons

0.15

0.44

0.80

-1.92

Five or more persons

0.09

-0.28

-0.86

-1.60

Welfare or Work Status

Receiving AFDC or SSI

0.21

-0.40

-0.02

-2.50

One or more workers

0.03

-0.78

-0.34

-1.66

Without Health Insurance

0.04

-0.60

-0.25

-1.06

Region of Residence

Northeast

1.98

-0.95

0.04

-2.26

Midwest

-0.81

-0.95

-0.11

-1.66

South

-1.10

-0.56

0.16

-1.46

West

1.73

-0.69

-0.33

-1.52

NOTE: The poverty rates are for individuals: They are determined on the basis of comparing the income of their family (or one's own income if an unrelated individual) to the appropriate threshold.

very high. This occurs because welfare families benefit proportionately more than others from in-kind programs, including health insurance (as reflected in lower out-of-pocket medical care expenses) and are proportionately less adversely affected by taxes and work expenses. Conversely, the rate for working family members increases by a full 7-8 percentage points (on a standardized basis). Such families are proportionately more affected than others by subtracting out-of-pocket medical care costs, taxes, child care, and other work-related expenses.

The poverty rate for members of families without health insurance increases by 6 percentage points (on a standardized basis), mainly because there is a proportionately smaller effect for these families of adding values for in-kind benefits and a proportionately larger effect of subtracting out-of-pocket medi-



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