Experimental Poverty Measures Summary of a Workshop (2005) / Chapter Skim
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Pages 21-24
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21 6 Work-Related and Child Care Expenses The current official poverty measure does not explicitly take intoaccount people's work-related expenses, such as child care and com-muting costs. Since the thresholds were devised by multiplying the cost of a basic food plan by three to account for other expenses, it could be said, as with medical expenses, that the thresholds indirectly account for them.
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22 EXPERIMENTAL POVERTY MEASURES The NRC report recommended the following method of accounting for work-related expenses and child care. For families in which both parents work (or the single parent works)
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WORK-RELATED AND CHILD CARE EXPENSES 23 families who are able to meet their basic child care needs, since these families show up in the data as not having spent on (and thus not having a need for) child care.
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24 EXPERIMENTAL POVERTY MEASURES (Short et al., 1999) indicated that the overall poverty rate using the actual expense approach in 1997 was 15.4 percent, or about 0.5 percentage points lower than when using the expected expense approach (15.9 percent)
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