Earnings Inadequacy across US Households: Probing an Alternative to Census Bureau Poverty Line Estimates

• In Event: 127 - Section on Inequality, Poverty and Mobility Roundtable Session (one-hour).
  In Paper Session: Table 16. Poverty I

Abstract

This paper develops US household poverty estimates through an assessment of the market costs of basic, wellbeing-essential goods and services, and gauging the degree to which households’ earnings on economic markets are sufficient to cover them. My results suggest that over one-third of US households were unable to sustain their access to basic necessities through markets in 2012. America’s market economy is not providing sufficient earning opportunities or a sufficiently affordable, abundant access to basic necessities to enable a large proportion of US households to secure basic needs. Public welfare programs channel a disproportionate amount of aid to the elderly, while support for households with children seems weaker.

Author

• Joseph Nathan Cohen, City University of New York-Queens College