Income, Poverty, and

Health Insurance Coverage in

the United States: 2009 Issued September 2010

P60-238 63,594

1.1

**,*** **,***

By

1.4 13.2

Curre n t Population Reports Carmen DeNavas-26,160 64,575

Wa l t

1.6 17.1 1.9 * Bernadette D. Proctor

12.6 o0.7 * mer

C n su Income 41,530 26,691

0.6 Jessica C . S m it h

59,149 41,259 26,891

1.1 9.2 1.2 0.9

1.0 7.5 1.1 1.0 14.3 59,925 40,898 27,013

7.6 1.3 * 1.1 11.8 1.2

18,979 57,555 40,207 27,612

16.7 1.9 * 1.5 9.2 0.7 9.0

34,421 19,890 57,783 38,789 27,779

11.9 0.9 0.7 10.0 1.0 10.1 1.2

35,316 20,538 58,155 39,792

1.5 1.2 12.7 1.2 11.4 1.3 13.1

37,335 21,977 58,865 39,843

1.4 1.2 9.0 1.0 9.2 1.1 9.6

37,773 22,425 59,369 39,143

1.6 * 1.2 13.2 1.3 12.7 1.4 13.8

0.9 0.7 15.2 0.8 15.4 0.9 15.2 37,913 22,561 59,506

0.9 8.0 1.0 6.7 1.0 9.1

39,923 23,100 57,861

0.9 9.8 1.1 9.8 1.2 9.9

41,195 23,330 56,633

1.1 8.0 1.0 8.1 1.1 8.1

39,750 23,355 58,754

1.2 10.4 1.1 10.2 1.2 10.8

39,479 23,221

15.6 1.3 15.2 1.4 15.6

8.6 0.9 8.9 1.1 8.6

38,789 27,779 71,616 1.2 1.0 18.8 1.7

39,792 27,798 69,858 1.7 1.3 14.1 0.7 14.0

1.9 * 1.4 12.9 1.0 13.1

39,843 28,203 70,785

0.7 * 0.6 12.4 1.2 11.7

39,143 27,995 71,520

1.2 0.9 10.8 0.8 11.0

59,506 38,900 27,995 71,968

1.1 1.0 14.3 1.3 13.9 1.4

57,861 38,768 27,691 71,428 1.3 * 1.1 11.8 1.2 11.7 1.3

56,633 38,531 28,421 73,762 1.9 * 1.5 9.2 0.7 9.0 0.7

0.9 0.7 10.0 1.0 10.1 1.2

58,754 39,521 29,309 74,161

1.5 1.2 12.7 1.2 11.4 1.3 13.1

23,221 58,818 40,906 29,931 73,170

1.2 9.0 1.0 9.2 1.1 9.6

23,702 60,193 41,249 29,829

13.2 1.3 12.7 1.4 13.8

23,708 58,922 40,861

0.8 15.4 0.9 15.2 1.0

24,661 59,441 40,843 6.7 1.0 9.1 1.3

41,021 24,474 59,663 1.2 9.9 1.3

8.1 1.2

40,412 24,312

1.4

40,213 23,820

1.6

39,498

USCENSUSBUREAU

U.S. Department of Commerce

Economics and Statistics Administration

U .S. CENSUS BUREAU

Helping You Make Informed Decisions

Acknowledgments

Carmen DeNavas-Walt, with the assistance of Margaret E.

Richardson and Melissa A. Stringfellow, prepared the income

section of this report under the direction of Edward J. Welniak, Jr.,

Chief of the Income Statistics Branch. Bernadette D. Proctor pre-

pared the poverty section under the direction of Trudi J. Renwick,

Chief of the Poverty Statistics Branch. Jessica C. Smith prepared

the health insurance coverage section under the direction of Brett

O Hara, Chief of the Health and Disability Statistics Branch.

Charles T. Nelson, Assistant Division Chief for Economic

Characteristics, and Jennifer Cheeseman Day, Assistant Division

Chief for Employment Characteristics, both of the Housing and

Household Economic Statistics Division, provided overall direction.

Adelle D. Berlinger, George M. Mitcham, Tim J. Marshall, and

Gregory D. Weyland, Demographic Surveys Division, processed

the Current Population Survey 2010 Annual Social and Economic

Supplement file. Donna K. Benton, Kirk E. Davis, Thy K. Le, and

Chandararith R. Phe, all of the Survey Processing Branch, pro-

grammed and produced the detailed and publication tables.

Danielle N. Castelo, Rebecca A. Hoop, and Matthew R.

Herbstritt, under the supervision of David V. Hornick and

Kimball T. Jonas, all of the Demographic Statistical Methods

Division, conducted sample review. Thomas F. Moore, Chief of the

Health Surveys and Supplements Branch, provided overall direction.

Lisa Clement, Tim J. Marshall, Michelle Wiland, and Lisa

Paska, Demographic Surveys Division, and Roberto Picha and

Agatha Jung,Technologies Management Office, prepared and pro-

grammed the computer-assisted interviewing instrument used to

conduct the Annual Social and Economic Supplement.

Additional people within the U.S. Census Bureau also made signifi-

cant contributions to the preparation of this report. Barton Baker,

Ashley Edwards, Suzanne Macartney, Laryssa Mykyta, Ashley

Provencher, Jessica L. Semega, Bruce H. Webster, Jr., John

Hisnanick, Len Norry, and Judith Waldrop reviewed the contents.

Census Bureau field representatives and telephone interviewers

collected the data. Without their dedication, the preparation of this

report or any report from the Current Population Survey would be

impossible.

Linda Chen, Jamie A. Stark, and Donald J. Meyd, of the

Administrative and Customer Services Division, Francis Grailand

Hall, Chief, provided publications and printing management, graph-

ics design and composition, and editorial review for print and elec-

tronic media. General direction and production management were

provided by Claudette E. Bennett, Assistant Division Chief.

Income, Poverty, and Health

Insurance Coverage in the

United States: 2009 Issued September 2010

P60-238

U.S. Department of Commerce

Gary Locke,

Secretary

Vacant,

Deputy Secretary

Economics and Statistics Administration

Rebecca M. Blank,

Under Secretary for Economic Affairs

U.S. CENSUS BUREAU

Robert M. Groves,

Director

Suggested Citation

DeNavas-Walt, Carmen, Bernadette D.

Proctor, and Jessica C. Smith,

U.S. Census Bureau,

Current Population Reports, P60-238,

Income, Poverty, and Health Insurance

Coverage in the United States: 2009,

U.S. Government Printing Office,

Washington, DC,

2010. ECONOMICS

AND STATISTICS

ADMINISTRATION

Economics and Statistics

Administration

Rebecca M. Blank,

Under Secretary for Economic Affairs

U.S. CENSUS BUREAU

Robert M. Groves,

Director

Thomas L. Mesenbourg,

Deputy Director and Chief Operating Officer

Howard Hogan,

Associate Director for Demographic Programs

David S. Johnson,

Chief, Housing and Household Economic Statistics Division

Contents

TEXT

Income, Poverty, and Health Insurance Coverage

in the United States: 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Source of Estimates and Statistical Accuracy . . . . . . . . . . . . . . 1

Supplemental Poverty Measure. . . . . . . . . . . . . . . . . . . . . . . . . 2

State and Local Estimates of Income, Poverty, and

Health Insurance . . . . . . . . . . . . . . . . . . . . . . . . . 3

Dynamics of Economic Well-Being . . . . . . . . . . . . . . . 4

Income in the United States . . . . . . . . . . . . . . . . . . . . . . . . . .4

Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Household Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Race and Hispanic Origin . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Age of Householder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Nativity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Income Inequality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Equivalence-Adjusted Income Inequality. . . . . . . . . . . . . . . . . .9

Work Experience and Earnings . . . . . . . . . . . . . . . . . . . . . . . . 11

Per Capita Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Poverty in the United States . . . . . . . . . . . . . . . . . . . . . . . . . 14

Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Impact of the 2007 Economic Downturn . . . . . . . . . . . . . . . . 14

Race and Hispanic Origin . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Nativity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Work Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Depth of Poverty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Ratio of Income to Poverty . . . . . . . . . . . . . . . . . . . . . . . 19

Income Deficit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Alternative/Experimental Poverty Measures . . . . . . . . . . . . . . 20

National Academy of Sciences (NAS)-Based Measures and

Estimates of the Effect of Benefits and Taxes . . . . . . . . . 20

CPS Table Creator II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Health Insurance Coverage in the United States . . . . . . . . 22

Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

What Is Health Insurance Coverage?. . . . . . . . . . . . . . . . . . . . 22

Type of Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Race and Hispanic Origin . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Age . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Nativity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Economic Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Work Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Children s Health Insurance Coverage . . . . . . . . . . . . . . . . . . 27

Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Additional Data and Contacts. . . . . . . . . . . . . . . . . . . . . . . . . 29

Income, Poverty, and Health Insurance Coverage in the United States: 2009 iii

U.S. Census Bureau

TEXT TABLES

1. Income and Earnings Summary Measures by Selected Characteristics:

2008 and 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

2. Change in Real Median Income and Earnings, Number of Workers, and Percentage of

Full-Time, Year-Round Workers During Income Years Surrounding Recessions by Sex:

1969 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3. Income Distribution Measures Using Money Income and Equivalence-Adjusted Income:

2008 and 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

4. People and Families in Poverty by Selected Characteristics: 2008 and 2009 . . . . . . . . . . .15

5. Change in Poverty During Income Years Surrounding Recessions: 1969 to 2009 . . . . . . . .16

6. People With Income Below Specified Ratios of Their Poverty Thresholds by

Selected Characteristics: 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

7. Income Deficit or Surplus of Families and Unrelated Individuals by Poverty Status:

2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

8. People Without Health Insurance Coverage by Selected Characteristics:

2008 and 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

9. People Without Health Insurance Coverage by Selected Characteristics:

2007 and 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

FIGURES

1. Real Median Household Income by Race and Hispanic Origin: 1967 to 2009 . . . . . . . . . . . .6

2. Female-to-Male Earnings Ratio and Median Earnings of Full-Time, Year-Round

Workers 15 Years and Older by Sex: 1960 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

3. Total and Full-Time, Year-Round Workers With Earnings by Sex: 1967 to 2009 . . . . . . . . . .13

4. Number in Poverty and Poverty Rate: 1959 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

5. Poverty Rates by Age: 1959 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

6. Demographic Makeup of the Population at Varying Degrees of Poverty: 2009 . . . . . . . . . .19

7. Number Uninsured and Uninsured Rate: 1987 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . .24

8. Coverage by Type of Health Insurance: 2008 and 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . .25

9. Uninsured Children by Poverty Status, Household Income, Age, Race and Hispanic

Origin, and Nativity: 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

iv Income, Poverty, and Health Insurance Coverage in the United States: 2009 U.S. Census Bureau

APPENDIXES

Appendix A. Estimates of Income 31

How Income Is Measured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

Recessions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

Annual Average Consumer Price Index Research Series (CPI-U-RS) Using Current Methods

All Items: 1947 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

Cost-of-Living Adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

Appendix B. Estimates of Poverty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55

How Poverty Is Calculated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55

Poverty Thresholds for 2009 by Size of Family and Number of Related Children

Under 18 Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55

Weighted Average Poverty Thresholds in 2009 by Size of Family. . . . . . . . . . . . . . . . . . . . . . . . .55

Appendix C. Estimates of Health Insurance Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Quality of Health Insurance Coverage Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69

National surveys and health insurance coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69

Reporting of coverage through major federal health insurance programs . . . . . . . . . . . . . . . .69

APPENDIX TABLES

A-1. Households by Total Money Income, Race, and Hispanic Origin of

Householder: 1967 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33

A-2. Selected Measures of Household Income Dispersion: 1967 to 2009 . . . . . . . . . . . . . . . . . . . . .40

A-3. Selected Measures of Equivalence-Adjusted Income Dispersion: 1967 to 2009 . . . . . . . . . . . .45

A-4. Number and Real Median Earnings of Total Workers and Full-Time, Year-Round Workers

by Sex and Female-to-Male Earnings Ratio: 1960 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . .50

A-5. Number of Workers With Earnings and Median Earnings by Work Experience, Sex, and

Selected Characteristics: 2002 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51

B-1. Poverty Status of People by Family Relationship, Race, and Hispanic Origin:

1959 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56

B-2. Poverty Status of People by Age, Race, and Hispanic Origin: 1959 to 2009 . . . . . . . . . . . . . . .62

B-3. Poverty Status of Families, by Type of Family: 1959 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . .68

C-1. Health Insurance Coverage: 1987 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71

C-2. Health Insurance Coverage by Race and Hispanic Origin: 1999 to 2009 . . . . . . . . . . . . . . . . .72

C-3. Health Insurance Coverage by Age: 1999 to 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76

Income, Poverty, and Health Insurance Coverage in the United States: 2009 v

U.S. Census Bureau

Income, Poverty, and

Health Insurance Coverage in

the United States: 2009

Introduction

Source of Estimates and Statistical Accuracy

This report presents data on income,

The data in this report are from the 2010 Current Population Survey

poverty, and health insurance cover-

Annual Social and Economic Supplement (CPS ASEC) and were collected in

age in the United States based on

the 50 states and the District of Columbia and do not represent residents

information collected in the 2010

of Puerto Rico and U.S. island areas.* It is based on a sample of about

and earlier Current Population

100,000 addresses. The estimates in this report are controlled to inde-

Survey Annual Social and Economic

pendent national population estimates by age, sex, race, and Hispanic

Supplements (CPS ASEC) conducted by

origin for March 2010. The population controls used to prepare estimates

the U.S. Census Bureau.

for 1999 to 2009 were based on the results from Census 2000 and are

Summary of findings: updated annually using administrative records for such things as births,

deaths, emigration, and immigration.

The median household income in

2009 was not statistically differ- The CPS is a household survey primarily used to collect employment data.

ent from the 2008 median in real The sample universe for the basic CPS consists of the resident civilian

terms.1 noninstitutionalized population of the United States. People in institu-

tions, such as prisons, long-term care hospitals, and nursing homes, are

The poverty rate increased between

not eligible to be interviewed in the CPS. Students living in dormitories are

2008 and 2009.

only included in the estimates if information about them is reported in an

The uninsured rate and number of interview at their parents home. The sample universe for the CPS ASEC is

people without health insurance slightly larger than that of the basic CPS since it includes military person-

increased between 2008 and 2009. nel who live in a household with at least one other civilian adult, regard-

less of whether they live off post or on post. All other Armed Forces are

These results were not uniform across

excluded. For further documentation about the CPS ASEC, see

groups. For example, between 2008

.

and 2009, real median household

income declined for non-Hispanic Most of the data from the CPS ASEC were collected in March (with some

Whites and Blacks, while the changes data collected in February and April). The estimates in this report (which

for Asians and Hispanics were not may be shown in text, figures, and tables) are based on responses from

a sample of the population and may differ from actual values because

of sampling variability or other factors. As a result, apparent differences

All income values are adjusted to reflect

1

2009 dollars. Real refers to income after adjust-

between the estimates for two or more groups may not be statistically

ing for inflation. The adjustment is based on

significant. All comparative statements have undergone statistical testing

percentage changes in prices between 2009 and

earlier years and is computed by dividing the

and are significant at the 90 percent confidence level unless otherwise

annual average Consumer Price Index Research

noted. Further information about the source and accuracy of the estimates

Series (CPI-U-RS) for 2009 by the annual average

for earlier years. The CPI-U-RS values for

is available at .

1947 to 2009 are available in Appendix A and

on the Internet at . Consumer prices between Mariana Islands, and the Virgin Islands of the United States.

2008 and 2009 fell by 0.4 percent.

Income, Poverty, and Health Insurance Coverage in the United States: 2009 1

U.S. Census Bureau

statistically significant.2 The pov- Asians were not statistically signifi- including full-time, year-round work-

erty rate increased for non-Hispanic cant. These results are discussed in ers; families in poverty; and health

Whites, Blacks, and Hispanics, while more detail in the three main sec- insurance coverage of children.

the change for Asians was not sta- tions of this report income, poverty,

The income and poverty estimates

tistically significant. Additionally, for and health insurance coverage. Each

shown in this report are based solely

health insurance, the uninsured rate section presents estimates by charac-

on money income before taxes and do

and number of uninsured increased teristics such as race, Hispanic origin,

not include the value of noncash ben-

for non-Hispanic Whites, Blacks, and nativity, and region. Other topics

efits, such as nutritional assistance,

Hispanics, while the changes for covered are earnings of workers,

Federal surveys now give respondents the

2

Supplemental Poverty Measure

option of reporting more than one race. There-

fore, two basic ways of defining a race group are

possible. A group such as Asian may be defined On March 2, 2010, the Interagency Technical Working Group (which

as those who reported Asian and no other race

included representatives from the Bureau of Labor Statistics [BLS], U.S.

(the race-alone or single-race concept) or as

those who reported Asian regardless of whether Census Bureau, Economics and Statistics Administration, Council of

they also reported another race (the race-alone-

Economic Advisers, U.S. Department of Health and Human Services, and

or-in-combination concept). The body of this

report (text, figures, and tables) shows data Office of Management and Budget [OMB]) issued a series of suggestions to

using the first approach (race alone). The appen-

the Census Bureau and BLS on how to develop the Supplemental Poverty

dix tables show data using both approaches.

Use of the single-race population does not imply Measure. Their suggestions drew on the recommendations of a 1995

that it is the preferred method of presenting or

National Academy of Sciences report and the extensive research on pov-

analyzing data. The Census Bureau uses a variety

of approaches. erty measurement conducted over the past 15 years.

In this report, the term non-Hispanic White

refers to people who are not Hispanic and who

The new thresholds are not intended to assess eligibility for government

reported White and no other race. The Census

programs and will not replace the official poverty thresholds. Instead, the

Bureau uses non-Hispanic Whites as the compari-

son group for other race groups and Hispanics.

new measure will serve as an additional indicator of economic well-being

Because Hispanics may be any race, data

and will provide a deeper understanding of economic conditions and policy

in this report for Hispanics overlap with data

for race groups. Being Hispanic was reported

effects. The official poverty measure, which has been in use since the

by 12.9 percent of White householders who

1960s, estimates poverty rates by looking at a family s or an individual s

reported only one race, 2.9 percent of Black

householders who reported only one race, and

cash income. The new measure will be a more complex statistic incorporat-

2.0 percent of Asian householders who reported

ing additional items, such as tax payments and work expenses, in its family

only one race.

The small sample size of the Asian popula-

resource estimates. Thresholds used in the new measure will be derived

tion and the fact that the CPS does not use sepa-

from Consumer Expenditure Survey expenditure data on basic necessities

rate population controls for weighting the Asian

sample to national totals contribute to the large

(food, shelter, clothing, and utilities) and will be adjusted for geographic

variances surrounding estimates of this group.

differences in the cost of housing. Additional details can be found at

This means that for some estimates for the Asian

population, we are unable to detect statistically

.

significant changes from the previous year. The

American Community Survey (ACS), based on

The Census Bureau s statistical experts, with assistance from BLS and in

a much larger sample size of the population, is

a better source for estimating and identifying

consultation with other appropriate agencies and outside experts, will be

changes for small groups of the population, such

responsible for the measure s technical design. Over 75 comments were

as the Asian population.

The householder is the person (or one of the

received in response to a May 2010 federal register notice regarding the

people) in whose name the home is owned or

measure. The Census Bureau has embarked on an ambitious research

rented and the person to whom the relationship

of other household members is recorded. If a

agenda, which includes an assessment of alternative definitions of the

married couple owns the home jointly, either the

poverty unit, an investigation of alternative data sources for geographic

husband or the wife may be listed as the house-

holder. Since only one person in each household

cost-of-living adjustments, and an evaluation of the reliability of the data

is designated as the householder, the number of

from questions added to the Annual Social and Economic Supplement to

householders is equal to the number of house-

holds. This report uses the characteristics of the

the Current Population Survey (CPS ASEC) in 2010. The Census Bureau

householder to describe the household.

plans to publish documentation on these and other technical aspects of

Data users should exercise caution when

interpreting aggregate results for the Hispanic

the new measure before the end of this year.

population or for race groups because these

populations consist of many distinct groups that

If the President s budget initiative is approved, the Census Bureau will pub-

differ in socioeconomic characteristics, culture,

and recency of immigration. In addition, the CPS

lish the first set of poverty estimates using the new approach in September

does not use separate population controls for

2011. Both the Census Bureau and the Interagency Technical Working

weighting the Asian sample to national totals.

Data were first collected for Hispanics in 1972

Group consider the Supplemental Poverty Measure a work in progress and

and for Asians and Pacific Islanders in 1987. For

expect that there will be improvements to the statistic over time.

further information, see .

2 Income, Poverty, and Health Insurance Coverage in the United States: 2009 U.S. Census Bureau

broad, comprehensive information on and local estimates, see the text box

Medicare, Medicaid, public hous-

social, economic, and housing topics State and Local Estimates of Income,

ing, and employer-provided fringe

and provides this information at many Poverty, and Health Insurance.

benefits.

levels of geography, particularly for

The CPS ASEC provides reliable esti-

Since the publication of the first offi-

local communities.

mates of the net change, from one

cial U.S. poverty estimates in 1964,

Since the CPS ASEC produces more year to the next, in the overall distri-

there has been continuing debate

complete and thorough estimates bution of economic characteristics of

about the best approach to measur-

of income and poverty, the Census the population, such as income and

ing income and poverty in the United

Bureau recommends that people use earnings, but it does not show how

States.

it as the data source for national esti- those characteristics change for the

Recognizing that supplemental esti-

mates. Estimates for income, poverty, same person, family, or household.

mates of income and poverty can pro-

health insurance coverage, and other Longitudinal measures of income,

vide useful information to the public

economic characteristics at the state poverty, and health insurance cover-

as well as to the federal government, level can be found in forthcoming age that are based on following the

in 2009, the Office of Management briefs based on data from the 2009 same people over time are avail-

and Budget s (OMB) Chief Statistician ACS. For more information on state able from the Survey of Income and

formed the Interagency Technical

Working Group on Developing the

State and Local Estimates of Income, Poverty, and

Supplemental Poverty Measure. This

Health Insurance

group asked the Census Bureau, in

cooperation with the Bureau of Labor The U.S. Census Bureau presents annual estimates of median household

Statistics (BLS), to develop the new income, poverty, and health insurance coverage by state and other smaller

statistic. The measure is designed to geographic units based on data collected in the American Community

obtain an improved understanding of Survey (ACS). Single-year estimates are available for geographic units

the economic well-being of American with populations of 65,000 or more. The ACS also produces estimates of

families and how federal policies income and poverty for counties and places with populations of 20,000 or

affect those living in poverty. The text more by pooling 3 years of data. Before the end of this year, 5-year income

box Supplemental Poverty Measure and poverty estimates will be available for all geographic units, includ-

ing census tracts and block groups. (Since questions on health insurance

provides more information.

coverage were added to the ACS in 2008, 3-year estimates for health

The CPS is the longest-running survey

insurance coverage will not be available until next year. Five-year health

conducted by the Census Bureau.

insurance coverage estimates for the smallest geographic units will be

The CPS ASEC asks detailed ques- available in 2013.)

tions categorizing income into over

The Census Bureau s Small Area Income and Poverty Estimates (SAIPE)

50 sources. The key purpose of the

program also produces single-year estimates of median household income

CPS ASEC is to provide timely and

and poverty for states and all counties, as well as population and poverty

detailed estimates of income, poverty,

estimates for school districts. These estimates are based on models using

and health insurance coverage and to

data from a variety of sources, including current surveys, administra-

measure change in those estimates at

tive records, intercensal population estimates, and personal income data

the national level. The CPS ASEC is the

published by the Bureau of Economic Analysis. In general, SAIPE estimates

official source of the national poverty

have lower variances than ACS estimates but are released later because

estimates calculated in accordance

they incorporate ACS data in the models. Estimates for 2008 are available

with OMB s Statistical Policy Directive

at . Estimates for 2009 will

No. 14 (Appendix B).

be available later this year.

The Census Bureau also reports

The Census Bureau s Small Area Health Insurance Estimates (SAHIE) pro-

income, poverty, and health insur-

gram produces model-based estimates of health insurance coverage rates

ance coverage estimates based on

for states and counties. The SAHIE program released 2007 estimates of

data from the American Community

health insurance coverage by age, sex, race, Hispanic origin, and income

Survey (ACS). The ACS is part of

categories at the state level and by age, sex, and income categories at the

the 2010 Census program and has

county level in 2010. These estimates are available at .

census questionnaire. The ACS offers

Income, Poverty, and Health Insurance Coverage in the United States: 2009 3

U.S. Census Bureau

INCOME IN THE UNITED

Program Participation (SIPP). Estimates Real median income declined for

STATES

derived from SIPP data answer ques- Black households and non-Hispanic

tions such as: White households between 2008

Highlights and 2009, while the changes for

What percentage of households

Asian and Hispanic-origin house-

The real median household income

move up or down the income dis-

holds were not statistically different

in 2009 was $49,777, not statis-

tribution over time?

(Table 1 and Figure 1).

tically different from the 2008

How many people remain in pov-

median (Table 1 and Figure 1).

erty over time? Native-born households and house-

holds maintained by a noncitizen

How long do people without Real median income declined by

had declines in real median income

health insurance tend to remain 1.8 percent for family households

between 2008 and 2009.3 The

uninsured? and increased 1.6 percent for non-

changes in the median income of

family households between 2008

The text box Dynamics of Economic

all foreign-born households and

and 2009 (Table 1).

Well-Being provides more information.

households maintained by a natu-

ralized citizen were not statistically

significant (Table 1).

Dynamics of Economic Well-Being

The Midwest and West experienced

declines in real median household

The Survey of Income and Program Participation (SIPP) provides monthly

income between 2008 and 2009

data about labor force participation, income sources and amounts, and

(2.1 percent and 1.9 percent,

health insurance coverage of individuals, families, and households during

respectively).4 The changes in

the time span covered by each of its panels. The data yield insights into

median household incomes in the

the dynamic nature of these experiences and the economic mobility of U.S.

Northeast and South were not sta-

residents.* For example, the data demonstrate that using a longer time

tistically significant (Table 1).

frame to measure poverty (e.g., 4 years) yields, on average, a lower pov-

erty rate than the annual measures presented in this report, while using

The change in income inequality

a shorter time frame (e.g., 2 months) yields higher poverty rates. Some

between 2008 and 2009 was not

specific findings from the 2004 panel include:

statistically significant, as mea-

sured by the shares of aggregate

The proportion of households in the bottom income quintile in 2004

household income by quintiles and

that moved up to a higher quintile in 2007 (30.9 percent) was not sta-

the Gini index (Tables 3 and A-2).5

tistically different from the proportion of households in the top quintile

in 2004 that moved to a lower quintile in 2007 (32.2 percent).

Households with householders who had lower levels of education were Native-born households are those in which

3

the householder was born in the United States,

more likely to remain in or move into a lower income quintile than

Puerto Rico, or the U.S. island areas of Guam,

households whose householders had higher levels of education. the Commonwealth of the Northern Mariana

Islands, American Samoa, or the Virgin Islands

of the United States or was born in a foreign

Approximately 31.6 percent of the population had at least one spell of

country but had at least one parent who was a

poverty lasting 2 or more months during the 4-year period from 2004 U.S. citizen. All other households are considered

foreign born regardless of the date of entry into

to 2007.

the United States or citizenship status. The CPS

does not interview households in Puerto Rico.

Chronic poverty was relatively uncommon, with 2.2 percent of the Of all householders, 86.8 percent were native

born; 6.7 percent were foreign born, naturalized

population living in poverty all 48 months of the period.

citizens; and 6.5 percent were noncitizens (the

difference in the percentage of householders

More information based on these data is available in a series of reports who were naturalized citizens and those who

titled the Dynamics of Economic Well-Being, as well as in table packages were noncitizens is not statistically significant).

The difference in the declines in median

4

and working papers. household income between the Midwest and

West was not statistically significant.

The U.S. Census Bureau is in the process of reengineering the SIPP The rede-

. For a di

Contact this candidate