This feature is part of an ongoing RSF blog series, Work in Progress, which highlights some of the research of our current class of Visiting Scholars.
This fall, the U.S. Census Bureau reported the official national poverty rate as 14.8%, a number virtually unchanged from the year prior. Many poverty scholars, including RSF president Sheldon Danziger, have long debated the accuracy of this official measure, pointing out that it does not take into account non-cash benefits such as food stamps and housing subsidies, and therefore fails to reflect the importance of the social safety net for low-income families.
Current RSF Visiting Scholar James Ziliak (University of Kentucky) has identified yet another factor that affects the Census Bureau’s official poverty measure, which is calculated based on responses to earnings questions on the Current Population Survey Annual Social and Economic Supplement (ASEC). In his ongoing research, Ziliak has observed a non-response rate to ASEC earnings questions of over 30%. These missing figures present a significant obstacle to our understanding of poverty and inequality—if, for example, a significant percentage of ASEC non-respondents are low-income, the national poverty rate would be much higher than the Census Bureau’s current estimate.
While the Census has in place a process for accounting for ASEC non-responses, Ziliak has also identified shortcomings with their approach. To obtain more accurate income data for non-respondents, Ziliak instead links the Current Population Survey to tax records. In a new interview with the Foundation, Ziliak discussed his work and its ramifications for the way we measure and understand poverty.
Q. Your research at the Foundation examines the rise of non-responses to earnings questions in the Current Population Survey and its effect on our understanding of poverty in the US. How does the Census Bureau currently account for non-respondents? What are the shortcomings of their approach?