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European Lessons for U.S. Poverty Measurement Deconstructing poverty measures in Europe and the United States Richard V. Burkhauser November 4, 2009.

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Presentation on theme: "European Lessons for U.S. Poverty Measurement Deconstructing poverty measures in Europe and the United States Richard V. Burkhauser November 4, 2009."— Presentation transcript:

1 European Lessons for U.S. Poverty Measurement Deconstructing poverty measures in Europe and the United States Richard V. Burkhauser November 4, 2009

2 Table 1. European Poverty Rates by Member State Using Alternative Solidarity Group Medians

3 Table 2. State Child Poverty Rates in the United States Using Alternative Solidarity Group Medians

4

5 Real Median Size-Adjusted Household Income of individuals in the USA, including and excluding health-insurance benefits: 1995 to 2007 (in 2007 dollars)

6 Table 1. Alternative Measures of Mean Income in 2007, by Decile DecileIncomeEmployer Health Insurance MedicaidMedicareTotal Health Insurance Total Income Share Health Insurance Lowest5,9873461,5612,1294,03610,02340.26 213,6459878673,1114,96418,61026.68 319,7121,7195422,5144,77524,48619.50 425,8342,4553411,8794,67530,50915.32 532,1323,0432171,2424,50236,63412.29 639,0463,5311401,0254,69643,74210.74 747,0174,0071108434,96051,9779.54 857,2644,318637165,09762,3618.17 973,3144,582456355,26278,5766.70 10138,8654,764286345,426144,2923.76 Mean45,9332,9753951,4724,84350,7769.54

7 Table 2. Changes in Mean Income (with and without value of Health Insurance) 1995 to 2007 Decile Income 1995 Income 2007 Percent Change in Income Total Income 1995 Total Income 2007 Percent Change in Total Income Share of Health Insurance 1995 Share of Health Insurance 2007 Lowest5,3145,98712.668,16210,02322.8034.8940.26 211,81713,64515.4715,02118,61023.8921.3326.68 317,11819,71215.1520,02524,48622.2814.5219.50 422,41925,83415.2325,26630,50920.7511.2715.32 527,81532,13215.5230,67536,63419.439.3212.29 633,71639,04615.8136,62843,74219.427.9510.74 740,55647,01715.9343,60951,97719.197.009.54 849,46257,26415.7752,74062,36118.246.218.17 963,38673,31415.6666,77978,57617.675.086.70 10120,721138,86515.03124,122144,29216.252.743.76 Mean40,37845,93313.7643,45550,77616.857.089.54

8 Gini coefficients including health-insurance benefits YearIncome Income plus Employer Health Insurance Income plus MedicaidIncome plus Medicare Total Income = income + all health insurance benefits 1995 0.42220.41660.41370.41000.3963 1996 0.42660.42080.41880.41400.4008 1997 0.42910.42280.42260.41620.4037 1998 0.42630.42000.42020.41410.4019 1999 0.42670.41960.42160.41480.4027 2000 0.4270.41930.42160.41440.4016 2001 0.43230.42430.42630.41880.4050 2002 0.42880.42060.42210.41440.4000 2003 0.43160.42360.42430.41700.4023 2004 0.4330.4250.42520.41780.4025 2005 0.43660.42820.42870.42100.4052 2006 0.4380.42950.43020.42050.4046 2007 0.43010.42230.42170.41150.3959

9 Year Pre-tax income (exclude health insurance) Pre-tax income + all health insurance Post-tax income + all health insurance Post-tax income + all health insurance + tax employer-based health insurance Gini increase from taxing health insurance 19950.42220.39630.33520.33590.0007 19960.42660.40080.33790.33870.0008 19970.42910.40370.34110.34210.0010 19980.42630.40190.33560.33640.0007 19990.42670.40270.33440.33520.0008 20000.42700.40160.33320.33430.0011 20010.43240.40500.33590.33680.0009 20020.42880.40000.33540.33640.0011 20030.43160.40230.34710.34740.0004 20040.43300.40250.34620.34650.0003 20050.43660.40520.35070.35160.0009 20060.43800.40460.35390.35530.0014 20070.43010.39590.34580.34680.0010 Gini coefficients including taxes, and changing tax-policies

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