RESUMO
This paper undertakes a comprehensive analysis of multidimensional poverty in the United States over the last decade. It provides estimates of multidimensional poverty over more than a decade, from 2008 to 2019, which covers the Great Recession and the recovery following the recession when major policy changes such as the Affordable Care Act were implemented. For the first time, spatial trends in estimates of multidimensional poverty are also provided. We measure annual poverty levels in 4 regions, 50 states and examine the relation between multidimensional poverty and neighborhood characteristics. We find that on average, 13 percent of the United States population was multidimensional poor. Poverty rates were high in the South and the West and among young adults, immigrants and Hispanics. Alternative indices of multidimensional poverty show consistent trends; multidimensional poverty in the United States rose between 2008 and 2010 and then gradually declined. However, more than a quarter of individuals with incomes above the poverty threshold remained multidimensional poor. This underscores the fact that income does not always capture deprivation experienced by individuals. Policies geared towards affordable housing, health insurance and higher education will help reduce multidimensional poverty in the United States. Supplementary Information: The online version contains supplementary material available at 10.1007/s11205-022-02902-z.
RESUMO
This paper provides a unified framework for practitioners who wish to estimate alternative indices of multidimensional poverty. These alternative indices are used to estimate multidimensional poverty in the USA over the last decade with a focus on analyzing trends by race and ethnicity. Individual level data on five different dimensions of well-being are compiled over the last decade using annual Census surveys. We find that multidimensional poverty in the USA declined over time regardless of the index used. A higher incidence of multidimensional poverty was observed among Hispanics, American Indians and Blacks. Poverty ranking among racial/ethnic groups was robust to the indices used. Estimates of alternative indices highlight different aspects of multidimensional poverty and provide complementary information on poverty in the USA in the last decade.
RESUMO
The coronavirus pandemic led to a severe economic shock in the United States. This paper uses a unique survey data collected early on in the pandemic to measure economic deprivation among individuals. The Federal Reserve Board fielded a Survey of Household Economics and Decision-making (SHED) in April 2020. This survey is used to compile data on four indicators of economic deprivation, namely: i) Overall financial condition, ii) Loss of employment, iii) Reduction in income and iv) Inability to pay bills in full. Data on these indicators is compiled for each individual and is used in a novel way to construct a set of multidimensional deprivation indices. These indices measure the overlap of deprivations experienced by an individual. Results show that almost 25 percent of the respondents faced hardships in at least two of the four indicators. More than 13 percent of adults reported their inability to pay monthly bills and struggled to make ends meet financially. One in four respondents had lower income compared to income from previous month. The economic shock affected Hispanics in a more profound way. More than 37 percent Hispanics reported hardship in two or more indicators and 8 percent reported hardship in all four indicators. Higher proportion of young adults and those without a college degree suffered multiple hardships. The paper highlights the plight of Americans during the early months of the economic crisis set in motion amid the coronavirus pandemic and sheds light on how economic disparities deepened along racial/ethnic lines.
