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The Long-Term Effects of Income for At-Risk Infants: Evidence from Supplemental Security Income
March 2024
Working Paper Number:
CES-24-10
This paper examines whether a generous cash intervention early in life can "undo" some of the long-term disadvantage associated with poor health at birth. We use new linkages between several large-scale administrative datasets to examine the short-, medium-, and long-term effects of providing low-income families with low birthweight infants support through the Supplemental Security Income (SSI) program. This program uses a birthweight cutoff at 1200 grams to determine eligibility. We find that families of infants born just below this cutoff experience a large increase in cash benefits totaling about 27%of family income in the first three years of the infant's life. These cash benefits persist at lower amounts through age 10. Eligible infants also experience a small but statistically significant increase in Medicaid enrollment during childhood. We examine whether this support affects health care use and mortality in infancy, educational performance in high school, post-secondary school attendance and college degree attainment, and earnings, public assistance use, and mortality in young adulthood for all infants born in California to low-income families whose birthweight puts them near the cutoff. We also examine whether these payments had spillover effects onto the older siblings of these infants who may have also benefited from the increase in family resources. Despite the comprehensive nature of this early life intervention, we detect no improvements in any of the study outcomes, nor do we find improvements among the older siblings of these infants. These null effects persist across several subgroups and alternative model specifications, and, for some outcomes, our estimates are precise enough to rule out published estimates of the effect of early life cash transfers in other settings.
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National Experimental Wellbeing Statistics - Version 1
February 2023
Working Paper Number:
CES-23-04
This is the U.S. Census Bureau's first release of the National Experimental Wellbeing Statistics (NEWS) project. The NEWS project aims to produce the best possible estimates of income and poverty given all available survey and administrative data. We link survey, decennial census, administrative, and third-party data to address measurement error in income and poverty statistics. We estimate improved (pre-tax money) income and poverty statistics for 2018 by addressing several possible sources of bias documented in prior research. We address biases from 1) unit nonresponse through improved weights, 2) missing income information in both survey and administrative data through improved imputation, and 3) misreporting by combining or replacing survey responses with administrative information. Reducing survey error substantially affects key measures of well-being: We estimate median household income is 6.3 percent higher than in survey estimates, and poverty is 1.1 percentage points lower. These changes are driven by subpopulations for which survey error is particularly relevant. For house holders aged 65 and over, median household income is 27.3 percent higher and poverty is 3.3 percentage points lower than in survey estimates. We do not find a significant impact on median household income for householders under 65 or on child poverty. Finally, we discuss plans for future releases: addressing other potential sources of bias, releasing additional years of statistics, extending the income concepts measured, and including smaller geographies such as state and county.
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Measuring School Economic Disadvantage
November 2022
Working Paper Number:
CES-22-50R
Many educational policies hinge on the valid measurement of student economic disadvantage at the school level. Measures based on free and reduced-price lunch enrollment are used widely. However, recent research raises questions about their reliability, particularly following the introduction of universal free lunch in certain schools and districts. Using unique data linking the universe of students in Oregon public schools to IRS tax records and other data housed at the U.S. Census Bureau, we provide the first examination of how well different measures capture school economic disadvantage. We find that, in Oregon, direct certification provides the best widely-available measure, both over time and across the distribution of school economic disadvantage. By contrast, neighborhood-based measures consistently perform relatively poorly.
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The Antipoverty Impact of the EITC: New Estimates from Survey and Administrative Tax Records
April 2019
Working Paper Number:
CES-19-14R
We reassess the antipoverty effects of the EITC using unique data linking the CPS Annual Social and Economic Supplement to IRS data for the same individuals spanning years 2005-2016. We compare EITC benefits from standard simulators to administrative EITC payments and find that significantly more actual EITC payments flow to childless tax units than predicted, and to those whose family income places them above official poverty thresholds. However, actual EITC payments appear to be target efficient at the tax unit level. In 2016, about 3.1 million persons were lifted out of poverty by the EITC, substantially less than prior estimates.
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Capturing More Than Poverty: School Free and Reduced-Price Lunch Data and Household Income
December 2017
Working Paper Number:
carra-2017-09
Educational researchers often use National School Lunch Program (NSLP) data as a proxy for student poverty. Under NSLP policy, students whose household income is less than 130 percent of the poverty line qualify for free lunch and students whose household income is between 130 percent and 185 percent of the poverty line qualify for reduced-price lunch. Linking school administrative records for all 8th graders in a California public school district to household-level IRS income tax data, we examine how well NSLP data capture student disadvantage. We find both that there is substantial disadvantage in household income not captured by NSLP category data, and that NSLP categories capture disadvantage on test scores above and beyond household income.
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The Effect of Low-Income Housing on Neighborhood Mobility:
Evidence from Linked Micro-Data
May 2016
Working Paper Number:
carra-2016-02
While subsidized low-income housing construction provides affordable living conditions for poor households, many observers worry that building low-income housing in poor communities induces individuals to move to poor neighborhoods. We examine this issue using detailed, nationally representative microdata constructed from linked decennial censuses. Our analysis exploits exogenous variation in low-income housing supply induced by program eligibility rules for Low-Income Housing Tax Credits to estimate the effect of subsidized housing on neighborhood mobility patterns. The results indicate little evidence to suggest a causal effect of additional low-income housing construction on the characteristics of neighborhoods to which households move. This result is true for households across the income distribution, and supports the hypothesis that subsidized housing provides affordable living conditions without encouraging households to move to less-affluent neighborhoods than they would have otherwise.
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Using Linked Survey and Administrative Data to Better Measure Income: Implications for Poverty, Program Effectiveness and Holes in the Safety Net
October 2015
Working Paper Number:
CES-15-35
We examine the consequences of underreporting of transfer programs in household survey data for several prototypical analyses of low-income populations. We focus on the Current Population Survey (CPS), the source of official poverty and inequality statistics, but provide evidence that our qualitative conclusions are likely to apply to other surveys. We link administrative data for food stamps, TANF, General Assistance, and subsidized housing from New York State to the CPS at the individual level. Program receipt in the CPS is missed for over one-third of housing assistance recipients, 40 percent of food stamp recipients and 60 percent of TANF and General Assistance recipients. Dollars of benefits are also undercounted for reporting recipients, particularly for TANF, General Assistance and housing assistance. We find that the survey data sharply understate the income of poor households, as conjectured in past work by one of the authors. Underreporting in the survey data also greatly understates the effects of anti-poverty programs and changes our understanding of program targeting, often making it seem that welfare programs are less targeted to both the very poorest and middle income households than they are. Using the combined data rather than survey data alone, the poverty reducing effect of all programs together is nearly doubled while the effect of housing assistance is tripled. We also re-examine the coverage of the safety net, specifically the share of people without work or program receipt. Using the administrative measures of program receipt rather than the survey ones often reduces the share of single mothers falling through the safety net by one-half or more.
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Parental Earnings and Children's Well-Being and Future Success: An Analysis of the SIPP Matched to SSA Earnings Data
April 2011
Working Paper Number:
CES-11-12
We estimate the association between parental earnings and a wide variety of indicators of child well-being using data from the Survey of Income and Program Participation (SIPP) matched to administrative earnings records from the Social Security Administration. We find that the use of longer time averages of parent earnings leads to substantially higher estimated effects compared to using only a single year of parent earnings. This suggests that previous studies may have understated the potential efficacy of income support programs to improve child well-being. Further, policy makers should take into account the attenuation bias when comparing studies that use different time spans to measure parental income. Using 7 year time averages of parent earnings, we show for example, that a doubling of parent earnings reduces the probability of a teenager reporting being in poor health by close to 50 percent and a child having insufficient food by 75 percent.
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Poverty Estimates for Places in the United States
September 2005
Working Paper Number:
CES-05-12
This paper first describes some historical poverty trends, overall and for demographic groups and broad locations within the U.S. from an ongoing household survey, and then presents some specific information on poverty for localities by size, from the most recent decennial census (2000). Rural poverty exceeded urban poverty in 1969 and 1979, but urban poverty in 1999 was higher than rural poverty. Non-metropolitan area poverty exceeded metropolitan area poverty in each of the four censuses, but within each of those areas, rural poverty is now less than urban poverty. Within metropolitan areas, poverty is highest for those in central cities. For urbanized areas (50,000 or more population), the poverty rate is lower as the area gets larger, with the exception of the very largest-sized areas. This higher poverty for the largest places is accounted for entirely by the higher poverty rate for the central city or cities in those urban agglomerations, as the poverty rates for the parts of the urbanized areas not in the central place continue to fall as the area itself gets larger. Some of the critical relationships affecting the poverty rate of places appear to be the location of certain types of people - female householders, non-citizens, people of color, and college graduates.
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County-Level Estimates of the Employment Prospects of Low-Skill Workers
July 2000
Working Paper Number:
CES-00-11
This study examines low-skill wage and employment opportunities for men and women at the county level over the period 1989-96. Currently, reliable direct measures of wages and employment rates for different demographic and skill groups are only available for large geographic areas such as regions and populous states or at infrequent intervals (e.g., from the Decennial Census) for some smaller areas. This study constructs indirect annual measures for all counties from 1989-96 by combining skill-specific information on earnings and employment from the Sample Edited Detail File (SEDF) of the 1990 Decennial Census and the 1990-97 Annual Demographic files of the Current Population Survey (CPS) with annual industry-specific information from the Regional Economic Information System (REIS). Special versions of the SEDF and CPS files that identify county of residence are used. The study regresses the low-skill wage and employment data from the SEDF and CPS files on a set of personal variables from the combined files and local employment measures derived from the REIS. The wage regressions are corrected for selectivity from the employment decision and account for county-specific effects as well as general time effects. Estimates from the regressions are then combined with the available employment data from the REIS to impute wage and employment rates for low-skill adults across counties.
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