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ERIC Number: ED141433
Record Type: Non-Journal
Publication Date: 1976-Oct-19
Reference Count: N/A
Analytical Support for Cost-of-Living Differentials in the Poverty Threshold. The Measure of Poverty, Technical Paper XV.
Carlin, Thomas; And Others
In this report, all readily available federal consumption data (as of July 1975) are analyzed for differences in the costs of consuming food, clothing, housing and other expenditures using several residential definitions. There were two specific objectives to this study: (1) to analyze the data on the cost of these items for differences among various residential classifications for the U.S., and (2) to determine to what extent the analysis of available information could support differentials in the pvoerty definition based on residence. Two approaches were used in this analysis. The first involved exploring available data from a variety of sources to obtain insights into variations in the living cost. This survey approach concentrated on data made available since the 1960-61 Consumer Expenditure Survey, the most recent readily available nationwide source on expenditure patterns. The second approach explored the possibility of obtaining variations in family living costs by residence using a budgeting technique. It is concluded that there appears to be no strong basis upon which to make a decision concerning residential differentials in a poverty threshold using available consumption data. Although differences in food and housing costs were apparent among various residential classifications, it would be difficult to develop simple residential differentials that would be equitable. The interaction between these two items and other components of the family budget is also unclear. Any decision on cost-of-living differentials would still be arbitrary without better data as a basis for judgment. (Author/AM)
Descriptors: Clothing, Consumer Economics, Cost Indexes, Costs, Definitions, Food, Housing, Income, Low Income, Low Income Groups, Poverty
Office of the Assistant Secretary for Planning and Evaluation, Department of Health, Education and Welfare, 200 Independence Avenue, S.W., Room 443D-South Portal Building, Washington, D.C. 20201
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Department of Health, Education, and Welfare, Washington, DC. Office of the Assistant Secretary for Planning and Evaluation.