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Elderly poverty and Supplemental Security Income.

Joyce Nicholas¹, Michael Wiseman

¹Office of Program Development and Research, Office of Retirement and Disability Policy, Social Security Administration, USA.

Social Security Bulletin

|July 8, 2009

Summary

Poverty measurement in the US, using Current Population Survey (CPS) income data, is improved by administrative records. This adjustment reduces estimated poverty rates, especially for elderly Supplemental Security Income (SSI) recipients.

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Area of Science:

Social Sciences
Economics
Public Policy

Background:

US poverty is measured using income data from the Current Population Survey (CPS), based on 1960s standards.
Means-tested transfer receipt is underreported in the CPS, impacting poverty rate accuracy.
Existing poverty measures may not fully capture the economic situation of vulnerable populations.

Purpose of the Study:

To estimate poverty prevalence in 2002 using improved income data.
To assess the impact of administrative data adjustments on poverty measurement.
To analyze the effect on poverty rates for the general elderly population and SSI recipients.

Main Methods:

Utilized a 2003 CPS/ASEC dataset with 76% of respondents matched to Social Security Administration administrative records.
Adjusted CPS income data with administrative data on earnings and Social Security programs (OASDI, SSI).
Compared poverty rates derived from adjusted versus unadjusted CPS data for absolute and relative poverty measures.

Main Results:

Administrative data adjustment significantly improved the coverage of Supplemental Security Income (SSI) receipt.
Estimated poverty rates for all elderly persons and elderly SSI recipients were substantially lower using adjusted data.
The impact of administrative adjustments was less pronounced for relative poverty perceptions compared to absolute poverty.

Conclusions:

Integrating administrative data into CPS income reporting enhances the accuracy of poverty assessments.
Adjusted poverty rates offer a more precise understanding of economic hardship, particularly for the elderly and SSI beneficiaries.
The findings underscore the importance of administrative data for refining poverty measurement and policy evaluation.