Elderly poverty and supplemental security income, 2002-2005

Area of Science:

• Social Sciences
• Economics
• Public Policy

Background:

• The Supplemental Security Income (SSI) program is a crucial safety net for vulnerable populations.
• Underreporting of SSI receipt in the Current Population Survey (CPS) affects poverty rate accuracy.
• Previous research adjusted 2002 CPS data using administrative records for SSI and OASDI.

Purpose of the Study:

• To extend the analysis of incorporating administrative data into poverty estimation through 2005.
• To assess the impact of using administrative data on official and relative poverty measures.
• To evaluate changes in poverty rates for different demographic groups, particularly elderly SSI recipients.

Main Methods:

• Adjusting Current Population Survey (CPS) income data with administrative records from the Supplemental Security Income (SSI) and Old-Age, Survivors, and Disability Insurance (OASDI) programs.
• Calculating poverty rates using both the official poverty standard and a relative poverty standard (half of median income).
• Extending the comparative analysis of income adjustment methodologies from 2002 to 2005.

Main Results:

• Incorporating administrative data into poverty estimation presents methodological challenges.
• The adopted methodology for income adjustment reduced overall estimated official poverty rates.
• Estimated poverty rates increased for elderly SSI recipients when administrative data was included.
• Relative poverty rates were substantially higher than official poverty rates across all analyses.
• Poverty levels demonstrated minimal change between 2002 and 2005 under various measurement standards and adjustment procedures.

Conclusions:

• Administrative data integration offers a more nuanced understanding of poverty dynamics.
• Official poverty measures may underestimate poverty, especially among specific demographics like elderly SSI recipients.
• Relative poverty provides a different perspective, highlighting broader economic well-being.
• Despite methodological adjustments, the overall trend indicated a stable poverty landscape during the study period.