Income and Poverty Rate Held Steady in 2012

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Written by: Chuck Nelson

Between 2011 and 2012 in the United States, neither real median income nor the poverty rate changed. For the previous four years (2008, 2009, 2010, 2011) either poverty increased (2008, 2009, 2010) or median household income decreased (2008, 2010, 2011).

Median Income and Poverty rate, 1967 to 2012

Blue bars denote recession periods

As you can see from these charts, when poverty goes up, median income historically tends to go down. Some years the change for one estimate is statistically significant while the change for the other is not. It’s also noteworthy that for the first time since 1992, the year-to-year changes for both estimates were not statistically significant ─ in other words, not enough to be considered a real change.

So while we are not seeing income increase and poverty fall, we are not seeing the opposite either.

The lack of change between 2011 and 2012 was widespread for both income and poverty across demographic groups, geographic regions and other characteristics.  Likewise, most earnings estimates were flat across the two years and there was no change in the female-to-male earnings ratio.   Most measures of income inequality were the same in 2012 as in 2011.

One area with a positive change was in the number of workers.  There were 2.7 million more people with earnings in 2012 than in 2011. One million more men reported full-time, year-round work in 2012 than in 2011. The change in the number of women working full time, year- round was not statistically significant.

The findings show that our nation has not yet recovered to its prerecession circumstances. Median household income in 2012 was still 8.3 percent lower than in 2007, the year before the most recent recession. Poverty was 2.5 percentage points higher than in 2007. Median income was also 9.0 percent lower than the median household income peak that occurred in 1999.

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How We Measure Health Insurance

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Written by: Jonathan Rodean

Next week, the Census Bureau is releasing two sources for health insurance statistics in the United States:  the Annual Social and Economic Supplement to the Current Population Survey (CPS ASEC) and the American Community Survey (ACS).  While both surveys have questions that attempt to measure the same phenomena, they go about it in different ways.

Since 1987, the CPS ASEC has collected health insurance statistics every year, making it one of the most widely used sources of statistics on health insurance coverage in the United States.  It provides statistics on health insurance status (insured or not insured), as well as type of coverage, for the whole nation, by demographic groups, and shows us trends over the last couple of decades.  By combining two years of CPS sample, this survey can also provide state statistics on health insurance.

Starting five years ago, the Census Bureau also began asking about health insurance coverage using the ACS.  With its much larger sample size, we can see health insurance statistics for a broader range of geographic levels including all 50 states, all counties, metro areas, and many other small geographies.

Both surveys obtain a person’s health insurance status by asking if a person has insurance through a number of different sources: an employer, directly through an insurance company, Medicare, Medicaid, Veterans Administration and other public sector insurance and the military.  However, the surveys differ in both their time of collection and reference period.

Like the other topics in the CPS ASEC, which is conducted in February, March, and April, respondents answer questions about the previous calendar year.  Specifically, we ask if they were covered at any time in the previous calendar year.  CPS ASEC, thus, measures if a person was insured on any day during the previous year.  They are considered “uninsured” only if, for the entire year, they had no coverage under any type of health insurance.

In contrast, the ACS is a rolling sample of households collected continuously all year long.  We ask if a person is currently covered by any of the listed types of health insurance.  So, ACS measures health insurance of the population based on whether people are insured at the point-in-time that they answered the survey during the year of collection.

There is also a variety of differences in the survey logistics.  While the ACS is most often administered online or through a paper survey that is mailed to respondents, the CPS ASEC is administered by phone.  Because of space limits within the paper survey, the ACS asks fewer and less detailed questions than the CPS ASEC.  The ACS asks about the insurance coverage of each household member specifically, while the CPS ASEC asks if anyone in the household is covered, and if so, who that is.   

health insurance graphicWith these variations and others, the CPS ASEC and ACS produce slightly different statistics on health insurance coverage.  The two surveys show similar trends (as shown in the graph below), though the CPS ASEC shows higher uninsured rates for each year.  This degree of consistency between the two surveys collected under such different conditions gives us confidence that these statistics are useful for those who need to understand the state of health insurance in America.

Many people contact us each year asking how to know which estimate to use for a particular purpose. For national statistics, we recommend the CPS because it provides a consistent historical time series at the national level back more than a decade. The CPS can also be used to look at limited state-level trends. However, because of the larger sample size and smaller sampling errors, we recommend using the ACS for subnational geographies.

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How the Census Bureau Measures Income and Poverty

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Written by: David Johnson

Note: This is an updated  version of a blog that ran last year. It provides important information on when to use statistics from the Current Population Survey and when to use them from the American Community Survey for income and poverty.

Income, poverty and health insurance statistics  for 2012 from the Current Population Survey (CPS) will be released Tuesday, Sept. 17, 2013. One-year statistics from the 2012 American Community Survey (ACS) will be released on Thursday, Sept. 19, 2013.

In all likelihood, the national statistics from these two sources will not be identical. Why not? Which is correct? Well, it’s complicated.

The Current Population Survey serves as the nation’s primary source of statistics on labor force characteristics. A supplement to the survey provides the official annual statistics on the nation’s income and poverty levels as well as statistics on age, sex, race, marital status, educational attainment, employee benefits, work schedules, school enrollment, health insurance, noncash benefits and migration.

The American Community Survey, on the other hand, is the only source of small-area statistics available on a wide range of important social and economic characteristics for all communities in the country. In addition to income, poverty and health insurance, other topics include education, language ability, the foreign-born, marital status, migration, homeownership, the cost and value of our homes and many more.

Statistics from these two surveys differ for a number of reasons. First, income questions on the CPS are much more detailed than the summary questions asked on the ACS.

Second, the reference periods for the two surveys are very different. The CPS asks respondents to report on their income in the previous calendar year. The ACS asks about income in the prior 12 months. Since the ACS is a continuous survey administered throughout the year, some respondents to the 2012 ACS (those who fill out the survey in January) are reporting income received between January 2011 and December 2011 while other respondents (those who fill out the survey in December) are reporting income received between December 2011 and November 2012.

Third, for the CPS, trained interviewers administer the survey while people primarily respond to ACS questions over the Internet or by mail. (Trained interviewers follow-up with households who do not respond to the ACS online or by mail.)

These differences often result in different national statistics for such key indicators as poverty, median income and inequality. Despite differences in the “levels” of these indicators, the trends over time tend to be very similar across the two surveys. The following graphs show median household income and poverty rates from the ACS compared with statistics from the CPS for previous years. The red line adjusts the CPS for the differences in reference periods.

 Comparison of CPS ASEC and ACS Median Household Income and Poverty Rates: 2000 to 2011

Many people contact us each year asking which estimate to use for a particular purpose. For national statistics, we recommend the CPS because it provides a consistent historical time series at the national level back, in some cases,  more than half a century. The CPS can also be used to look at limited state-level trends. However, because of the larger sample size and smaller sampling errors, we recommend using the ACS for subnational geographies.

The next two charts show the volatility of the single year CPS ASEC statistics relative to the ACS statistics for two smaller states: Arkansas and Maryland. Since the CPS has a smaller sample size, you see more volatility in these smaller states.


Comparison of CPS ASEC and ACS Poverty Rates: 2000 to 2011: Arkansas

Comparison of CPS ASEC and ACS Household Median Income: 2000 to 2011 Maryland

If you are interested in a longer time series for a small state than is available from the American Community Survey, we recommend using two- or three-year averages from the CPS ASEC.



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Who is a STEM Worker?

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Written by: Liana Christin Landivar

Did you know that the most common science, technology, engineering, and math (STEM) occupation is software developer? More than 80 percent of STEM workers today are employed in computer occupations or engineering.

Two new Census Bureau reports look at the educational background and the demographic characteristics of STEM workers.

In 2011, there were 7.2 million people employed in STEM occupations, accounting for 6 percent of the workforce. An additional 7.8 million people worked in occupations related to STEM, such as health care.

When we look at the size and composition of the STEM workforce, we can see how it has changed over time, rising from 4 percent in 1970 to 6 percent in 2011.

Engineering employed the most STEM workers until the 1990s. After a surge of employment linked to the expansion of the Internet and computers in daily use, computer occupations surpassed engineering. Currently, engineers make up about a third of STEM employment, while computer workers comprise half of the STEM workforce.

Employment in STEM occupations from 1970 to 2011

Women’s representation in STEM employment has increased since the 1970s, but they remain underrepresented in engineering and computer occupations. In addition, the most recent decades show less growth in STEM employment among younger women. Most of the growth in women’s share of STEM employment among those under 40 occurred between 1970 and 1990.

Employment in STEM also varies by race and Hispanic origin. About 71 percent of STEM workers are non-Hispanic white, followed by Asian (15 percent), Hispanic (7 percent) and Black (6 percent). (The estimates for Black and Hispanic employment in STEM occupations are not statistically different.)  

Standardizing STEM

Industry, government, and academic leaders have increasingly focused on STEM as a key component of innovation and increased economic prosperity. However, until recently, the definition of STEM lacked standardization, making cross-organizational and cross-national comparisons of the STEM workforce difficult.

In April 2012, the Standard Occupational Classification Policy Committee, a consortium of nine federal agencies charged with standardizing occupational definitions, issued a recommended STEM occupation classification. This classification places workers into three primary occupational domains: STEM, STEM-related, and non-STEM. STEM includes computer workers, engineers, mathematicians and statisticians, life scientists, physical scientists, and social scientists. STEM-related includes architects and health care workers. Non-STEM includes all other occupations. This classification is designed to make comparisons of the STEM workforce more consistent across federal agencies and organizations. The Census Bureau reports issued today are consistent with the new STEM occupation classification.

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How the Census Bureau Measures the Foreign-Born Population and Immigration

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Written by: Elizabeth M. Grieco

Census Bureau statistics can be used to answer many questions about the foreign-born population in the United States. For example: How many foreign-born people are here? Where are they from? Where do they live? Are they naturalized U.S. citizens or noncitizens? Do they speak English? How many have a college degree? Are they working? How much do they make? What percent are in poverty? How many have health insurance coverage?

Data from the American Community Survey can be used to answer these and many other key questions. As the nation’s flagship survey, the American Community Survey is designed to provide statistics on demographic, social, economic and housing characteristics of American communities. This includes the immigrant population.

According to the 2011 American Community Survey, there were 40.4 million foreign-born people living in the United States. More than half (53 percent) were born in Latin America and more than one-fourth (29 percent) in Asia. Most (56 percent) lived in just four states: California, New York, Texas and Florida. Less than half (45 percent) were naturalized citizens.

The majority (84 percent) of the foreign-born residents age 5 and older spoke a language other than English at home, and among those who did, about two in five (40 percent) spoke English “very well.” More than one in four foreign-born residents 25 and older had a bachelor’s degree or higher education.

In addition, two-thirds (67 percent) of immigrants 16 and older were in the labor force. Foreign-born households had a median income of about $46,000, but about one-in-five immigrant families (19 percent) were in poverty. About one-third (34 percent) had no health insurance coverage.

While the American Community Survey can tell us a great deal about immigrants, what about immigration? How many foreign-born people enter the United States each year? How many of today’s immigrants arrived in the last 10 years, during a previous decade, or even during an earlier period, say, before 1980?

The Census Bureau does not count the number of immigrants entering the United States. Rather, that’s the task of the Department of Homeland Security, the principal source of administrative data on immigration. While invaluable, the Homeland Security data include only a limited number of variables, providing little detailed information for analysis.

Data from the American Community Survey, however, can be used to estimate the number of foreign-born arrivals in two ways. First, the survey asks: Where did you live one year ago? Residence one year ago helps determine the number of immigrants who were living outside the United States a year before the survey. For example, in 2011, there were 1.1 million foreign-born people age 1 and over who lived abroad 12 months before the survey.

Second, the American Community Survey also asks: When did you come to live in the United States? Data on year of entry helps estimate the number of today’s foreign-born people who came to this country during specific periods. For example, in 2011, of the 40.4 million foreign-born, 14.4 million came to live in the United States in 2000 or later; 10.8 million arrived between 1990 and 1999; and 15.2 million entered before 1990.

In contrast to administrative data on immigration, the American Community Survey offers a wealth of additional social, economic, demographic and housing information. This extra information gives policy makers and researchers the opportunity to draw important conclusions about the characteristics of immigrants as well as trends over time.

For instance, by combining residence one year ago with country of birth, the American Community Survey data show that immigration from Mexico has recently declined, from 369,000 in 2005 to 161,000 in 2011. By analyzing when the foreign-born came to live in the United States, the American Community Survey also shows that recent arrivals — those who came in 2008 or later — are more likely to be from Asia and less likely to be from Central America than earlier arrivals.

Also, the longer the foreign-born reside in the country — as measured by the years since they came to live in the United States — the more integrated they are into American society. The survey data clearly show that the longer immigrants live in the United States, the more likely they are to speak English “very well,” have good-paying jobs and be naturalized citizens, and the less likely they are to live in poverty and be uninsured.

For additional information on the foreign-born population in the United States, visit the Census Bureau’s website. In addition, please see a recent report on married-couple households with a foreign-born spouse.

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