Poverty and Income in Texas - Home - Every Texan · 2020-05-26 · Poverty is connected to people...
Transcript of Poverty and Income in Texas - Home - Every Texan · 2020-05-26 · Poverty is connected to people...
Poverty and Income in Texas:
Findings from the 2015 American
Community Survey
Poverty in Texas
Why care about poverty?Research shows living in poverty is connected to negative outcomes,
both for individuals and society
Poverty is connected to people experiencing worse health outcomes. Mothers living in poverty are more likely to have low-birth weight babies, increasing babies’
chances of developmental delays and disabilities.1
According to parent reports, children living in poverty have worse health than childrennot living in poverty.2
People living in poverty experience higher rates of chronic illness such as asthma, diabetes and heart disease.3
Poverty is connected to greater challenges in education.4
Children living in poverty are less likely to complete high school, attend college and complete college.
Children living in poverty tend to perform less well on standardized tests.
Children who are born into poverty are more likely to live in poverty and less likely to have consistent employment as adults.5
2015 Poverty Thresholds
The U.S. Census Bureau uses the federal poverty thresholds to estimate the number of poor people in the United States. People in families with incomes below these thresholds are considered to be “living below the poverty line.”
U.S Census Bureau. Poverty Thresholds. http://www.census.gov/hhes/www/poverty/data/threshld/index.html
Size of FamilyPoverty Thresholds
(total annual income)
One person(under 65)
$12,331
Family of Two(one adult, one child)
$16,337
Family of Three(one adult, two children)
$19,096
Family of Four(two adults, two children)
$24,036
Texas has the 15th worst rate of poverty in the U.S.
ACS Table R1701, 1-Year Estimates (2015), KIDS COUNT Data Center.
2015 US poverty rate: 14.7%
MS: 22% (Highest)
NH: 8.2% (Lowest)
15.9%
The Rio Grande Valley is home to thethree poorest metro areas in the U.S.
ACS Table GCT1701 (Metropolitan and Micropolitan Statistical Area), 1-Year Estimates (2015).
32.4% 31.8% 31.5%
27.6% 27.1% 27.1% 26.8% 26.7% 26.6% 25.7%
0%
10%
20%
30%
40%P
ove
rty
Rat
e
Texas children hardest hit by poverty
Poverty rate within each age group
ACS Table C17001, 1-Year Estimates (2015).
In Texas, children have the highest poverty rate of any age group.The poverty rate of Texas children is 7.1 percentage points higher than the poverty rate of the
total Texas population.
10.3%
11.5%
17.6%
23.0%
0% 5% 10% 15% 20% 25%
65 and over
35 to 64
18 to 34
under 18
Age
(R
ange
)
Poverty rate fortotal TX population
15.9%
Poverty rate within each age groups
Texas children under 5 are nearly twice as likelyto live in poverty as adults
ACS Table B17001, 1-Year Estimates (2015).
13.3%
18.6%
20.9%
23.8%
25.0%
0% 5% 10% 15% 20% 25% 30%
18 and over
16 and 17
12 to 15
6 to 11
0 to 5
Texas child poverty consistently higher than U.S.
ACS Tables S1701 & C17001, 1-Year Estimates 2005-2015.
17.6%15.8%
18.5%
15.9%
24.9%22.5%
26.6%
23.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Poverty (all ages)
Child Poverty
Rec
essi
on
On the positive side, both rates are nearly back to pre-Recession lows.
Poverty rates reflect barriers faced by Texans of different racial and ethnic populations
ACS Table S1701, 1-Year Estimates (2015).
15.9%
8.6%10.6%
21.4% 21.4%22.8%
Total TXPopulation
White, notHispanic
Asian Other Black Hispanic
Pove
rty
Rat
e w
ith
in e
ach
rac
ial/
eth
nic
po
pu
lati
on
Nearly 1 million White Texans & 2.3 million Hispanic Texans are experiencing poverty
ACS Table S1701, 1-Year Estimates (2015).
White, notHispanic
Hispanic Black Other Asian
Pop
ula
tio
n C
ou
nt
Above Poverty Level
Below Poverty Level
1.10M
2.4M
1.26M
8.0M
10.53M
130.9K345.0K673.9K
2.3M
997.8K
Hispanics are over-represented in Texas poverty population
ACS Table S0601 and S1701, 1-Year Estimates (2015).
White, not Hispanic
42.9%
Hispanic 38.9%
Black12.0%
Asian 4.5%Other6.0%
All Texans
White, not Hispanic
23.4%
Hispanic 56.3%
Black15.8%
Asian 3.1%Other8.1%
Texans Living in Poverty
Hispanics represent 39% of all Texans, but 56% of poor Texans
Most Texans living in poverty are U.S. citizensCitizenship status of Texans living in poverty
ACS Table C17025, 1-Year Estimates (2015).
82.6%3.51M
17.4%741K
U.S. Citizens
Non-Citizens*
*Non-Citizens: People who indicate they are not U.S. citizens. This includes people categorized as immigrant, nonimmigrant, undocumented, and people holding nonimmigrant visas (i.e. student, working)
Female-headed households are also over-represented
among Texans living in poverty
ACS Table B17023, 1-Year Estimates (2015).
Two-Adult71.8%
Female-Headed20.7%
Male-Headed
7.4%
Two-Adult40.1%Female-
Headed51%
Male-Headed
9.0%
All Texas Households Texas Households Living in Poverty
Working-age women (18 to 64) in Texas are more likely to live in poverty than men
ACS Table B17001, 1-Year Estimates (2015).
23.1%
14.1%
9.7% 10.1%8.7%
22.9%
21.1%
13.7%
11.5%
1.5%
under 18 18 to 34 35 to 54 55 to 64 65 and over
Male Female
In Texas, the higher your degree, the less likely you are to experience poverty
ACS Table C17003, 1-Year Estimates (2015).
% in Poverty by Level of Educational Attainment26.2%
14.2%
9.4%
4.1%
Less than high schoolgraduate
High school graduate(includes equivalency)
Some college, associate'sdegree
Bachelor's degree or higher
More than One-Third of Texans live below 200%of the Federal Poverty Threshold, aka “working poor”
ACS Table B17002, 1-Year Estimates (2015).
6.6%
9.2%
20.3%
63.8%%
of
Tota
l TX
po
pu
lati
on
$24,632 (200% FPL for one person)
$12,316 (100% FPL for one person)
$6,158 (50% FPL for one person)
27 million Texans
The Supplemental Poverty MeasureA WAY TO MEASURE IMPACT OF POVERTY REDUCTION POLICIES AND THE COST OF LIVING
… and subtracts necessary expenses from income, such as…
Supplemental Poverty Measure (SPM)
SNAP benefits (food stamps), Social Security, refundable tax credits (Earned Income Tax Credit, Child Tax Credit), housing subsidies
Taxes, work expenses, medical out-of-pocket expenses, child care expenses, child support paid
Short, K. (2014). The Supplemental Poverty Measure: 2013. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html
The SPM provides a more true poverty measure since it takes into account benefits that help people meet basic needs, such as:
Fox, L. & Renwick, T. (2016). The Supplemental Poverty Measure: 2015. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html, numbers indicate the percentage point increase or decline in the poverty rate when accounting for each of these expenses or policies.
Social Security has the strongest anti-poverty effect, as evidenced by the Supplemental Poverty Measure (SPM)
Medical Out of Pocket Expenses, +3.52
Work Expenses (ex: transportation), +1.75
Payroll Taxes (FICA), +1.52
Social Security, -8.34
Refundable Tax Credits, -2.88
SNAP, -1.44
Biggest Expenses that Worsen Poverty Rate
Benefits Most Likely to Improve Poverty Rate
The overall U.S. poverty rate is slightly higherwhen factoring in benefits and expenses through the Supplemental
Poverty Measure (SPM)
13.5% 14.3%
Official PovertyMeasure
Supplemental PovertyMeasure
Fox, L. & Renwick, T. (2016). The Supplemental Poverty Measure: 2015. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html
Under the Supplemental Poverty Measure (SPM), national poverty rates are lower for children, higher for adults and seniors
13.7%
13.8%
16.1%
8.8%
12.4%
20.1%
65 and older
18 to 64
Under 18
Official Poverty Rate, U.S.
Supplemental Poverty Rate, U.S.
Fox, L. & Renwick, T. (2016). The Supplemental Poverty Measure: 2015. http://www.census.gov/hhes/povmeas/methodology/supplemental/overview.html
Data reflects higher cost of health care for seniors and positive impact of benefits for children
Income in Texas
Median income in Texas finally has risenabove pre-recession levels
ACS Tables B19013, 1-Year Estimates 2005-2015, all data adjusted for inflation to 2015 dollars.
$56,120
$57,276
$55,775
$51,140
$55,090 $55,653
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
US Median Household Income
Rec
essi
on
Texas Median Household Income
Median income peak prior to recession
Black and Hispanic Texan’s median household incomes are significantly below the Texas median household income
ACS Tables B19013B-B19013I, 1-Year Estimates (2015).
$55,653
$36,544
$44,782
$61,394
$77,368
Total TX Population Black Hispanic White, not Hispanic Asian
ACS Table B19013B-B19013I, Median Household Income, One-year estimates 2006-2015. Adjusted for inflation and expressed in 2015 dollars.
Median household income has risen for all racial and ethnic groups since 2005; Huge disparities by race/ethnicity remain.
$63,766
$68,654
$67,440
$78,121
$51,140
$55,653
$37,595
$40,812$37,479
$43,345
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
White, not Hispanic
Asian
TX Total
Hispanic
Black
The median income for male-headed families is $15,000 higher per year than for female-headed families
ACS Table B19126, Median Annual Family Income in Texas by Family Type, U.S. Census Bureau, 1-Year Estimates (2015).
$55,653
$25,260
$40,387
$82,147
Total MedianFamily Income
Female-Headed Male-Headed Two-Adult
ACS Table B19081, Mean Household Income, One-year estimates, 2015.
Huge gaps remain between upper and lower income householdsAverage household income is nearly 16x higher
in top 1/5 of households than for bottom 1/5 of households
$204,050
$88,622
$55,762
$33,101
$12,773
Income Quintiles
Top 5th Bottom 5th
End Notes
1. Strulley, K. W., Rehkopf, D. H, & Xuan, Z. (2010). Effects of prenatal poverty on infant health: State earned income tax credits and birth weight. American Sociological Review, 75(4), 534-562, Retrieved from http://www.irp.wisc.edu/newsevents/workshops/2011/participants/papers/15-Strully.pdf. For effects of low-birth weight on future health problems see Child Trends Databank (2014), Low and very low birth weight infants. Retrieved from http://www.childtrends.org/?indicators=low-and-very-low-birthweight-infants
2. U.S. Department of Health and Human Services, Health Resources and Services Administration, Maternal and Child Health Bureau. (2014). The health and well-being of children: A portrait of states and the nation, 2011-2012. Retrieved from http://mchb.hrsa.gov/nsch/2011-12/health/index.html
3. Currie. J., & Lin, W. (2007). Chipping away at health: More on the relationship between income and child health. Health Affairs, 26(2), 331-44. Retrieved from http://www.princeton.edu/~jcurrie/publications/Currie_tables_galleys.pdf
4. Ladd, H. F. (2012). Education and Poverty: Confronting the Evidence, Presidential address to the Association for Public Policy Analysis and Management. Journal of Policy Analysis and Management, 31(2), 203-227. Retrieved from http://fds.duke.edu/db/attachment/1979
5. Ratcliffe, C., & McKernan, S. (2010). Childhood poverty persistence: Facts and consequences. (Urban Institute’s Brief Series, Perspectives on Low-income Working Families). Retrieved from http://www.urban.org/uploadedpdf/412126-child-poverty-persistence.pdf
6. “Poverty thresholds are used for calculating all official poverty population statistics — for instance, figures on the number of Americans in poverty each year. They are updated each year by the Census Bureau. Poverty thresholds since 1973 (and for selected earlier years) and weighted average poverty thresholds since 1959 are available on the Census Bureau’s web site. For an example of how the Census Bureau applies the thresholds to a family’s income to determine its poverty status, see “How the Census Bureau Measures Poverty” on the Census Bureau’s web site. The poverty guidelines are a simplified version of the federal poverty thresholds used for administrative purposes — for instance, determining financial eligibility for certain federal programs. They are issued each year in the Federal Register by the Department of Health and Human Services (HHS).” (http://aspe.hhs.gov/poverty/faq.cfm#thrifty)
For more information, contact:Kristie TingleCPPP Research [email protected]
Data analysis conducted and slides created by:KATIE MARTIN, CPPP’S KUHN POLICY INTERN
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