Poverty - Poverty—then And Now

Since the late 1950s, Americans have seen some successes and some failures in the battle against poverty. For the total population in 1959, 22.4 percent, or 39.5 million persons, lived below the poverty level. After an initial decline through the 1960s and 1970s, the poverty rate began to increase during the early 1980s, coinciding with

TABLE 3.1
Department of Health and Human Services poverty guidelines, 2003

2003 Poverty guidelines for the 48 contiguous states and the District of Columbia
Size of family unit	Poverty guideline
1	$ 8,980
2	12,120
3	15,260
4	18,400
5	21,540
6	24,680
7	27,820
8	30,960
For family units with more than 8 members, add $3,140 for each additional member. (The same increment applies to smaller family sizes also, as can be seen in the figures above.)
2003 Poverty guidelines for Alaska
Size of family unit	Poverty guideline
1	$11,210
2	15,140
3	19,070
4	23,000
5	26,930
6	30,860
7	34,790
8	38,720
For family units with more than 8 members, add $3,930 for each additional member. (The same increment applies to smaller family sizes also, as can be seen in the figures above.)
2003 Poverty guidelines for Hawaii
Size of family unit	Poverty guideline
1	$10,330
2	13,940
3	17,550
4	21,160
5	24,770
6	28,380
7	31,990
8	35,600
For family units with more than 8 members, add $3,610 for each additional member. (The same increment applies to smaller family sizes also, as can be seen in the figures above.)
SOURCE: "Annual Update of the HHS Poverty Guidelines," in Federal Register 68, No. 26 (Friday, February 7, 2003): Notices [Online] http://aspe.hhs.gov/poverty/03fedreg.pdf [accessed January 19, 2004]

a downturn in household and family incomes for all Americans. The poverty rate rose steadily until it reached an eighteen-year high of 15.2 percent in 1983, a year during which the country was climbing out of a serious economic recession. The percentage of Americans living in poverty then began dropping, falling to 12.8 percent in 1989. After that, however, the percentage increased again, reaching 15.1 percent in 1993 (39.3 million people). It then dropped to 12.7 percent in 1998 (34.5 million) and continued to drop to 11.3 percent (31.1 million) in 2000; however, because the nation's economy slowed, the poverty rate took an upturn to 34.6 million in 2002, representing 12.1 percent of the population. Figure 3.1 provides a graphic depiction of the number of poor people and the poverty rates for years 1959 through 2002.

Analysts believe the overall decline in poverty is due to both the growth in the economy and to the success of some of the antipoverty programs instituted in the late 1960s; yet not all demographic subcategories have experienced the same level of change. For example, the poverty rate of those sixty-five years of age and older has dramatically improved from 35.2 percent in 1959 to 10.4 percent in 2002. For related children under eighteen years of age in black families, however, the improvement from 65.6 percent in 1959 to 46.3 percent in 2002 shows that antipoverty programs still have not reached many people in need. Table 3.2 gives the nation's poverty rates from 1959 through 2002 for people by categories of age, race, and ethnic background.

Race and Ethnicity

Poverty rates have been consistently lower for whites than for minorities. According to the U.S. Census Bureau in Poverty in the United States: 2000 (Washington, DC, 2001), in 1959, 18.1 percent of all whites, or 28.5 million people, lived below the poverty level. By 1970 the rate declined to 9.9 percent, about where it remained for the next ten years. In 1983 the percentage of whites living in poverty reached an eighteen-year high of 12.1 percent. By 2000 it had dropped to 9.4 percent (21.3 million people); in keeping with the overall rise in the poverty rate, the number of whites in poverty in 2002 increased to 10.2 percent (23.5 million people), according to the updated Poverty in the United States: 2002 (Washington, DC, 2003).

By contrast, according to Poverty in the United States: 2000, poverty rates for African-Americans declined from 55.1 percent (9.9 million) in 1959 to 33.5 percent (7.5 million) in 1970. In 1983 rates for African-Americans were 35.7 percent, still almost triple the rate for whites. In 2000, a year in which the American economy was very strong, over one-fifth (22.1 percent, or 7.9 million) of all African-Americans were poor. This percentage was the lowest recorded poverty rate ever for African-Americans. African-American children and older persons have been particularly affected by poverty. In 2002, 31.5 percent of African-Americans under eighteen years of age and 23.6 percent of African-Americans sixty-five years or older (as opposed to 19.7 percent of African-Americans aged eighteen to sixty-four years) were poor. (See Table 3.2.) In 2002 approximately 24 percent of African-Americans (between 8.6 and 8.9 million people) were poor, according to the U.S. Census Bureau.

It was not until 1972 that the U.S. Census Bureau added the ethnicity "Hispanic" to the categories for which it regularly records statistics. That year, according to Poverty in the United States: 2000, 22.8 percent of Hispanics in the United States lived below the poverty level. Between 1972 and 1985, the number of Hispanics living below the poverty level more than doubled, from 2.4 million to 5.2 million. Over this same period, the total Hispanic FIGURE 3.1
Number and percent of people in poverty, 1959–2002
Numbers in millions, rates in percent population rose from 10.6 million to 18.1 million. (Persons of Hispanic origin can be of any race.) The poverty rate among Hispanics reached 29.9 percent in 1982 and then dropped to 26.2 percent in 1989. The poverty rate reached 30.7 percent, its highest recorded point, in 1994, then dropped to 29.4 in 1996 and 21.2 (or 7.2 million) in 2000. In 2002 a large proportion (28.6 percent) of Hispanics under eighteen years of age and about one-fifth (21.4 percent) of those sixty-five years and older were poor. (See Table 3.2.) Overall, the U.S. Census Bureau reported that 21.8 percent of all Hispanics (approximately 8.5 million people) were poor in 2002.

According to the U.S. Census Bureau, the Asian and Pacific Islander (API) poverty rate in 2002 overall was 10.3 percent (or 1.3 million people). The rate was lower than it was in 1987, the first year that the Census Bureau kept statistics on Asians and Pacific Islanders, when 16.1 percent lived below the poverty level. See Table 3.2 for the breakdown of poverty rates by different age groups among APIs.

Although a far higher percentage of African-Americans and Hispanics than whites were poor, over half of the 41.8 million people who were poor in 2002 were non-Hispanic whites. In the same year, 55.9 percent of poor Americans were non-Hispanic whites, 20.5 percent were African-Americans, 20 percent were Hispanics, and 2.8 percent were Asians and Pacific Islanders.

Age

In 2002, 16.7 percent of children under eighteen years old were poor; this was a decline of 6 percentage points from 22.7 percent in l993. The percent of those ages sixty-five and older below the poverty line declined from 12.2 percent in 1993 to 10.4 percent in 2002. (See Table 3.3.) From 1959 to 2002 the number of people sixty-five years and older living in poverty dropped significantly, from about 35 percent to 10.4 percent. (See Figure 3.2.)

In 2002 more than one-fourth of the nation's poor were either under eighteen years of age (16.7 percent) or sixty-five years of age and older (10.4 percent). In comparison to the population above the poverty level, children were overrepresented among the poor, while the elderly were underrepresented. Children made up about 35 percent of the poor even though they represented only a little more than one-fourth (25.4 percent) of the total population. People over sixty-five years old made up 12 percent of the total population in 2002 but only 10.4 percent of the poor. (See Figure 3.2 and Table 3.4.) Most observers credit Social Security for the sharp decline in poverty among the elderly.

CHILD POVERTY. The child poverty rate, at 16.7 percent of the nation's children under the age of eighteen, was over twice the poverty rate for adults (7.8 percent) in 2002. Very young children were at the greatest risk of being poor. According to the National Center for Children

TABLE 3.2
Poverty status of people by age, race, and Hispanic origin, 1959–2002
[Numbers in thousands. People as of March of the following year]

	Under 18 years						18 to 64 years			65 years and over
	All people			Related children in families
		Below poverty level			Below poverty level			Below poverty level			Below poverty level
Year and characteristic	Total	Number	Percent	Total	Number	Percent	Total	Number	Percent	Total	Number	Percent
All races
2002	72,696	12,133	16.7	71,619	11,646	16.3	178,388	18,861	10.6	34,234	3,576	10.4
2001	72,021	11,733	16.3	70,950	11,175	15.8	175,685	17,760	10.1	33,769	3,414	10.1
20001	71,741	11,587	16.2	70,538	11,005	15.6	173,638	16,671	9.6	33,566	3,323	9.9
1999r	71,685	12,280	17.1	70,424	11,678	16.6	171,146	17,289	10.1	33,377	3,222	9.7
1998	71,338	13,467	18.9	70,253	12,845	18.3	167,327	17,623	10.5	32,394	3,386	10.5
1997	71,069	14,113	19.9	69,844	13,422	19.2	165,329	18,085	10.9	32,082	3,376	10.5
1996	70,650	14,463	20.5	69,411	13,764	19.8	163,691	18,638	11.4	31,877	3,428	10.8
1995	70,566	14,665	20.8	69,425	13,999	20.2	161,508	18,442	11.4	31,658	3,318	10.5
1994	70,020	15,289	21.8	68,819	14,610	21.2	160,329	19,107	11.9	31,267	3,663	11.7
1993	69,292	15,727	22.7	68,040	14,961	22.0	159,208	19,781	12.4	30,779	3,755	12.2
1992r	68,440	15,294	22.3	67,256	14,521	21.6	157,680	18,793	11.9	30,430	3,928	12.9
1991r	65,918	14,341	21.8	64,800	13,658	21.1	154,684	17,586	11.4	30,590	3,781	12.4
1990	65,049	13,431	20.6	63,908	12,715	19.9	153,502	16,496	10.7	30,093	3,658	12.2
1989	64,144	12,590	19.6	63,225	12,001	19.0	152,282	15,575	10.2	29,566	3,363	11.4
1988r	63,747	12,455	19.5	62,906	11,935	19.0	150,761	15,809	10.5	29,022	3,481	12.0
1987r	63,294	12,843	20.3	62,423	12,275	19.7	149,201	15,815	10.6	28,487	3,563	12.5
1986	62,948	12,876	20.5	62,009	12,257	19.8	147,631	16,017	10.8	27,975	3,477	12.4
1985	62,876	13,010	20.7	62,019	12,483	20.1	146,396	16,598	11.3	27,322	3,456	12.6
1984	62,447	13,420	21.5	61,681	12,929	21.0	144,551	16,952	11.7	26,818	3,330	12.4
1983	62,334	13,911	22.3	61,578	13,427	21.8	143,052	17,767	12.4	26,313	3,625	13.8
1982	62,345	13,647	21.9	61,565	13,139	21.3	141,328	17,000	12.0	25,738	3,751	14.6
1981	62,449	12,505	20.0	61,756	12,068	19.5	139,477	15,464	11.1	25,231	3,853	15.3
1980	62,914	11,543	18.3	62,168	11,114	17.9	137,428	13,858	10.1	24,686	3,871	15.7
1979	63,375	10,377	16.4	62,646	9,993	16.0	135,333	12,014	8.9	24,194	3,682	15.2
1978	62,311	9,931	15.9	61,987	9,722	15.7	130,169	11,332	8.7	23,175	3,233	14.0
1977	63,137	10,288	16.2	62,823	10,028	16.0	128,262	11,316	8.8	22,468	3,177	14.1
1976	64,028	10,273	16.0	63,729	10,081	15.8	126,175	11,389	9.0	22,100	3,313	15.0
1975	65,079	11,104	17.1	64,750	10,882	16.8	124,122	11,456	9.2	21,662	3,317	15.3
1974	66,134	10,156	15.4	65,802	9,967	15.1	122,101	10,132	8.3	21,127	3,085	14.6
1973	66,959	9,642	14.4	66,626	9,453	14.2	120,060	9,977	8.3	20,602	3,354	16.3
1972	67,930	10,284	15.1	67,592	10,082	14.9	117,957	10,438	8.8	20,117	3,738	18.6
1971	68,816	10,551	15.3	68,474	10,344	15.1	115,911	10,735	9.3	19,827	4,273	21.6
1970	69,159	10,440	15.1	68,815	10,235	14.9	113,554	10,187	9.0	19,470	4,793	24.6
1969	69,090	9,691	14.0	68,746	9,501	13.8	111,528	9,669	8.7	18,899	4,787	25.3
1968	70,385	10,954	15.6	70,035	10,739	15.3	108,684	9,803	9.0	18,559	4,632	25.0
1967	70,408	11,656	16.6	70,058	11,427	16.3	107,024	10,725	10.0	18,240	5,388	29.5
1966	70,218	12,389	17.6	69,869	12,146	17.4	105,241	11,007	10.5	17,929	5,114	28.5
1965	69,986	14,676	21.0	69,638	14,388	20.7	(NA)	(NA)	(NA)	(NA)	(NA)	(NA)
1964	69,711	16,051	23.0	69,364	15,736	22.7	(NA)	(NA)	(NA)	(NA)	(NA)	(NA)
1963	69,181	16,005	23.1	68,837	15,691	22.8	(NA)	(NA)	(NA)	(NA)	(NA)	(NA)
1962	67,722	16,963	25.0	67,385	16,630	24.7	(NA)	(NA)	(NA)	(NA)	(NA)	(NA)
1961	66,121	16,909	25.6	65,792	16,577	25.2	(NA)	(NA)	(NA)	(NA)	(NA)	(NA)
1960	65,601	17,634	26.9	65,275	17,288	26.5	(NA)	(NA)	(NA)	(NA)	(NA)	(NA)
1959	64,315	17,552	27.3	63,995	17,208	26.9	96,685	16,457	17.0	15,557	5,481	35.2
White alone2
2002	55,703	7,549	13.6	54,900	7,203	13.1	144,694	13,178	9.1	29,980	2,739	9.1
White3
2001	56,089	7,527	13.4	55,238	7,086	12.8	143,796	12,555	8.7	29,790	2,656	8.9
20001	55,980	7,307	13.1	55,021	6,834	12.4	142,164	11,754	8.3	29,703	2,584	8.7
1999r	55,833	7,639	13.7	54,873	7,194	13.1	139,974	12,085	8.6	29,553	2,446	8.3
1998	56,016	8,443	15.1	55,126	7,935	14.4	138,061	12,456	9.0	28,759	2,555	8.9
1997	55,863	8,990	16.1	54,870	8,441	15.4	136,784	12,838	9.4	28,553	2,569	9.0
1996	55,606	9,044	16.3	54,599	8,488	15.5	135,586	12,940	9.5	28,464	2,667	9.4
1995	55,444	8,981	16.2	54,532	8,474	15.5	134,149	12,869	9.6	28,436	2,572	9.0
1994	55,186	9,346	16.9	54,221	8,826	16.3	133,289	13,187	9.9	27,985	2,846	10.2
1993	54,639	9,752	17.8	53,614	9,123	17.0	132,680	13,535	10.2	27,580	2,939	10.7

TABLE 3.2
Poverty status of people by age, race, and Hispanic origin, 1959–2002
[Numbers in thousands. People as of March of the following year]

	Under 18 years						18 to 64 years			65 years and over
	All people			Related children in families
		Below poverty level			Below poverty level			Below poverty level			Below poverty level
Year and characteristic	Total	Number	Percent	Total	Number	Percent	Total	Number	Percent	Total	Number	Percent
1992r	54,110	9,399	17.4	53,110	8,752	16.5	131,694	12,871	9.8	27,256	2,989	11.0
1991r	52,523	8,848	16.8	51,627	8,316	16.1	130,312	12,097	9.3	27,297	2,802	10.3
1990	51,929	8,232	15.9	51,028	7,696	15.1	129,784	11,387	8.8	26,898	2,707	10.1
1989	51,400	7,599	14.8	50,704	7,164	14.1	128,974	10,647	8.3	26,479	2,539	9.6
1988r	51,203	7,435	14.5	50,590	7,095	14.0	128,031	10,687	8.3	26,001	2,593	10.0
1987r	51,012	7,788	15.3	50,360	7,398	14.7	126,991	10,703	8.4	25,602	2,704	10.6
1986	51,111	8,209	16.1	50,356	7,714	15.3	125,998	11,285	9.0	25,173	2,689	10.7
1985	51,031	8,253	16.2	50,358	7,838	15.6	125,258	11,909	9.5	24,629	2,698	11.0
1984	50,814	8,472	16.7	50,192	8,086	16.1	123,922	11,904	9.6	24,206	2,579	10.7
1983	50,726	8,862	17.5	50,183	8,534	17.0	123,014	12,347	10.0	23,754	2,776	11.7
1982	50,920	8,678	17.0	50,305	8,282	16.5	121,766	11,971	9.8	23,234	2,870	12.4
1981	51,140	7,785	15.2	50,553	7,429	14.7	120,574	10,790	8.9	22,791	2,978	13.1
1980	51,653	7,181	13.9	51,002	6,817	13.4	118,935	9,478	8.0	22,325	3,042	13.6
1979	52,262	6,193	11.8	51,687	5,909	11.4	117,583	8,110	6.9	21,898	2,911	13.3
1978	51,669	5,831	11.3	51,409	5,674	11.0	113,832	7,897	6.9	20,950	2,530	12.1
1977	52,563	6,097	11.6	52,299	5,943	11.4	112,374	7,893	7.0	20,316	2,426	11.9
1976	53,428	6,189	11.6	53,167	6,034	11.3	110,717	7,890	7.1	20,020	2,633	13.2
1975	54,405	6,927	12.7	54,126	6,748	12.5	109,105	8,210	7.5	19,654	2,634	13.4
1974	55,590	6,223	11.2	55,320	6,079	11.0	107,579	7,053	6.6	19,206	2,460	12.8
1973	(NA)	(NA)	(NA)	56,211	5,462	9.7	(NA)	(NA)	(NA)	(NA)	2,698	14.4
1972	(NA)	(NA)	(NA)	57,181	5,784	10.1	(NA)	(NA)	(NA)	(NA)	3,072	16.8
1971	(NA)	(NA)	(NA)	58,119	6,341	10.9	(NA)	(NA)	(NA)	(NA)	3,605	19.9
1970	(NA)	(NA)	(NA)	58,472	6,138	10.5	(NA)	(NA)	(NA)	(NA)	4,011	22.6
1969	(NA)	(NA)	(NA)	58,578	5,667	9.7	(NA)	(NA)	(NA)	(NA)	4,052	23.3
1968	(NA)	(NA)	(NA)	(NA)	6,373	10.7	(NA)	(NA)	(NA)	17,062	3,939	23.1
1967	(NA)	(NA)	(NA)	(NA)	6,729	11.3	(NA)	(NA)	(NA)	16,791	4,646	27.7
1966	(NA)	(NA)	(NA)	(NA)	7,204	12.1	(NA)	(NA)	(NA)	16,514	4,357	26.4
1965	(NA)	(NA)	(NA)	(NA)	8,595	14.4	(NA)	(NA)	(NA)	(NA)	(NA)	(NA)
1960	(NA)	(NA)	(NA)	(NA)	11,229	20.0	(NA)	(NA)	(NA)	(NA)	(NA)	(NA)
1959	(NA)	(NA)	(NA)	(NA)	11,386	20.6	(NA)	(NA)	(NA)	(NA)	4,744	33.1
White alone, not
Hispanic2
2002	43,614	4,090	9.4	43,017	3,848	8.9	122,511	9,157	7.5	28,018	2,321	8.3
White, not Hispanic3
2001	44,095	4,194	9.5	43,459	3,887	8.9	122,470	8,811	7.2	27,973	2,266	8.1
20001	44,244	4,018	9.1	43,554	3,715	8.5	121,499	8,130	6.7	27,948	2,218	7.9
1999r	44,272	4,155	9.4	43,570	3,832	8.8	120,341	8,462	7.0	27,952	2,118	7.6
1998	45,355	4,822	10.6	44,670	4,458	10.0	120,282	8,760	7.3	27,118	2,217	8.2
1997	45,491	5,204	11.4	44,665	4,759	10.7	119,373	9,088	7.6	26,995	2,200	8.1
1996	45,605	5,072	11.1	44,844	4,656	10.4	118,822	9,074	7.6	27,033	2,316	8.6
1995	45,689	5,115	11.2	44,973	4,745	10.6	118,228	8,908	7.5	27,034	2,243	8.3
1994	46,668	5,823	12.5	45,874	5,404	11.8	119,192	9,732	8.2	26,684	2,556	9.6
1993	46,096	6,255	13.6	45,322	5,819	12.8	118,475	9,964	8.4	26,272	2,663	10.1
1992r	45,590	6,017	13.2	44,833	5,558	12.4	117,386	9,461	8.1	26,025	2,724	10.5
1991r	45,236	5,918	13.1	44,506	5,497	12.4	117,672	9,244	7.9	26,208	2,580	9.8
1990	44,797	5,532	12.3	44,045	5,106	11.6	117,477	8,619	7.3	25,854	2,471	9.6
1989	44,492	5,110	11.5	43,938	4,779	10.9	116,983	8,154	7.0	25,504	2,335	9.2
1988r	44,438	4,888	11.0	43,910	4,594	10.5	116,479	8,293	7.1	25,044	2,384	9.5
1987r	44,461	5,230	11.8	43,907	4,902	11.2	115,721	8,327	7.2	24,754	2,472	10.0
1986	44,664	5,789	13.0	44,041	5,388	12.2	115,157	8,963	7.8	24,298	2,492	10.3
1985	44,752	5,745	12.8	44,199	5,421	12.3	114,969	9,608	8.4	23,734	2,486	10.5
1984	44,886	6,156	13.7	44,349	5,828	13.1	114,180	9,734	8.5	23,402	2,410	10.3
1983	44,830	6,649	14.8	44,374	6,381	14.4	113,570	10,279	9.1	22,992	2,610	11.4
1982	45,531	6,566	14.4	45,001	6,229	13.8	113,717	10,082	8.9	22,655	2,714	12.0
1981	45,950	5,946	12.9	45,440	5,639	12.4	112,722	9,207	8.2	22,237	2,834	12.7
1980	46,578	5,510	11.8	45,989	5,174	11.3	111,460	7,990	7.2	21,760	2,865	13.2
1979	46,967	4,730	10.1	46,448	4,476	9.6	110,509	6,930	6.3	21,339	2,759	12.9
1978	46,819	4,506	9.6	46,606	4,383	9.4	107,481	6,837	6.4	20,431	2,412	11.8

TABLE 3.2
Poverty status of people by age, race, and Hispanic origin, 1959–2002
[Numbers in thousands. People as of March of the following year]

	Under 18 years						18 to 64 years			65 years and over
	All people			Related children in families
		Below poverty level			Below poverty level			Below poverty level			Below poverty level
Year and characteristic	Total	Number	Percent	Total	Number	Percent	Total	Number	Percent	Total	Number	Percent
1977	47,689	4,714	9.9	47,459	4,582	9.7	106,063	6,772	6.4	19,812	2,316	11.7
1976	48,824	4,799	9.8	48,601	4,664	9.6	104,846	6,720	6.4	19,565	2,506	12.8
1975	49,670	5,342	10.8	49,421	5,185	10.5	103,496	7,039	6.8	19,251	2,503	13.0
1974	50,759	4,820	9.5	50,520	4,697	9.3	101,894	6,051	5.9	18,810	2,346	12.5
Black alone or in
combination
2002	12,114	3,817	31.5	11,931	3,733	31.3	22,170	4,376	19.7	2,922	691	23.6
Black alone4
2002	11,275	3,645	32.3	11,111	3,570	32.1	21,547	4,277	19.9	2,856	680	23.8
Black3
2001	11,556	3,492	30.2	11,419	3,423	30.0	21,462	4,018	18.7	2,853	626	21.9
20001	11,480	3,581	31.2	11,296	3,495	30.9	21,161	3,794	17.9	2,785	607	21.8
1999r	11,488	3,813	33.2	11,260	3,698	32.8	21,518	4,000	18.6	2,750	628	22.8
1998	11,317	4,151	36.7	11,176	4,073	36.4	20,837	4,222	20.3	2,723	718	26.4
1997	11,367	4,225	37.2	11,193	4,116	36.8	20,400	4,191	20.5	2,691	700	26.0
1996	11,338	4,519	39.9	11,155	4,411	39.5	20,155	4,515	22.4	2,616	661	25.3
1995	11,369	4,761	41.9	11,198	4,644	41.5	19,892	4,483	22.5	2,478	629	25.4
1994	11,211	4,906	43.8	11,044	4,787	43.3	19,585	4,590	23.4	2,557	700	27.4
1993	11,127	5,125	46.1	10,969	5,030	45.9	19,272	5,049	26.2	2,510	702	28.0
1992r	10,956	5,106	46.6	10,823	5,015	46.3	18,952	4,884	25.8	2,504	838	33.5
1991r	10,350	4,755	45.9	10,178	4,637	45.6	18,355	4,607	25.1	2,606	880	33.8
1990	10,162	4,550	44.8	9,980	4,412	44.2	18,097	4,427	24.5	2,547	860	33.8
1989	10,012	4,375	43.7	9,847	4,257	43.2	17,833	4,164	23.3	2,487	763	30.7
1988r	9,865	4,296	43.5	9,681	4,148	42.8	17,548	4,275	24.4	2,436	785	32.2
1987r	9,730	4,385	45.1	9,546	4,234	44.4	17,245	4,361	25.3	2,387	774	32.4
1986	9,629	4,148	43.1	9,467	4,037	42.7	16,911	4,113	24.3	2,331	722	31.0
1985	9,545	4,157	43.6	9,405	4,057	43.1	16,667	4,052	24.3	2,273	717	31.5
1984	9,480	4,413	46.6	9,356	4,320	46.2	16,369	4,368	26.7	2,238	710	31.7
1983	9,417	4,398	46.7	9,245	4,273	46.2	16,065	4,694	29.2	2,197	791	36.0
1982	9,400	4,472	47.6	9,269	4,388	47.3	15,692	4,415	28.1	2,124	811	38.2
1981	9,374	4,237	45.2	9,291	4,170	44.9	15,358	4,117	26.8	2,102	820	39.0
1980	9,368	3,961	42.3	9,287	3,906	42.1	14,987	3,835	25.6	2,054	783	38.1
1979	9,307	3,833	41.2	9,172	3,745	40.8	14,596	3,478	23.8	2,040	740	36.2
1978	9,229	3,830	41.5	9,168	3,781	41.2	13,774	3,133	22.7	1,954	662	33.9
1977	9,296	3,888	41.8	9,253	3,850	41.6	13,483	3,137	23.3	1,930	701	36.3
1976	9,322	3,787	40.6	9,291	3,758	40.4	13,224	3,163	23.9	1,852	644	34.8
1975	9,421	3,925	41.7	9,374	3,884	41.4	12,872	2,968	23.1	1,795	652	36.3
1974	9,439	3,755	39.8	9,384	3,713	39.6	12,539	2,836	22.6	1,721	591	34.3
1973	(NA)	(NA)	(NA)	9,405	3,822	40.6	(NA)	(NA)	(NA)	1,672	620	37.1
1972	(NA)	(NA)	(NA)	9,426	4,025	42.7	(NA)	(NA)	(NA)	1,603	640	39.9
1971	(NA)	(NA)	(NA)	9,414	3,836	40.4	(NA)	(NA)	(NA)	1,584	623	39.3
1970	(NA)	(NA)	(NA)	9,448	3,922	41.5	(NA)	(NA)	(NA)	1,422	683	48.0
1969	(NA)	(NA)	(NA)	9,290	3,677	39.6	(NA)	(NA)	(NA)	1,373	689	50.2
1968	(NA)	(NA)	(NA)	(NA)	4,188	43.1	(NA)	(NA)	(NA)	1,374	655	47.7
1967	(NA)	(NA)	(NA)	(NA)	4,558	47.4	(NA)	(NA)	(NA)	1,341	715	53.3
1966	(NA)	(NA)	(NA)	(NA)	4,774	50.6	(NA)	(NA)	(NA)	1,311	722	55.1
1959	(NA)	(NA)	(NA)	(NA)	5,022	65.6	(NA)	(NA)	(NA)	(NA)	711	62.5
Asian alone or in
combination
2002	3,199	353	11.0	3,159	338	10.7	8,292	804	9.7	995	86	8.7
Asian alone5
2002	2,683	315	11.7	2,648	302	11.4	7,881	764	9.7	977	82	8.4

in Poverty, the United States has the highest rate of young child poverty of all Western industrialized nations.

In 2000 nearly 18 percent of children under the age of three lived in poverty, a decline from 27 percent in 1993. Nearly 45 percent of very young children living with a female householder (with no spouse present) were poor, compared to 9 percent of children under three years old living with families headed by a married couple. Poverty rates for African-American children under age three (35 percent) and Hispanic children under three (30 percent)

TABLE 3.2
Poverty status of people by age, race, and Hispanic origin, 1959–2002
[Numbers in thousands. People as of March of the following year]

	Under 18 years						18 to 64 years			65 years and over
	All people			Related children in families
		Below poverty level			Below poverty level			Below poverty level			Below poverty level
Year and characteristic	Total	Number	Percent	Total	Number	Percent	Total	Number	Percent	Total	Number	Percent
Asian and Pacific Islander3
2001	3,215	369	11.5	3,169	353	11.1	8,352	814	9.7	899	92	10.2
20001	3,294	420	12.7	3,256	407	12.5	8,500	756	8.9	878	82	9.3
1999r	3,212	381	11.9	3,178	367	11.5	7,879	807	10.2	864	96	11.1
1998	3,137	564	18.0	3,099	542	17.5	6,951	698	10.0	785	97	12.4
1997	3,096	628	20.3	3,061	608	19.9	6,680	753	11.3	705	87	12.3
1996	2,924	571	19.5	2,899	553	19.1	6,484	821	12.7	647	63	9.7
1995	2,900	564	19.5	2,858	532	18.6	6,123	757	12.4	622	89	14.3
1994	1,739	318	18.3	1,719	308	17.9	4,401	589	13.4	513	67	13.0
1993	2,061	375	18.2	2,029	358	17.6	4,871	680	14.0	503	79	15.6
1992r	2,218	363	16.4	2,199	352	16.0	5,067	568	11.2	494	53	10.8
1991r	2,056	360	17.5	2,036	348	17.1	4,582	565	12.3	555	70	12.7
1990	2,126	374	17.6	2,098	356	17.0	4,375	422	9.6	514	62	12.1
1989	1,983	392	19.8	1,945	368	18.9	4,225	512	12.1	465	34	7.4
1988r	1,970	474	24.1	1,949	458	23.5	4,035	583	14.4	442	60	13.5
1987r	1,937	455	23.5	1,908	432	22.7	4,010	510	12.7	375	56	15.0
Hispanic6
2002	13,210	3,782	28.6	12,971	3,653	28.2	23,952	4,334	18.1	2,053	439	21.4
20013	12,763	3,570	28.0	12,539	3,433	27.4	22,653	4,014	17.7	1,896	413	21.8
20001	12,399	3,522	28.4	12,115	3,342	27.6	21,734	3,844	17.7	1,822	381	20.9
1999r	12,188	3,693	30.3	11,912	3,561	29.9	20,782	3,843	18.5	1,661	340	20.5
1998	11,152	3,837	34.4	10,921	3,670	33.6	18,668	3,877	20.8	1,696	356	21.0
1997	10,802	3,972	36.8	10,625	3,865	36.4	18,217	3,951	21.7	1,617	384	23.8
1996	10,511	4,237	40.3	10,255	4,090	39.9	17,587	4,089	23.3	1,516	370	24.4
1995	10,213	4,080	40.0	10,011	3,938	39.3	16,673	4,153	24.9	1,458	342	23.5
1994	9,822	4,075	41.5	9,621	3,956	41.1	16,192	4,018	24.8	1,428	323	22.6
1993	9,462	3,873	40.9	9,188	3,666	39.9	15,708	3,956	25.2	1,390	297	21.4
1992r	9,081	3,637	40.0	8,829	3,440	39.0	15,268	3,668	24.0	1,298	287	22.1
1991r	7,648	3,094	40.4	7,473	2,977	39.8	13,279	3,008	22.7	1,143	237	20.8
1990	7,457	2,865	38.4	7,300	2,750	37.7	12,857	2,896	22.5	1,091	245	22.5
1989	7,186	2,603	36.2	7,040	2,496	35.5	12,536	2,616	20.9	1,024	211	20.6

are three times higher than the rates for white children (10 percent).

Childhood poverty is a matter of great concern because strong evidence exists that poverty can limit a child's physical and cognitive development. According to the Children's Defense Fund report The High Price of Poverty for Children of the South (May 1998):

• Poverty is a greater risk to children's overall health status than is living in a single-parent family.
• Poor children are twice as likely as nonpoor children to be born weighing too little or to suffer stunted growth.
• Poor children suffer more mental and physical disabilities.
• Poverty makes children hungry. Hungry children are more likely to be hyperactive and to have serious behavior problems. They are four times more likely to have difficulty concentrating in school.
• Poor children score lower on reading and math tests and are twice as likely to repeat a year of school as nonpoor children.
• Poor children earn 25 percent lower wages when they become young adults.

Regions

In 2002 the Midwest had the lowest poverty rate (10.3 percent) among the nation's four regions, followed by the Northeast with 10.9 percent and the West with 12.4 percent. Poverty rates were highest in the South (13.8 percent). (See Table 3.3.)

Family Status

About one in every ten families (10.4 percent) in the United States was living in poverty in 2002. Families headed by married couples had the lowest poverty rate (5.3 percent). More than a quarter (26.5 percent) of all families with a female householder (no husband present) were living in poverty, a 1.8 percent increase since 2000. (See Table 3.3.)

TABLE 3.2
Poverty status of people by age, race, and Hispanic origin, 1959–2002
[Numbers in thousands. People as of March of the following year]

	Under 18 years						18 to 64 years			65 years and over
	All people			Related children in families
		Below poverty level			Below poverty level			Below poverty level			Below poverty level
Year and characteristic	Total	Number	Percent	Total	Number	Percent	Total	Number	Percent	Total	Number	Percent
1988r	7,003	2,631	37.6	6,908	2,576	37.3	12,056	2,501	20.7	1,005	225	22.4
1987r	6,792	2,670	39.3	6,692	2,606	38.9	11,718	2,509	21.4	885	243	27.5
1986	6,646	2,507	37.7	6,511	2,413	37.1	11,206	2,406	21.5	906	204	22.5
1985	6,475	2,606	40.3	6,346	2,512	39.6	10,685	2,411	22.6	915	219	23.9
1984	6,068	2,376	39.2	5,982	2,317	38.7	10,029	2,254	22.5	819	176	21.5
1983	6,066	2,312	38.1	5,977	2,251	37.7	9,697	2,148	22.5	782	173	22.1
1982	5,527	2,181	39.5	5,436	2,117	38.9	8,262	1,963	23.8	596	159	26.6
1981	5,369	1,925	35.9	5,291	1,874	35.4	8,084	1,642	20.3	568	146	25.7
1980	5,276	1,749	33.2	5,211	1,718	33.0	7,740	1,563	20.2	582	179	30.8
1979	5,483	1,535	28.0	5,426	1,505	27.7	7,314	1,232	16.8	574	154	26.8
1978	5,012	1,384	27.6	4,972	1,354	27.2	6,527	1,098	16.8	539	125	23.2
1977	5,028	1,422	28.3	5,000	1,402	28.0	6,500	1,164	17.9	518	113	21.9
1976	4,771	1,443	30.2	4,736	1,424	30.1	6,034	1,212	20.1	464	128	27.7
1975	(NA)	(NA)	(NA)	4,896	1,619	33.1	(NA)	(NA)	(NA)	(NA)	137	32.6
1974	(NA)	(NA)	(NA)	4,939	1,414	28.6	(NA)	(NA)	(NA)	(NA)	117	28.9
1973	(NA)	(NA)	(NA)	4,910	1,364	27.8	(NA)	(NA)	(NA)	(NA)	95	24.9
rFor 1999, figures are based on 2000 census population controls. For 1992, figures are based on 1990 census population controls. For 1991, figures are revised to correct for nine omitted weights from the original March 1992 CPS file. For 1988 and 1987, figures are based on new processing procedures and are also revised to reflect corrections to the files after publication of the 1988 advance report, Money Income and Poverty Status in the United States: 1988, P-60, No. 166.
NA Not available.
1Consistent with 2001 data through implementation of Census 2000-based population controls and a 28,000 household sample expansion.
2The 2003 CPS allowed respondents to choose more than one race. White alone refers to people who reported White and did not report any other race category. The use of this single-race population does not imply that it is the preferred method of presenting or analyzing data. The Census Bureau uses a variety of approaches. Information on people who reported more than one race, such as "White and American Indian and Alaska Native" or "Asian and Black or African American," in Census 2000 is forthcoming and will be available through American Fact Finder in 2003. About 2.6 percent of people reported more than one race.
3For 2001 and earlier years, the CPS allowed respondents to report only one race group. The reference race groups for 2001 and earlier poverty data are: White, non-Hispanic White, Black, and Asian and Pacific Islander.
4Black or African American alone refers to people who reported Black or African American and did not report any other race category.
5Asian alone refers to people who reported Asian and did not report any other race category.
6Hispanics may be of any race.
Note: Prior to 1979, people in unrelated subfamilies were included in people in families. Beginning in 1979, people in unrelated subfamilies are included in all people but are excluded from people in families.
SOURCE: Bernadette D. Proctor and Joseph Dalaker, "Table A-2. Poverty Status of People by Age, Race, and Hispanic Origin: 1959 to 2002," in Poverty in the United States: 2002, U.S. Census Bureau, September 2003 [Online] http://www.census.gov/prod/2003pubs/p60-222.pdf [accessed January 3, 2004]

BY RACE. According to the U.S. Census Bureau in Poverty in the United States: 2002, in 2002 non-Hispanic whites (8 percent) had a much lower poverty rate than African-Americans (24.1 percent) or Hispanics (21.8 percent). In addition, Hispanic and African-American female heads of household are at particularly high risk of poverty. While 20 percent of non-Hispanic white families headed by a female with no husband present were living in poverty in 2002, 38.2 percent of female-headed African-American families and 36.4 percent of female-headed Hispanic families were poor. Asian single mothers had the lowest poverty rate at 15.2 percent in 2002.

States

State poverty rates vary widely from year to year and should be used with caution when ranking the states for statistical purposes. However, on average, over the years 2000 through 2002, Connecticut, Maryland, Minnesota, New Hampshire, and New Jersey had the lowest poverty rates, while Arkansas, the District of Columbia, Louisiana, Mississippi, and New Mexico had the highest rates. (See Table 3.5.)

Work Experience

The probability of a family living in poverty is influenced by three primary factors: the size of the family, the number of workers, and the characteristics of the wage earners. As the number of wage earners in a family increases, the probability of poverty declines. The likelihood of a second wage earner is greatest in families headed by married couples.

About 5.7 percent of all Americans who worked in 2001 lived in poverty, compared to 39.7 percent of those who did not work that year. Approximately 42 percent of poor persons age sixteen and older worked at least some of the year, with 74 percent of them working twenty-seven weeks or more. Overall, 70.5 percent of people sixteen years old and over worked at least some of the year, and about 64 percent worked twenty-seven weeks or more. (See Table 3.6.)

TABLE 3.3
People and families in poverty, by selected characteristics, 2001 and 2002
(Numbers in thousands)

	2001 below poverty level		2002 below poverty level		Change in poverty (2002 less 2001)*
Characteristic	Number	Percent	Number	Percent	Number	Percent
People
Total	32,907	11.7	34,570	12.1	1,663	0.4
Family status
In families	23,215	9.9	24,534	10.4	1,319	0.4
Householder	6,813	9.2	7,229	9.6	416	0.4
Related children under 18	11,175	15.8	11,646	16.3	472	0.5
Related children under 6	4,188	18.2	4,296	18.5	108	0.3
In unrelated subfamilies	466	39.8	417	33.7	−48	−6.1
Reference person	172	36.4	167	31.7	−6	−4.6
Children under 18	292	44.6	241	35.4	−51	−9.2
Unrelated individual	9,226	19.9	9,618	20.4	392	0.5
Male	3,833	17.3	4,023	17.7	190	0.4
Female	5,393	22.3	5,595	22.9	203	0.6
Age
Under 18 years	11,733	16.3	12,133	16.7	400	0.4
18 to 64 years	17,760	10.1	18,861	10.6	1,101	0.5
65 years and over	3,414	10.1	3,576	10.4	163	0.3
Nativity
Native	27,698	11.1	29,012	11.5	1,314	0.4
Foreign born	5,209	16.1	5,558	16.6	349	0.6
Naturalized citizen	1,186	9.9	1,285	10.0	99	0.1
Not a citizen	4,023	19.7	4,273	20.7	250	1.1
Region
Northeast	5,687	10.7	5,871	10.9	184	0.2
Midwest	5,966	9.4	6,616	10.3	650	0.9
South	13,515	13.5	14,019	13.8	505	0.3
West	7,739	12.1	8,064	12.4	325	0.3
Residence
Inside metropolitan areas	25,446	11.1	27,096	11.6	1,649	0.5
Inside central cities	13,394	16.5	13,784	16.7	390	0.2
Outside central cities	12,052	8.2	13,311	8.9	1,259	0.7
Outside metropolitan areas	7,460	14.2	7,474	14.2	14	–
Families
Total	6,813	9.2	7,229	9.6	416	0.4
Type of family
Married-couple	2,760	4.9	3,052	5.3	292	0.5
Female householder, no husband present	3,470	26.4	3,613	26.5	143	0.1
Male householder, no wife present	583	13.1	564	12.1	−20	−1.1
–Represents zero.
*Details may not sum to totals because of rounding.
SOURCE: Adapted from Bernadette D. Proctor and Joseph Dalaker, "Table. 2. People and Families in Poverty by Selected Characteristics: 2001 and 2002," in Poverty in the United States: 2002, U.S. Census Bureau, September 2003 [Online] http://www.census.gov/prod/2003pubs/p60-222.pdf [accessed January 3, 2004]

Most poor children live in families where one or more adults work. However, millions of working parents are not able to earn enough to lift their families out of poverty—even those who work full-time all year. In the report A Hand Up: How State Earned Income Tax Credits Help Working Families Escape Poverty in 2001 (Washington, DC: Center on Budget and Policy Priorities, 2001), Nicholas Johnson reported that in 2000 approximately 4.4 million families with children in which the parents were not elderly or disabled had incomes below the federal poverty line. Of these families, three million (69 percent) had a working parent. (See Figure 3.3.)

Education

Not surprisingly, poverty rates drop sharply as years of schooling rise. The U.S. Bureau of the Census reported that in 2002 the poverty rate was 21 percent for persons who had not completed high school, 11.1 percent for those who had graduated from high school but had not gone to college, 8.0 percent for those with some college but less than a bachelor's degree, and 4.5 percent for those with a bachelor's degree or higher.

The general relationship between education and welfare applied for all races. However, there were some large differences among the races. For example, the 2002 poverty rates for African-American and Hispanic high school graduates age twenty-five and over who had not gone to college were 22.2 percent and 14.7 percent, respectively, while white graduates had a much lower poverty rate, 9.3 percent.

FIGURE 3.2
Poverty rates by age, 1959–2002

TABLE 3.4
People with income below specified ratios of their poverty thresholds, by selected characteristics, 2002
(Numbers in thousands)

		Under 0.50		Under 1.00		Under 1.25
Characteristic	Total	Number	Percent	Number	Percent	Number	Percent
All people
Age	285,317	14,068	4.9	34,570	12.1	47,084	16.5
Under 18 years	72,696	5,047	6.9	12,133	16.7	16,230	22.3
18 to 24 years	27,438	2,259	8.2	4,536	16.5	5,816	21.2
25 to 34 years	39,243	2,087	5.3	4,674	11.9	6,285	16.0
35 to 44 years	44,074	1,614	3.7	4,087	9.3	5,531	12.6
45 to 54 years	40,234	1,321	3.3	2,999	7.5	3,985	9.9
55 to 59 years	15,470	524	3.4	1,302	8.4	1,744	11.3
60 to 64 years	11,930	472	4.0	1,263	10.6	1,711	14.3
65 years and over	34,234	745	2.2	3,576	10.4	5,780	16.9
Family status
In families	236,921	9,492	4.0	24,534	10.4	33,961	14.3
Householder	75,616	2,888	3.8	7,229	9.6	9,998	13.2
Related children under 18	71,619	4,699	6.6	11,646	16.3	15,665	21.9
Related children under 6	23,247	1,914	8.2	4,296	18.5	5,708	24.6
Unrelated individual	47,156	4,323	9.2	9,618	20.4	12,590	26.7
Male	22,685	1,940	8.6	4,023	17.7	5,099	22.5
Female	24,471	2,383	9.7	5,595	22.9	7,491	30.6
Note: Details may not sum to totals because of rounding.
SOURCE: Bernadette D. Proctor and Joseph Dalaker, "Table 5. People with Income below Specified Ratios of Their Poverty Thresholds by Selected Characteristics: 2002," Poverty in the United States: 2002, Current Population Reports, Consumer Income, U.S. Census Bureau, September 2003 [Online] http://www.census.gov/prod/2003pubs/p60-222.pdf [accessed January 3, 2004]

TABLE 3.5
Percent of people in poverty, by state, 2000, 2001, and 2002

	3-year average (2000-2002)	2-year average (2000-2001)	2-year average (2001-2002)	Change in percentage points (2001-2002 average less 2000-2001 average)*
State	Percent	Percent	Percent	Percent
United States	11.7	11.5	11.9	0.4
Alabama	14.6	14.6	15.2	0.6
Alaska	8.3	8.1	8.7	0.6
Arizona	13.3	13.2	14.1	0.9
Arkansas	18.0	17.1	18.8	1.7
California	12.8	12.6	12.8	0.2
Colorado	9.4	9.3	9.2	–
Connecticut	7.8	7.5	7.8	0.3
Delaware	8.1	7.6	7.9	0.4
District of Columbia	16.8	16.7	17.6	0.9
Florida	12.1	11.8	12.6	0.8
Georgia	12.1	12.5	12.1	−0.5
Hawaii	10.6	10.2	11.4	1.2
Idaho	11.8	12.0	11.4	−0.6
Illinois	11.2	10.4	11.5	1.1
Indiana	8.7	8.5	8.8	0.3
Iowa	8.3	7.8	8.3	0.5
Kansas	9.4	9.1	10.1	1.0
Kentucky	13.1	12.6	13.4	0.8
Louisiana	17.0	16.7	16.9	0.1
Maine	11.3	10.2	11.9	1.7
Maryland	7.3	7.3	7.3	–
Massachusetts	9.6	9.4	9.5	0.1
Michigan	10.3	9.6	10.5	0.9
Minnesota	6.5	6.5	6.9	0.4
Mississippi	17.6	17.1	18.9	1.7
Missouri	9.6	9.4	9.8	0.4
Montana	13.7	13.7	13.4	−0.3
Nebraska	9.5	9.0	10.0	1.0
Nevada	8.3	8.0	8.0	–
New Hampshire	5.6	5.5	6.1	0.6
New Jersey	7.8	7.7	8.0	0.3
New Mexico	17.8	17.7	17.9	0.2
New York	14.0	14.0	14.1	0.1
North Carolina	13.1	12.5	13.4	0.9
North Dakota	11.9	12.1	12.7	0.6
Ohio	10.1	10.3	10.1	−0.1
Oklahoma	14.7	15.0	14.6	−0.4
Oregon	11.2	11.3	11.3	–
Pennsylvania	9.2	9.1	9.5	0.4
Rhode Island	10.3	9.9	10.3	0.4
South Carolina	13.5	13.1	14.7	1.6
South Dakota	10.2	9.6	10.0	0.4
Tennessee	14.2	13.8	14.5	0.7
Texas	15.3	15.2	15.3	0.1
Utah	9.3	9.1	10.2	1.1
Vermont	9.9	9.9	9.8	−0.1
Virginia	8.7	8.1	8.9	0.8
Washington	10.8	10.8	10.8	0.1
West Virginia	16.0	15.6	16.6	1.0
Wisconsin	8.6	8.6	8.2	−0.4
Wyoming	9.5	9.7	8.8	−0.9
–Represents zero.
*Details may not sum to totals because of rounding.
SOURCE: Adapted from Bernadette D. Proctor and Joseph Dalaker, "Table 4. Percent of People in Poverty by State: 2000, 2001, and 2002," Poverty in the United States: 2002, Current Population Reports, Consumer Income, U.S. Census Bureau, September 2003 [Online] http://www.census.gov/prod/2003pubs/p60-222.pdf [accessed January 3, 2004