Library Index :: Welfare and Welfare Reform in the United States :: Poverty - Background, Poverty—then And Now, Median Income, Tax Relief For The Poor, How Accurate Is The "poverty Level"?

Poverty - Median Income

In its surveys, the U.S. Bureau of the Census differentiates between households and families. A "household" is an individual living alone or a group of persons living together who may or may not be related, while a "family" is composed of two or more related individuals. All families are households, but not all households are families. In 2002 there were over 111.2 million households in the United States but only 75.5 million families. (See Table 3.7.)

TABLE 3.6
Poverty status and work experience of people in families and unrelated individuals, 2001
(Numbers in thousands)

In married-couple families In families maintained by women In families maintained by men
Poverty status and work experience Total persons Husbands Wives Related children under 18 Other relatives Householder Related children under 18 Other relatives Householder Related children under 18 Other relatives Unrelated individuals
Total
All persons1 216,788 56,160 56,712 5,416 17,386 13,118 1,856 9,965 4,420 455 4,459 46,840
With labor force activity 152,300 44,872 37,186 2,273 12,524 9,720 686 6,689 3,526 159 3,083 31,582
1 to 26 weeks 14,157 1,480 3,504 1,316 2,783 789 428 1,082 192 82 306 2,195
27 weeks or more 138,143 43,392 33,682 957 9,741 8,931 258 5,607 3,334 77 2,778 29,387
With no labor force activity 64,488 11,287 19,527 3,144 4,862 3,397 1,170 3,276 894 296 1,376 15,258
At or above poverty level
All persons1 194,586 53,430 53,954 5,113 16,716 9,652 1,384 8,555 3,837 381 4,075 37,492
With labor force activity 142,995 43,390 36,317 2,214 12,280 7,710 550 6,105 3,182 145 2,942 28,161
1 to 26 weeks 11,654 1,328 3,218 1,279 2,683 293 334 881 124 78 274 1,162
27 weeks or more 131,341 42,062 33,098 935 9,597 7,417 216 5,225 3,058 67 2,669 26,999
With no labor force activity 51,591 10,040 17,637 2,898 4,436 1,941 834 2,449 655 236 1,133 9,332
Below poverty level
All persons1 22,201 2,730 2,758 304 670 3,466 472 1,410 583 75 384 9,348
With labor force activity 9,305 1,482 869 59 244 2,010 136 583 344 14 141 3,421
1 to 26 weeks 2,503 152 285 37 100 496 94 201 68 5 32 1,034
27 weeks or more 6,802 1,331 583 22 145 1,514 42 382 277 10 109 2,388
With no labor force activity 12,897 1,247 1,890 245 426 1,456 336 827 239 60 243 5,927
Rate2
All persons1 10.2 4.9 4.9 5.6 3.9 26.4 25.4 14.2 13.2 16.4 8.6 20.0
With labor force activity 6.1 3.3 2.3 2.6 2.0 20.7 19.9 8.7 9.8 9.1 4.6 10.8
1 to 26 weeks 17.7 10.2 8.1 2.8 3.6 62.8 22.0 18.6 35.3 5.9 10.5 47.1
27 weeks or more 4.9 3.1 1.7 2.3 1.5 17.0 16.2 6.8 8.3 12.4 3.9 8.1
With no labor force activity 20.0 11.1 9.7 7.8 8.8 42.9 28.7 25.2 26.8 20.4 17.7 38.8
1Data on families include persons in primary families and unrelated subfamilies.
2Number below the poverty level as a percent of the total.
Note: Data refer to persons 16 years and older. Estimates are based on Census 2000 population controls and an expanded sample and are not strictly comparable with estimates for earlier years previously published.
SOURCE: "Table 9. Persons in Families and Unrelated Individuals: Poverty Status and Work Experience, 2001," A Profile of the Working Poor, 2001, U.S. Department of Labor, Bureau of Labor Statistics, June 2003 [Online] http://www.bls.gov/cps/cpswp2001.pdf [accessed January 7, 2004]

Household Income

The median income (half the population earns less than this amount, and half earn more) for all households in 2002 was $42,409. African-American ($29,026) and Hispanic ($33,103) households had much lower median incomes than did non-Hispanic white households ($45,086) and API households ($52,626).

Family Income

In 2002 the median income for all families was $52,704. The median family income was 2.86 times the 2002 average poverty threshold of $18,400 for a family of four. Families headed by married couples of all racial and ethnic backgrounds enjoyed the greatest financial success (a median income of $61,254), with incomes 2.11 times that of female-headed households ($29,001). (See Table 3.7.)

Per Capita Income

In its annual Current Population Survey, the U.S. Census Bureau determines the per capita income in the United States. Per capita income is computed by dividing the total money income by the total population. In other words, it represents the amount of income that every man, woman, and child would receive if the nation's total earnings were divided equally among them. In 2002 the per capita income for all Americans was $22,794. The 2002 per capita incomes for different racial and ethnic groups were: non-Hispanic whites, $26,128; Asians and Pacific Islanders, $22,810; African-Americans, $15,441; and Hispanics, $13,487. Comparing the per capita income with the poverty level for a family of four in 2002 ($18,400) reveals that the poverty level for four people is less than the per capita income.

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