Indicators of Welfare Dependence: Annual Report to Congress, 1997. Economic Security Risk Factor 2. Poverty Transition Rates

10/01/1997

Data on poverty transitions show the extent of new entries into and exits from poverty.

Figure ECON 2. Percent of Individuals Moving into and out of Poverty Between 1992 and 1993

Figure ECON 2. Percent of Individuals Moving into and out of Poverty Between 1992 and 1993

  • While Table ECON 1 shows the percentage of people living in poverty, this measure shows both the percentage of non-poor people that moved into poverty and the percentage of poor people that moved out of poverty during the given time period.
  • In 1993, 30 percent of men age 16 to 64 moved out of poverty, compared to only 23 percent of women age 16 to 64 and 17 percent of children under 15.
  • Four percent of children who were not poor in 1992 moved into poverty in 1993, while 17 percent of children who were poor in 1992 moved out of poverty in 1993.

ECON 2. Percent of Individuals Moving into and out of Poverty Between 1992 and 1993

  Poor
to
Non-Poor
Non-Poor
to
Poor
All Persons 21.6 3.0
Racial Categories
Non-Hispanic White 27.5 2.0
Non-Hispanic Black 13.9 6.7
Hispanic 18.4 8.6
Age Categories
Children Age 0 - 5 15.3 5.2
Children Age 6 - 10 16.3 3.2
Children Age 11 - 15 20.2 3.9
Children Age 0 - 15 17.0 4.1
Women Age 16 - 64 23.4 3.0
Men Age 16 - 64 30.1 2.6
Adults Age 65 and over 15.0 2.2

Source: Unpublished data from the SIPP, 1992 panel.

  • Table ECON 2 shows that adults age 65 or older were less likely to exit poverty than either women or men age 16 to 64. Fifteen percent of the elderly poor population exited poverty between 1992 and 1993, compared to 23 percent of non-elderly adult women and 30 percent of non-elderly adult men.
  • As shown in Table ECON 2, compared to other racial groups, non-Hispanic blacks had the lowest percentage of people moving out of poverty. Fourteen percent of poor non-Hispanic blacks moved out of poverty from 1992 to 1993 compared to 28 percent of poor non-Hispanic whites and 18 percent of poor Hispanics.
  • Higher percentages of Hispanics entered poverty in 1993 (nearly 9 percent), compared to non-Hispanic whites (2 percent) and non-Hispanic blacks (7 percent).