Indicators of Welfare Dependence: Annual Report to Congress, 2007. Economic Security Risk Factors (ECON)

07/31/2007

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The first group includes eight measures associated with economic security. This group encompasses five measures of poverty, as well as measures of child support receipt, food insecurity, and lack of health insurance. The tables and figures illustrating measures of economic security are labeled with the prefix ECON throughout this chapter.

Poverty measures are important predictors of dependence, because families with fewer economic resources are more likely to be dependent on means-tested assistance. In addition, poverty and other measures of deprivation, such as food insecurity, are important to assess in conjunction with the measures of dependence outlined in Chapter II.

Reductions in caseloads and dependence can reduce poverty, to the extent that such reductions are associated with greater work activity and higher economic resources for former welfare families. However, if former welfare families are left with fewer economic resources, reductions in welfare caseloads may not lead to decreases in poverty.

Several aspects of poverty are examined in this chapter. Those that can be updated annually using the Current Population Survey include: overall poverty rates (ECON 1); the percentage of individuals in deep poverty (ECON 2), and poverty rates using alternative definitions of income (ECON 3 and 4). The chapter also includes data on the length of poverty episodes or spells (ECON 5).

This chapter also includes data on child support collections (ECON 6), which can play an important role in reducing dependence on government assistance and thus serve as a predictor of dependence. Household food insecurity (ECON 7) is an important measure of deprivation that, although correlated with general income poverty, provides an alternative measure of tracking the incidence of material hardship and need, and how it may change over time. Finally, health insurance (ECON 8) is tied to the income level of the family, and may be a precursor to future health problems among adults and children.

  • Economic Security Risk Factor 1. Poverty Rates

    • Figure ECON 1. Percentage of Persons in Poverty, by Age: 1959-2005

      Figure ECON 1. Percentage of Persons in Poverty, by Age: 1959-2005

      Source: U.S. Census Bureau, “Income, Poverty, and Health Insurance Coverage in the United States: 2005,” Current Population
      Reports      , Series P60-231, and data published online at http://www.census.gov/hhes/www/poverty.html.

      • The official poverty rate was 12.6 percent in 2005. The percentage of persons living in poverty in 2005 was below the poverty rates experienced during all of the 1980s and most of the 1990s.
      • Children under 18 had a poverty rate of 17.6 percent in 2005, down slightly from 17.8 percent in 2004. As in past years, the child poverty rate is considerably higher than the overall poverty rate.
      • The poverty rate for the elderly (persons ages 65 and over) was 10.1 percent in 2005, up slightly from 9.8 in 2004. This was a percentage point below the 11.1 percent rate for adults ages 18-64 and far lower than poverty rate of children, as shown in table ECON 1.

      Table ECON 1. Percentage of Persons in Poverty, by Age and Marital Status: Selected Years

      Calendar
      Year      		 Related Children All Persons
      Ages 0-5 Ages 6-17 Total Under 18 1 18 to 64 65 & over Married Families Female Householder 3

      1 All persons under 18 include related children (own children, including stepchildren and adopted children, plus all other children in the household who are related to the householder by birth, marriage, or adoption), unrelated individuals under 18 (persons who are not living with any relatives), and householders or spouses under age 18.

      2 In 1959-1987, persons in “Married Families” include a small number of persons in male-headed families with no spouse present. In 1988, the first year for which we have separate data for these families, poor persons in male-headed families with no spouse present comprised just over 8 percent of the combined total in both groups of persons below the poverty level.

      3 No spouse present.

      Source: U.S. Census Bureau, “Income, Poverty, and Health Insurance Coverage in the United States: 2005,” Current Population
      Reports      , Series P60-231, and data published online at http://www.census.gov/hhes/www/poverty.html.
      1959 NA NA 22.4 27.3 17.0 35.2 18.2 2 49.4
      1963 NA NA 19.5 23.1 NA NA 14.9 2 47.7
      1966 NA NA 14.7 17.6 10.5 28.5 10.3 2 39.8
      1969 15.3 13.1 12.1 14.0 8.7 25.3 7.4 2 38.2
      1973 15.7 13.6 11.1 14.4 8.3 16.3 6.0 2 37.5
      1976 17.7 15.1 11.8 16.0 9.0 15.0 6.4 2 37.3
      1979 17.9 15.1 11.7 16.4 8.9 15.2 6.3 2 34.9
      1980 20.3 16.8 13.0 18.3 10.1 15.7 7.4 2 36.7
      1981 22.0 18.4 14.0 20.0 11.1 15.3 8.1 2 38.7
      1982 23.3 20.4 15.0 21.9 12.0 14.6 9.1 2 40.6
      1983 24.6 20.4 15.2 22.3 12.4 13.8 9.3 2 40.2
      1984 23.4 19.7 14.4 21.5 11.7 12.4 8.5 2 38.4
      1985 22.6 18.8 14.0 20.7 11.3 12.6 8.2 2 37.6
      1986 21.6 18.8 13.6 20.5 10.8 12.4 7.3 2 38.3
      1987 22.3 18.3 13.4 20.3 10.6 12.5 7.2 2 38.1
      1988 21.8 17.5 13.0 19.5 10.5 12.0 6.6 37.2
      1989 21.9 17.4 12.8 19.6 10.2 11.4 6.7 35.9
      1990 23.0 18.2 13.5 20.6 10.7 12.2 6.9 37.2
      1991 24.0 19.5 14.2 21.8 11.4 12.4 7.2 39.7
      1992 25.7 19.4 14.8 22.3 11.9 12.9 7.7 38.5
      1993 25.6 20.0 15.1 22.7 12.4 12.2 8.0 38.7
      1994 24.5 19.5 14.5 21.8 11.9 11.7 7.4 38.6
      1995 23.7 18.3 13.8 20.8 11.4 10.5 6.8 36.5
      1996 22.7 18.3 13.7 20.5 11.4 10.8 6.9 35.8
      1997 21.6 18.0 13.3 19.9 10.9 10.5 6.4 35.1
      1998 20.6 17.1 12.7 18.9 10.5 10.5 6.2 33.1
      1999 18.4 15.7 11.9 17.1 10.1 9.7 5.9 30.5
      2000 17.8 14.7 11.3 16.2 9.6 9.9 5.5 27.9
      2001 18.2 14.6 11.7 16.3 10.1 10.1 5.7 28.6
      2002 18.5 15.3 12.1 16.7 10.6 10.4 6.1 28.8
      2003 19.8 15.9 12.5 17.6 10.8 10.2 6.2 30.0
      2004 20.0 16.0 12.7 17.8 11.3 9.8 6.4 30.5
      2005 20.0 15.7 12.6 17.6 11.1 10.1 5.9 31.1

       

  • Economic Security Risk Factor 2. Deep Poverty Rates

    • Figure ECON 2. Percentage of Total Population below 50, 100 and 125 Percent of Poverty Level 1975-2005

      Figure ECON 2. Percentage of Total Population below 50, 100 and 125 Percent of Poverty Level 1975-2005

      Source: U.S. Census Bureau, “Income, Poverty, and Health Insurance Coverage in the United States: 2005,” Current Population Reports, Series P60-231, and data published online at http://www.census.gov/hhes/www/poverty.html.

      • The percentage of the population in “deep poverty” (with incomes below 50 percent of the federal poverty level) was 5.4 percent in 2005, compared to an overall poverty rate of 12.6 percent. Only about 4 percent of the population was “near-poor” (had incomes at or above 100 percent but below 125 percent of the federal poverty level).
      • In general, the percentage of the population with incomes below 50 percent of the poverty threshold has followed a pattern that reflects the trend in the overall poverty rate, as shown in Figure ECON 2. The percentage of people below 50 percent of poverty rose in the late 1970s and early 1980s, but then, after falling slightly, rose to a second peak in 1993. The rates for 100 percent of poverty and 125 percent of poverty followed a somewhat similar pattern with more pronounced peaks and valleys.
      • Over the past two decades, the proportion of the poverty population in “deep poverty” has increased. From a low of 28 percent of the poverty population in 1976, this population rose to just over 43 percent in 2005 up slightly from 2004.
      • The total number of poor people in 2005 was 37 million, as shown in Table ECON 2. While similar to the previous year, this number was 2.3 million lower than the peak of 39.3 million in 1993.

      Table ECON 2. Number and Percentage of Total Population below 50, 75, 100 and 125 Percent of Poverty Level: Selected Years

      Year Total Population (thousands) Below 50 Percent Below 75 Percent Below 100 Percent Below 125 Percent
      Number (thousands) Percent Number (thousands) Percent Number (thousands) Percent Number (thousands) Percent

      Note: The number of persons below 50 percent and 75 percent of poverty for 1969 are estimated based on the distribution of
      persons below 50 percent and 75 percent for 1969 taken from the 1970 decennial census.

      Source: U.S. Census Bureau, “Income, Poverty, and Health Insurance Coverage in the United States: 2005,” Current Population
      Reports      , Series P60-231, and data published online at http://www.census.gov/hhes/www/poverty.html; also 1970 Census of
      Population, Volume 1, Social and Economic Characteristics      , Table 259.
      1959 176,600 NA NA NA NA 39,500 22.4 54,900 31.1
      1961 181,300 NA NA NA NA 39,600 21.9 54,300 30.0
      1963 187,300 NA NA NA NA 36,400 19.5 50,800 27.1
      1965 191,400 NA NA NA NA 33,200 17.3 46,200 24.1
      1967 195,700 NA NA NA NA 27,800 14.2 39,200 20.0
      1969 199,500 9,600 4.8 16,400 8.2 24,100 12.1 34,700 17.4
      1971 204,600 NA NA NA NA 25,600 12.5 36,500 17.8
      1973 208,500 NA NA NA NA 23,000 11.1 32,800 15.8
      1975 210,900 7,700 3.7 15,400 7.3 25,900 12.3 37,100 17.6
      1976 212,300 7,000 3.3 14,900 7.0 25,000 11.8 35,500 16.7
      1977 213,900 7,500 3.5 15,000 7.0 24,700 11.6 35,700 16.7
      1978 215,700 7,700 3.6 14,900 6.9 24,500 11.4 34,100 15.8
      1979 222,900 8,600 3.8 16,300 7.3 26,100 11.7 36,600 16.4
      1980 225,000 9,800 4.4 18,700 8.3 29,300 13.0 40,700 18.1
      1981 227,200 11,200 4.9 20,700 9.1 31,800 14.0 43,800 19.3
      1982 229,400 12,800 5.6 23,200 10.1 34,400 15.0 46,600 20.3
      1983 231,700 13,600 5.9 23,600 10.2 35,300 15.2 47,000 20.3
      1984 233,800 12,800 5.5 22,700 9.7 33,700 14.4 45,400 19.4
      1985 236,600 12,400 5.2 22,200 9.4 33,100 13.6 44,200 18.7
      1986 238,600 12,700 5.3 22,400 9.4 32,400 14.0 44,600 18.7
      1987 241,000 12,500 5.2 21,700 9.0 32,200 13.4 43,100 17.9
      1988 243,500 12,700 5.2 21,400 8.8 31,700 13.0 42,600 17.5
      1989 246,000 12,000 4.9 20,700 8.4 31,500 12.8 42,600 17.3
      1990 248,600 12,900 5.2 22,600 9.1 33,600 13.5 44,800 18.0
      1991 251,200 14,100 5.6 24,400 9.7 35,700 14.2 47,500 18.9
      1992 256,500 15,500 6.1 26,200 10.2 38,000 14.8 50,500 19.7
      1993 259,300 16,000 6.2 27,200 10.5 39,300 15.1 51,900 20.0
      1994 261,600 15,400 5.9 26,400 10.1 38,100 14.5 50,500 19.3
      1995 263,700 13,900 5.3 24,500 9.3 36,400 13.8 48,800 18.5
      1996 266,200 14,400 5.4 24,800 9.3 36,500 13.7 49,300 18.5
      1997 268,500 14,600 5.4 24,200 9.0 35,600 13.3 47,800 17.8
      1998 271,100 13,900 5.1 23,000 8.5 34,500 12.7 46,000 17.0
      1999 276,200 12,900 4.7 21,800 7.9 32,800 11.9 45,000 16.3
      2000 278,900 12,600 4.5 20,500 7.4 31,100 11.3 43,600 15.6
      2001 281,500 13,400 4.8 22,000 7.8 32,900 11.7 45,300 16.1
      2002 285,300 14,100 4.9 23,100 8.1 34,600 12.1 47,100 16.5
      2003 287,700 15,300 5.3 24,500 8.5 35,900 12.5 48,700 16.9
      2004 290,600 15,700 5.4 25,000 8.6 37,000 12.7 49,700 17.1
      2005 293,100 15,900 5.4 25,200 8.6 37,000 12.6 49,300 16.8

       

  • Economic Security Risk Factor 3. Experimental Poverty Measures

    • Figure ECON 3. Percentage of Persons in Poverty Using Various Experimental Poverty Measures by Age: 2004

      Figure ECON 3. Percentage of Persons in Poverty Using Various Experimental Poverty Measures by Age: 2004

      Source: U.S. Census Bureau, “The Effects of Government Taxes and Transfers on Income and Poverty: 2004,”, available online at http://www.census.gov/Press-Release/www/releases/archives/income_wealth/..., and unpublished CPS data from the U.S. Census Bureau.

      • Three experimental measures of poverty (developed by the Census Bureau in response to the recommendation of a 1995 panel of the National Academy of Sciences) yield poverty rates that are similar to the official poverty measure overall, but differ by age and other characteristics. For more information on the definition of these measures see note for Table ECON 3a.
      • Experimental measures generally show lower poverty rates among children than the official measure, partly because they take into account non-cash benefits that many children receive. Conversely, experimental measures show higher rates of poverty among the elderly than the official measure, in part due to the inclusion of certain out-of-pocket health costs in these measures.
      • All three alternative measures shown in Figure Econ 3 do not take into account geographic adjustments (NGA) in housing costs; the measures can be calculated with geographic adjustment (GA), as shown in Tables ECON 3a and 3b. See note to Table ECON 3a.

      Table ECON 3a. Percentage of Persons in Poverty Using Various Experimental Poverty Measures, by Race/Ethnicity and Age: 2004

          No Geographic Adjustment Geographic Adjustment
        Official Alternative 1 (MSI-NGA) Alternative 2 (MIT-NGA) Alternative 3 (CMB-NGA) Alternative 1 (MSI-GA) Alternative 2 (MIT-GA) Alternative 3 (CMB-GA)

      Note: These experimental poverty measures implement changes recommended by a 1995 NAS panel, including: counting noncash income as benefits; subtracting from income certain work-related, health and child care expenses; and adjusting poverty thresholds for family size and geographic differences in housing costs. The three alternative measures are similar, except that each account for medical out-of-pocket expenses (MOOP) differently. The first alternative (“MOOP subtracted from income” or MSI) subtracts out-of-pocket medical expenses from income. The second alternative, (“MOOP in the threshold” or MIT) increases the poverty thresholds to take MOOP expenses into account. The third measure, CMB for combined methods, combines attributes of the previous two measures. Each of the three measures is calculated with and without accounting for geographic adjustments (GA and NGA).

      Persons of Hispanic ethnicity may be of any race. Beginning in 2002, estimates for Whites and Blacks are for persons reporting a single race only. Persons who reported more than one race are included in the total for all persons but are not shown under any race category. Due to small sample size, American Indians/Alaska Natives, Asians and Native Hawaiians/Other Pacific Islanders are included in the total for all persons but are not shown separately.

      Source: U.S. Census Bureau, “Alternative Poverty Estimates in the United States: 2004,” Current Population Reports, Series P60-227, available at http://www.census.gov/prod/2005pubs/p60-227.pdf , and unpublished CPS data from the U.S. Census Bureau.
      All Persons 12.7 12.7 13.1 13.3 12.5 13.0 13.3
      Racial/Ethnic Categories
      Non-Hispanic White 8.7 9.4 9.5 9.8 8.7 8.8 9.1
      Non-Hispanic Black 24.7 22.1 22.9 23.1 21.3 22.0 22.4
      Hispanic 21.9 20.2 21.7 21.2 22.8 25.3 24.7
      Age Categories
      Children Ages 0-17 17.8 14.1 15.2 14.8 13.9 15.3 14.9
      Adults Ages 18-64 11.3 11.5 12.1 12.0 11.4 12.1 12.0
      Adults Ages 65 and over 9.8 15.9 13.7 16.9 15.4 13.1 16.3

      Table ECON 3b. Percentage of Persons in Poverty Using Various Experimental Poverty Measures 1999-2004

        1999 2000 2001 2002 2003 2004
      See above for note and source.
      Official Measure 11.9 11.3 11.7 12.1 12.5 12.7
      No Geographic Adjustment of Thresholds            
      Medical Costs Alternative 1 (MSI-NGA) 12.2 12.1 12.4 12.4 12.4 12.7
      Medical Costs Alternative 2 (MIT-NGA) 12.8 12.7 12.8 13.0 12.8 13.1
      Medical Costs Alternative 3 (CMB-NGA) 12.9 12.8 13.0 13.0 13.0 13.3
      Geographic Adjustment of Thresholds            
      Medical Costs Alternative 1 (MSI-GA) 12.1 12.0 12.3 12.3 12.3 12.5
      Medical Costs Alternative 2 (MIT-GA) 12.7 12.5 12.7 12.8 12.7 13.0
      Medical Costs Alternative 3 (CMB-GA) 12.8 12.6 12.9 12.9 12.9 13.3

       

  • Economic Security Risk Factor 4. Poverty Rates with Various Means-tested Benefits Included

    • Figure ECON 4. Percentage of Total Population in Poverty with Various Means-Tested Benefits Added to Total Cash Income: 1979-2005

      Figure ECON 4. Percentage of Total Population in Poverty with Various Means-Tested Benefits Added to Total Cash Income: 1979-2005

      Source: Unpublished tabulations from the Current Population Survey, Annual Social and Economic Supplement, 1980-2006,
      analyzed by the Congressional Budget Office.

      • The official poverty rate – the definition of which includes means-tested cash assistance (primarily TANF and SSI) in addition to pre-tax cash income and social insurance – was 12.6 percent in 2005, as shown in the bold line with empty boxes in Figure ECON 4. Without cash welfare, the 2005 poverty rate would be 13.3 percent, as shown by the top line in the figure above.
      • Adding other non-cash, public assistance benefits to this definition has the effect of lowering the percentage of people who have incomes below the official poverty line. Including the value of food and housing benefits in total income reduces the poverty rate to 11.2 percent in 2005.
      • When income is defined as including the Earned Income Tax Credit (EITC) and federal taxes, the percentage of the total population in poverty decreases to 10.3 percent in 2005. Federal taxes and tax credits have had a net effect of reducing poverty rates following the EITC expansions in 1993 and 1995.
      • The combined effect of means-tested cash assistance, food and housing benefits, EITC and taxes was to reduce the poverty rate in 2005 by 3.0 percentage points, as shown in Table ECON 4. Net reductions in poverty rates were somewhat lower during the recession of the early 1980s, and somewhat higher in the mid-1990s, largely due to expansions in the EITC.

      Table ECON 4. Percentage of Total Population in Poverty with Various Means-Tested Benefits Added to Total Cash Income: Selected Years (DATA EMBARGOED)

        1983 1986 1989 1992 1995 1998 2000 2002 2004 2005

      Note: The four measures of income are as follows: (1) “Cash Income Plus All Social Insurance” is earnings and other private cash income, plus social security, workers compensation and other social insurance programs. It does not include means-tested cash transfers; (2) “Plus Means-Tested Cash Assistance” shows the official poverty rate, which takes into account means-tested assistance, primarily AFDC/TANF and SSI; (3) “Plus Food and Housing Benefits” shows how poverty would be lower if the cash value of food and housing benefits were counted as income; and (4) “Plus EITC and Federal Taxes” is the most comprehensive poverty rate shown. EITC refers to the refundable Earned Income Tax Credit, which is always a positive adjustment to income whereas federal payroll and income taxes are a negative adjustment. The fungible value of Medicare and Medicaid is not included.

      Source: Unpublished tabulations from the Current Population Survey, Annual Social and Economic Supplement, 1984-2006, analyzed by the Congressional Budget Office.
      Cash Income Plus All Social Insurance 16.0 14.5 13.8 15.6 14.9 13.5 12.0 12.8 13.5 13.3
         Plus Means-Tested Cash Assistance 15.2 13.6 12.8 14.5 13.8 12.7 11.3 12.1 12.7 12.6
         Plus Food and Housing Benefits 13.7 12.2 11.2 12.9 12.0 11.3 10.1 10.9 11.5 11.2
         Plus EITC and Federal Taxes 14.7 13.1 11.8 13.0 11.5 10.4 9.5 10.0 10.5 10.3
      Reduction in Poverty Rate 1.3 1.4 2.0 2.6 3.4 3.1 2.5 2.8 3.0 3.0

       

  • Economic Security Risk Factor 5. Poverty Spells

    • Figure ECON 5. Percentage of Poverty Spells for Individuals Entering Poverty during the 1993-1995 and 2001-2003 Periods, by Length of Spell

      Figure ECON 5. Percentage of Poverty Spells for Individuals Entering Poverty during the 1993-1995 and 2001-2003 Periods, by Length of Spell

      Source: Unpublished tabulations from the Survey of Income and Program Participation, 1993 and 2001 panels.

      • About half of all poverty spells that began between 2001 and 2003 ended within four months, and 77 percent ended within one year. Only 15 percent of all such spells were longer than 20 months, as shown in Table ECON 5a.
      • Spells of poverty that began between 1993 and 1995 were similar to those between 2001 and 2003; 47 percent ended within four months and 16 percent were longer than 20 months.
      • Poverty spells among adults ages 65 and older were more likely to last longer than 20 months (21 percent) than spells among other age groups, as shown in Table ECON 5a.

      Table ECON 5a. Percentage of Poverty Spells for Individuals Entering Poverty during the 2001-2003 Period, by Length of Spell, Race/Ethnicity and Age

        Spells <=4 Months Spells 5-12 Months Spells 13-20 Months Spells >20 Months

      Note: Spell length categories are mutually exclusive. Spells separated by only 1 month are not considered separate spells. Due to the length of the observation period, actual spell lengths for spells that lasted more than 20 months cannot be observed.

      Persons of Hispanic ethnicity may be of any race. Due to small sample size, American Indians/Alaska Natives, Asians and Native Hawaiians/Other Pacific Islanders are included in the total for all persons but are not shown separately.

      Source: Unpublished tabulations from the Survey of Income and Program Participation, 2001 panel.
      All Persons 49.2 27.7 7.7 15.5
      Racial/Ethnic Categories
      Non-Hispanic White 52.3 27.1 7.1 13.5
      Non-Hispanic Black 42.1 27.4 9.4 21.1
      Hispanic 45.7 29.7 7.8 16.8
      Age Categories
      Ages 0-5 Years 48.0 29.6 8.3 14.2
      Ages 6-10 Years 48.0 28.5 7.7 15.8
      Ages 11-15 Years 50.3 27.8 8.5 13.4
      Women Ages 16-24 49.4 28.6 7.6 14.4
      Men Ages 16-64 Years 52.0 28.3 7.6 12.1
      Adults Ages 65 Years and over 47.7 23.7 7.4 21.2

      Table ECON 5b. Percentage of Poverty Spells for Individuals Entering Poverty during the Selected Time Periods, by Length of Spell and Panel

        Spells <=4 Months Spells 5-12 Months Spells 13-20 Months Spells >20 Months
      Source: Unpublished tabulations from the Survey of Income and Program Participation, 1993, 1996 and 2001 panels.
      1993 – 1995 47.3 28.1 8.9 15.7
      1996 – 1999 51.3 29.0 8.3 11.4
      2001 – 2003 49.2 27.7 7.7 15.5

       

  • Economic Security Risk Factor 6. Child SUPPORT

    • Figure ECON 6. Child Support Collections Received by Families, by Receipt of IV-D Services and Other Assistance (Billions of 2003 Dollars): 1993-2003

      ECONOMIC SECURITY RISK FACTOR 6. CHILD SUPPORT

      Source: Unpublished tabulations from the Current Population Survey, Child Support Supplement, 1994-2004.

      • In 2003 families reported receiving $25.6 billion in child support payments from nonresident parents. This amount represents current year support received for a twelvemonth period and does not include amounts paid for prior periods (arrearages) or amounts retained by the federal and state government to recoup welfare costs. Total child support collections have increased by 24 percent since 1993, after adjusting for inflation.
      • The amount of payments received by families who also received AFDC/TANF cash assistance at some point in the year has declined, from $3.1 billion in 1993 (in inflationadjusted dollars) to $2.6 billion in 2003. This partly reflects the decline in the AFDC/TANF caseloads. In addition, some states no longer “pass-through” any payments to families receiving TANF. Prior to the enactment of PRWORA in 1996, states were required to pass-through the first $50 of any child support collected.
      • Child support payments to families who did not receive TANF, but received another form of public assistance (SSI, food stamps, Medicaid or housing assistance) increased significantly between 1993 and 2003, from $2.1 to $5.3 billion (in 2003 dollars). This group of families includes former TANF recipients, as well as families at risk of turning to cash assistance. The increased collections for this group more than offset the decline in payments to TANF families.
      • The total amount reported received by families through the child support enforcement system (Title IV-D of the Social Security Act) was $16.2 billion, or 63 percent of all child support payments received by families, as shown in Table ECON 6.
        Collections (billions) Total (percent)
      Current $ Constant 03$

      Note: AFDC/TANF families are families who have reported receiving cash assistance for any month during the 12-month period.  Therefore, not all the child support reported received was necessarily received while the family received cash assistance. Data limitations do not allow a monthby- month breakdown.

      Families receiving SSI, food stamps, Medicaid or housing assistance are limited to families not receiving AFDC/TANF.

      Families receiving services through the IV-D system are estimated according to the methodology described in technical appendices to the ASPE-published report Characteristics of Families Using Title IV-D Services in 1999 and 2001, available at: http://aspe.hhs.gov/hsp/CSEChar04/index.htm and previous reports. Due to a slight change in methodology, estimates for 1993 through 2001 differ slightly from estimates in previously published reports.

      Source: Unpublished tabulations from the Current Population Survey, Child Support Supplement, 1994-2004.
      2001 Receiving Title IV-D Child Support Services and:      
          TANF 2.6 2.6 10
          Food Stamps, SSI, Medicaid or Housing 5.3 5.3 21
          Child Support Services Only 8.3 8.3 32
          Subtotal Families Receiving IV-D Services 16.2 16.2 63
      Not Receiving IV-D Child Support Services 9.4 9.4 37
      Total Families 25.6 25.6 100
      2001 Receiving Title IV-D Child Support Services and:      
          TANF 1.5 1.6 7
          Food Stamps, SSI, Medicaid or Housing 3.7 3.8 16
          Child Support Services Only 8.3 8.6 36
          Subtotal Families Receiving IV-D Services 13.5 14.0 59
      Not Receiving IV-D Child Support Services 9.4 9.8 41
      Total Families 22.9 23.8 100
      1999 Families Receiving Title IV-D Child Support Services and:      
          TANF 1.7 1.9 8
          Food Stamps, SSI, Medicaid or Housing 2.9 3.2 14
          Child Support Services Only 6.7 7.5 34
          Subtotal IV-D Families 11.3 12.5 56
      Families Not Receiving IV-D Child Support Services 8.8 9.7 44
      Total Families 20.1 22.2 100
      1997 Families Receiving Title IV-D Child Support Services and:      
          AFDC/TANF 2.5 2.9 12
          Food Stamps, SSI, Medicaid or Housing 2.8 3.2 14
          Child Support Services Only 5.9 6.8 29
          Subtotal IV-D Families 11.2 12.8 55
      Families Not Receiving IV-D Child Support Services 9.3 10.7 45
      Total Families 20.6 23.5 100
      1995 Families Receiving Title IV-D Child Support Services and:      
          AFDC 2.4 2.9 12
          Food Stamps, SSI, Medicaid or Housing 2.0 2.4 10
          Child Support Services Only 6.7 8.1 34
          Subtotal IV-D Families 11.1 13.3 56
      Families Not Receiving IV-D Child Support Services 8.8 10.5 44
      Total Families 19.9 23.8 100
      1993 Families Receiving Title IV-D Child Support Services and:      
          AFDC 2.5 3.1 15
          Food Stamps, SSI, Medicaid or Housing 1.7 2.1 10
          Child Support Services Only 4.7 5.9 28
          Subtotal IV-D Families 8.8 11.0 53
      Families Not Receiving IV-D Child Support Services 7.7 9.7 47
      Total Families 16.5 20.7 100

       

  • Economic Security Risk Factor 7. Food Insecurity

    • Figure ECON 7. Percentage of Households Classified by Food Security Status: 2005

      Figure ECON 7. Percentage of Households Classified by Food Security Status: 2005

      Source: U.S. Department of Agriculture, Economic Research Service, Household Food Security in the United States, 2005.

      • Many American households (89 percent) were food secure in 2005 – that is, showed little or no evidence of concern about food supply or reduction in food intake.
      • The prevalence of very low food security in 2005 was estimated to be 3.9 percent. During the twelve months ending in December 2005, one or more members of these households experienced reduced food intake and normal eating patterns disrupted as a result of financial constraints. An additional 7 percent of households experienced food insecurity, during the twelve months ending in December 2004. Food insecurity would be lower if measured over a monthly basis.
      • Poor households and female-headed households have higher rates of very low food security (13.5 and 8.7 percent, respectively) than the 3.9 percent rate among the general population, as shown in Table ECON 7a.
      • The percentage of households with food insecurity has decreased between 2004 and 2005 (11.9 and 11.0 percent, respectively). This reverses a five year trend, as shown in Table ECON 7b.

      Table ECON 7a. Percentage of Households Classified by Food Security Status and Selected Characteristics: 2005

          Food Insecurity
        Food Secure All Low Very Low

      Note: Food secure households had consistent access to enough food for active, healthy lives for all household members at all times during the year. Households with very low food security reported reduced food intake of some household members and their normal eating patterns were disrupted because of the lack of money and other resources. Households with low food security obtained enough food to avoid substantial disruptions in eating patterns and food intake, using a variety of coping strategies, such as eating less varied diets, participating in Federal food assistance programs, or getting emergency food from community food pantries or emergency kitchens. Spouses are not present in the Female-Headed and Male-Headed household categories.

      Race and ethnicity categories for households are determined by the race and ethnicity of the reference person for the household. Persons of Hispanic ethnicity may be of any race. Beginning in 2002, estimates for Whites and Blacks are for persons reporting a single race only. Persons who reported more than one race are included in the total for all persons but are not shown under any race category. Due to small sample size, American Indians/Alaska Natives, Asians and Native Hawaiians/Other Pacific Islanders are included in the total for all persons but are not shown separately.

      Source: U.S. Department of Agriculture, Economic Research Service, Household Food Security in the United States, 2005. Data are from the Current Population Survey, Food Security Supplement.
      All Households 89.0 11.0 7.0 3.9
      Racial/Ethnic Categories
      Non-Hispanic White 91.8 8.2 5.2 2.9
      Non-Hispanic Black 77.6 22.4 13.8 8.6
      Hispanic 82.1 17.9 12.6 5.3
      Households, by Age
      Households with Children under 6 83.3 16.7 12.9 3.9
      Households with Children under 18 84.4 15.6 11.6 4.1
      Households with Elderly 94.0 6.0 4.2 1.8
      Household Categories      
      Married-Couple Households 90.1 9.9 7.6 2.3
      Female-Headed Households 69.2 30.8 22.2 8.7
      Male-Headed Households 82.1 17.9 12.4 5.5
      Household Income-to-Poverty Ratio
      Under 1.00 64.0 36.0 22.4 13.5
      Under 1.30 66.8 33.2 20.6 12.6
      Under 1.85 71.7 28.3 17.7 10.6
      1.85 and over 94.8 5.2 3.6 1.7

      Table ECON 7b. Percentage of Households Classified by Food Security Status: 1998-2005

          Food Insecurity
        Food Secure All Low Very Low
      Source: U.S. Department of Agriculture, Economic Research Service, Household Food Security in the United States, 2005.
      1998 88.2 11.8 8.1 3.7
      1999 89.9 10.1 7.1 3.0
      2000 89.5 10.5 7.3 3.1
      2001 89.3 10.7 7.4 3.3
      2002 88.9 11.1 7.6 3.5
      2003 88.8 11.2 7.7 3.5
      2004 88.1 11.9 8.0 3.9
      2005 89.0 11.0 7.0 3.9

       

  • Economic Security Risk Factor 8. Lack of Health Insurance

    • Figure ECON 8. Percentage of Persons without Health Insurance, by Income: 2005

      Figure ECON 8. Percentage of Persons without Health Insurance, by Income: 2005

      Source: Unpublished tabulations from the Current Population Survey, Annual Social and Economic Supplement, 2006.

      • Poor persons were almost twice as likely as all persons to be without health insurance in 2005 (31 percent compared to 16 percent). While the ratio varied across categories, persons with family income at or below the poverty line were more likely to be without health insurance regardless of race/ethnicity, gender, educational attainment, age or family status.
      • Hispanics were the ethnic group least likely to have health insurance in 2005, among both the general population and those with incomes below the poverty line. Hispanic individuals were three times more likely to be uninsured than non-Hispanic white individuals.
      • Among all persons, education levels were inversely related to health insurance coverage. However, among poor persons, there was less variation in insurance coverage rates across education levels than there was among all persons, as shown in Figure ECON 8.
      • As shown in Table ECON 8, more than half of poor people ages 25 to 34 were without health insurance. Among the general population, individuals ages 18 to 24 were the most likely to be without health insurance.
      • Among all persons, individuals in married families were more likely to have health insurance than those in female or male-headed households. People in poor married families, however, were less likely to have insurance than those in poor female or male-headed families, as shown in Table ECON 8.

      Table ECON 8. Percentage of Persons without Health Insurance, by Income and Selected Characteristics: 2005

        All Persons Poor Persons

      Note: "Poor persons" are defined as those with total family incomes at or below the federal poverty threshold. Health insurance rates for the education categories include only adults age 18 and over.

      Persons of Hispanic ethnicity may be of any race. Beginning in 2002, estimates for Whites and Blacks are for persons reporting a single race only. Persons who reported more than one race are included in the total for all persons but are not shown under any race category. Due to small sample size, American Indians/Alaska Natives, Asians and Native Hawaiians/Other Pacific Islanders are included in the total for all persons but are not shown separately. Some of the race categories presented for ECON 8 have been changed slightly from prior year reports to provide more internal consistency throughout this report; in reports prior to 2006, the race categories for “Black” and “White” included people of Hispanic origin.

      Source: Unpublished tabulations from the Current Population Survey, Annual Social and Economic Supplement, 2006.
      All Persons 15.9 31.0
       
      Men 17.2 33.3
      Women 14.5 29.3
           
      Non-Hispanic White 11.3 26.6
      Non-Hispanic Black 19.3 26.3
      Hispanic 32.7 42.5
       
      Not a High School Graduate 30.1 38.4
      High School Graduate, No College 20.3 39.0
      College Graduate 8.3 32.4
       
      Ages 17 and under 11.2 19.0
          Ages 5 and under 10.8 16.8
          Ages 6-11 10.2 17.9
          Ages 12-17 12.6 22.9
       
      Ages 18-24 30.6 45.9
      Ages 25-34 26.4 50.9
      Ages 35-44 18.8 45.8
      Ages 45-54 15.3 37.5
      Ages 55-64 13.6 29.1
       
      Under 65 years 17.9 34.0
      Ages 65 and over 1.3 3.9
       
      Persons in Married-Couple Families 12.3 33.8
      Persons in Female-Headed Families 22.2 25.5
      Persons in Male-Headed Families 25.6 29.1
      Unrelated Individuals 19.7 33.6

       

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Data Sources and StatisticsCaseload Trends and DynamicsIndicatorsEconomic Support and EmploymentWelfare/ Welfare Reform/TANFPoverty and MeasurementReport on Welfare Indicators and Risk Factors/Indicators of Welfare DependencePoverty, Income, and AssetsPoverty and Income DynamicsWelfare, Work, and Self-SufficiencyWelfare Data
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