Trends in Child Poverty by Race/Ethnicity: New Evidence Using a Historical Supplemental Poverty Measure

Official poverty statistics have been criticized, however, for being based on an outdated measure of poverty (Blank, 2008; Citro and Michael, 1995). First put into use in the 1960s, the official poverty measure’s (OPM) concept of needs has been updated for inflation but still reflects the living standards, family budgets, and family structures of that time. Moreover, when tallying family resources, the OPM misses key government programs such as Food Stamps and tax credits that have expanded since the 1960s. For these reasons, the Census Bureau and the Bureau of Labor Statistics (BLS) implemented an improved “supplemental poverty measure” (SPM) in 2011 (Short 2011) for calendar years 2009 and 2010. This SPM is now released annually alongside the OPM (see Short 2015 for the latest data as of this writing), but the Census Bureau has no plans to produce the measure historically. However, historical data on levels and trends in poverty are essential for better understanding the progress the country has made since Lyndon B. Johnson’s famous declaration of the War on Poverty in the 1960s. Understanding what has been successful in the past is important for assessing what might be successful in the future for amelioration of economic disadvantage. What’s more, success and its sources may vary by race/ethnicity.

We use a historical version of the SPM to provide the first estimates of racial/ethnic differences in child poverty for the period 1970 to the present using this improved measure. We begin our analysis in 1970 because that is the first year we can reliably distinguish non-Hispanic Whites, African-Americans, and Latinos (unfortunately, data limitations prevent us from examining other groups over the long term).