New Census definition of poverty behind the rise of poverty in the US?

While media outlets have spread the recent news from the Census Bureau that poverty has increased in the United States, some conservatives question whether this is a true change or reflects a change in the measurement of poverty:

The new Census measure suggests that the ranks of the poor – at 49 million – are 3 million larger than previously thought. The increase comes in the new way poverty is measured. The new Census report for the first time includes government subsidies and benefits such as food stamps as a part of household income, but it also factors in rising costs, such as health-care expenses. The result creates a new poverty line and a new view of who in the US is poor.

The new threshold for poverty for family of four, for example, is $24,343, as opposed to $22,113. And the revision reveals greater poverty trends among Asians, Hispanics, whites, and the elderly, and declining poverty for blacks and children, who tend to be greater beneficiaries of food stamps…

Sociologists say the new numbers give greater nuance to the portrait of poverty in the US, highlighting the degree to which government programs are keeping struggling Americans afloat. Critics counter the numbers are engineered precisely to make government assistance appear indispensable and to pave the way for a broader redistribution of American wealth toward the poor…

The Census changes are the first revisions to how the poverty rate is calculated since 1963. Since then, it has been gauged solely by cash income per household. But the new figures give a larger sense of what impact government spending has on poverty, says Timothy Smeeding, an economist at the University of Wisconsin in Madison.

Can’t really say I’m surprised that these figures are politicized. But, then again, the measurement of poverty has been a contentious topic for decades.

Disagreement on whether there are 7 billion people on earth just yet

There have been a number of recent stories about how the world’s population has reached 7 billion. Interestingly, not everyone agrees that this has happened yet:

According to United Nations demographers, 6,999,999,999 other Earthlings potentially felt the same way on Monday when the world’s population topped seven billion. But if you’d rather go by the United States Census Bureau’s projections, you’ve got some breathing room. The bureau estimates that even with the world’s population increasing by 215,120 a day, it won’t reach seven billion for about four months.

How do the dueling demographic experts reconcile a difference, as of Monday, of 28 million, which is more than all the people in Saudi Arabia?

They don’t.

“No one can know the exact number of people on the globe,” Gerhard Heilig, chief of the population estimates and projections section of the United Nations Population Division, acknowledges.

Even the best individual government censuses have a margin of error of at least 1 percent, he said, which would translate in the global aggregation to “a window of uncertainty of six months before or six months after Oct. 31.” An error margin of even as little as 2 percent would mean that Monday’s estimate of seven billion actually was 56 million off (which is more people than were counted in South Africa).

Figuring this out is not an easy task. It requires a central group to tabulate results from all of the countries around the world. Could there be a difference in the reliability and validity of the results across nations? For example, can we trust population counts from honed operations in the United States and other Western nations more than counts from Third World countries? (I wish the article went into this: how accurate are population figures from different countries? How big might the margins of errors be?) I’ve seen this before when doing some research in graduate school on suicide figures that the United Nations has collected – in the period I was looking at, roughly 1950 to 1970, some countries didn’t report, some had rougher estimates, and countries could have different definitions about what constitutes a suicide. Absolute population counts should be more straight forward but I imagine there could be a number of complications.

Will we get another round of news stories when the Census Bureau says we have hit 7 billion? I wonder if the perceived global authority of the United Nations versus that of the Census Bureau plays a role. For example, did the New York Times report the 7 billion figure as front-page news and then print this caveat story later in the news section?

A final note: the story ends by suggesting the two estimates are not that far off. If we could be so lucky that all of our estimates have only a 1% margin of error, science would benefit greatly. But it is a reminder that official figures are estimates, not 100% counts of social phenomenon.

US “White alone” population grows as more Hispanics label themselves as white

The Census Bureau has changed their racial categories over the years. The change made in the 2000 Census regarding Hispanics now leads to an interesting finding: more Hispanics are labeling themselves “white alone.”

The shift is due to recent census changes that emphasize “Hispanic” as an ethnicity, not a race. While the U.S. government first made this distinction in 1980, many Latinos continued to use the “some other race” box to establish a Hispanic identity. In a switch, the 2010 census forms specifically instructed Latinos that Hispanic origins are not races and to select a recognized category such as white or black.

The result: a 6 percent increase in white Americans as tallied by the census, even though there was little change among non-Hispanic whites. In all, the number of people in the “white alone” category jumped by 12.1 million over the last decade to 223.6 million. Based on that definition, whites now represent 72 percent of the U.S. population and account for nearly half of the total population increase since 2000…

Some demographers say the broadened white category in 2010 could lead to a notable semantic if not cultural shift in defining race and ethnicity. Due to the impact of Hispanics, the nation’s fastest-growing group, the Census Bureau has previously estimated that whites will become the minority in the U.S. by midcentury. That is based on a definition of whites as non-Hispanic, who are now at 196.8 million…

“What’s white in America in 1910, 2010 or even 2011 simply isn’t the same,” said Robert Lang, sociology professor at the University of Nevada-Las Vegas, citing the many different groups of European immigrants in the early 20th century who later became known collectively as white. He notes today that could mean a white Anglo-Saxon Protestant in upstate New York or Jews and Italians in the lowest East side of Manhattan.

Fascinating – we have heard for some time now that within four or so decades, the percentage of whites within the United States would drop under 50%. But if more people see themselves as white, then it might be some time before this comes to pass.

I would be very interested to see who exactly has changed their self-identification from Hispanic to white. (We could also raise the question of whether those who categorize themselves as white are treated as white by others.) The article suggests it is second or third generation Hispanics and this would fit common sociological models: it is about at that point when immigrants assimilate more with the dominant group. If this is the case, does this suggest some widening gaps between Hispanics who have been in the United States longer versus those who are more recent immigrants?

What does this mean for debates about immigration? Implicit in some of these debates is the idea that Hispanic immigrants are not assimilating enough, hence a call for “English first” and limiting immigration. But if Hispanics are following a fairly typical American model where it takes a bit of time for new immigrants to become accepted as and/or see themselves as white, then more people can rest assured.

Sociologists join the Census Bureau Scientific Advisory Committee

While sociologists may not be terribly influential on the whole within the American government, there is at least one area where they are quite involved: the Census Bureau (see an earlier story here).

U.S. Census Bureau Director Robert Groves has named 10 new members and a chairwoman to the Census Bureau’s Scientific Advisory Committee, which provides advice on the design and implementation of Census Bureau programs.

In addition to the director being a sociologist, of the 11 new members (out of 20 total), 5 are sociologists, 3 are statisticians, and the other three have different backgrounds.

When the Bureau director has not been a sociologist, does this mean the Census Bureau and this particular committee had fewer sociologists involved?

Are there any other posts within the government that sociologists hold and then also have the ability to appoint other sociologists to certain positions?

More bad economic figures: median household income down, poverty up

The effects of the economic crisis are reflected in two key updated figures just released by the US Census Bureau:

Data released by the Census Bureau today showed the proportion of people living in poverty climbed to 15.1 percent last year from 14.3 percent in 2009, and median household income declined 2.3 percent. The number of Americans living in poverty was the highest in the 52 years since the Census Bureau began gathering that statistic. Those figures may have worsened in recent months as the economy weakened…

The ranks of people in poverty increased to 46.2 million from 43.6 million. The last time the poverty rate reached 15.1 percent was in 1993. It climbed to 15.2 percent in 1983. Median household income in 2010 was $49,445, down from $50,599 the year before…

The income figures declined even as the U.S. economy expanded 3 percent in 2010. Growth has slowed this year to an annual rate of less than 1 percent, raising concern that the financial struggles of families will continue to worsen and hamper the recovery…

It was the third consecutive annual increase in the poverty rate, a trend that won’t reverse itself without “concerted action” on the part of policy makers, said Melissa Boteach, who leads a campaign to reduce poverty at the Center for American Progress, a Washington-based research group with ties to the Obama administration.

I would love to hear politicians talk about this ahead of the 2012 elections and to do so in ways that go beyond typical “political speak.” Talking about taxes and jobs might make some sense: they have an effect on incomes and poverty rates and every politicians loves to promise more jobs. However, there are other factors involved as well and talking about taxes and jobs means that the conversation never really turns to these indicators but only stays on “safe” ground.

UPDATE 9/13/11 3:20 PM: Here is some more data on the topic, including time-series charts that give some perspective on poverty rates and median incomes by race.

New American homes might be smaller but are still bigger and nicer than the past

Some commentators have taken the US Census data that says new American homes are smaller than they were at the 2007 peak as evidence that the McMansion era is over and Americans will live in smaller homes in the future. While it may be difficult to make predictions about the future (and Americans still have large homes compared to world standards), there is another way to look at the data: the new houses of 2010 are much bigger and nicer than new homes several decades ago.

According to the data, the average new, single-family home built in 2010 was 2,392 square feet. That’s down somewhat from a McMansion-inflated high of 2,521 square feet in 2007, but still up significantly from three decades ago.

In 1980, the average new home was just 1,740 square feet, according to the Census.

Our homes also have gotten a lot more comfortable. For example, in 1980, 63 percent of new homes had central air conditioning. Last year, 88 percent of them did.

In 1980, more than one-quarter of all homes built had 1.5 bathrooms or less. Last year, just 8 percent of houses had such a small number of bathrooms.

This is quite a change from 1980, suggesting that homes have changed quite a bit in the span or just one or two generations.

Questions that come to mind when considering this historical change:

1. Would those who suggest American homes will get smaller in the future suspect that homes will go back to 1980 sizes by 2040?

2. Does anyone expect that Americans will give up amenities, such as multiple bathrooms, on the way to having smaller homes?

3. If the answer to the first two questions is no, what might the new home of 2040 look like? A little bit smaller, say 2,000 square feet, but packed with features?

Path for sociology PhDs: official demographers

Amidst conversations that graduate programs could provide students more help in pursuing non-academic positions, I was reminded of this career path that sociologists can pursue: demography within the public sector.

Steve Murdock, the former head of the U.S. Census Bureau, will be the keynote speaker at the annual general assembly of the Golden Crescent Regional Planning Commission on Tuesday.

Murdock, now a sociology professor at Rice University, was also the first official state demographer for Texas.

He was named one of the 50 most influential Texans by Texas Business in 1997 and as one of the 25 most influential persons in Texas by Texas Monthly in 2005.

According to Murdock’s CV, he has spent much of his career in government, working at the Texas State Data Center, serving as Texas’ first state demographer, and heading the US Census Bureau in 2008 and 2009. This position also seems to have led to some notoriety. How many states have official demographers?

Between Murdock and his successor at the US Census Bureau, Robert Groves, the Census Bureau seems like a good non-academic place for sociology PhDs to land. I wonder how many current and past employees have sociology backgrounds.

More difficulty with housing vacancy data

I’ve written about this before but here is some more evidence that one should be careful in looking at housing vacancy data:

In early 2009 the Richmond, Virginia press wrote numerous articles after quarterly HVS data on metro area rental vacancy rates “showed” that the rental vacancy rate in the Richmond, Virginia metro area in the fourth quarter of 2008 was 23.7%, the highest in the country. This shocked local real estate folks, including folks who tracked rental vacancy rates in apartment buildings in the area. The Central Virginia Apartment Association, e.g., found that the rental vacancy rate based on a survey of 52 multi-family properties in the Richmond, VA metro area was around 8% — above a more “normal” 5%, but no where close to 23.7%. And while the HVS attempts to measure the overall rental vacancy rate (and not just MF apartments for rent), the data seemed “whacky.”

When I talked to Census folks back then, they said that there quarterly metro area vacancy rates were extremely volatile and had extremely high standard errors, and that folks should focus on annual data.

However, “annual average” data from the HVS showed MASSIVELY different rental vacancy rates in Richmond, Virginia than did the American Community Survey, which also produces estimates of the vacancy rate in the overall rental market…

There are several other MSAs where the HVS rental vacancy rates just look plain “silly.” Some Census analysts agree that the HVS MSA data aren’t reliable, and even that several state data aren’t reliable, but, well, er, the national data are probably “ok” – which they are not.

If you want to read more on the issue, there are a number of links at the bottom of the story.

If the estimates are so far off from other estimates generally regarded as being reliable like the American Community Survey or the decennial Census, it would look like a new system is needed to calculate the quarterly vacancy rates.

I wonder how much these figures could hurt a particular community. Take the case of Richmond: if data suggests the vacancy rate is the highest in the country even though it is not, is this simply bad publicity or would it actually affect decisions made by residents, businesses, and local governments?

Except more communities to challenge 2010 Census counts

Amidst an economic crisis that has also affected many municipal budgets, expect more communities to appeal the 2010 Census counts:

Cities have two years to contest their counts under the Census Bureau’s appeals process, which began this month…

In recent decades, the peak for challenges was 6,600, or 17 percent of all U.S. jurisdictions, in 1990, when the census missed four million people, including five percent of all blacks and Hispanics.

In 2000, roughly 1,200 jurisdictions, or 3 percent, contested the count. The net change due to census challenges that year was just 2,700 people.

Apart from the challenges, analysts later determined the 2000 census had an overcount of 1.3 million people, due mostly to duplicate counts of more affluent whites with multiple residences. About 4.5 million people were ultimately missed, mostly blacks and Hispanics.

Interestingly, the article suggests that while government dollars are behind these challenges, it is also about the “psychological impact” on civic pride. I wonder who exactly will appeal: St. Louis, Chicago, and a host of other Rust Belt cities lost population and New York City didn’t have the population increase that was expected. Since budgets are tight everywhere, could we even get appeals from places like Houston which experienced sizable growth?

It would also be interesting to hear how exactly the Census Bureau adjusts these figures based on subsequent analyses of overcounts and undercounts. This is a reminder that Census figures are not perfect even as many things, including many social science studies based on population proportions calculated in the Census, are based on these figures. I am not suggesting that the Census figures are wrong but rather that it is a very complicated process that is bound to be tweaked some after the first figures are released.

Exactly how many American homes are vacant?

Two bloggers have a disagreement about how many vacant homes there are in the United States. Check out the debate and the comments below.

The moral of the story: one still needs to interpret statistics and what exactly they are measuring. The different between 11% and 2% is quite a lot: the first figure suggests 1 out of 10 housing units are vacant while the second figure suggests it is 1 out of 50. If you look at Table 1 of this Census Bureau release regarding housing figures from Quarter 4, it looks like the vacancy rate is 2.7%. But there may be confusion based on Table 3 which suggests the vacancy for all housing units is roughly 11% for year-round units. And later in the release, page 11 of the document, gives the formula for the vacancy calculation and an explanation: “The homeowner vacancy rate is the proportion of the homeowner inventory that is vacant for sale.”

There are some other figures of note in this document. Table 4 shows that the homeownership rate is at 66.5%, down from a peak of 69.2% in the fourth quarter of 2004. (It is interesting to note that this rate peaked a couple of years before the housing market is popularly thought to have gone downhill. What happened between Q4 2004 and the start of the larger economic crisis? Table 7 has homeownership rates by race: the white rate has dropped 1.1% since 1Q 2007 while Blacks and Latinos have seen bigger drops (3.2% and 3.3%).