Poverty Rates Vastly Underestimated, Consumption Data Reveals Dire Situation for Single Mothers
The article shows that using consumption data instead of income data can give a better picture of how well-off poor people are. Recent trends in resources for single mothers look different when measured by consumption rather than income. Overall poverty rates and sub-group poverty rates also vary depending on whether income or consumption is used. New data quality issues like survey responses and imputation are considered. Recent research claiming that income and consumption trends are similar for disadvantaged households is flawed.