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Office of Survey Methods Research
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Published Year: 2005
Survey/Program(s): Inequality, Welfare and Poverty: Theory and Measurement, Research on Economic Inequality, Vol. 9, John A. Bishop and Yoram Amiel, eds
Catalog: Economic Working Paper
WP Number: WP-379
Publication Status / Disposition: See Inequality, Welfare and Poverty: Theory and Measurement, Research on Economic Inequality, Vol. 9, John A. Bishop and Yoram Amiel, eds., 2003, pp. 191-243.
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Personal Assessments of Minimum Income and Expenses: What Do They Tell Us about Minimum Living Thresholds and Equivalence Scales?
Abstract
Subjective minimum income (MIQ) and minimum spending (MSQ) are the study focus. Basic Needs Module (1995) data from the U.S. Survey of Income and Program Participation are analyzed. A regression intersection approach is used to estimate household thresholds. MIQ thresholds are higher than MSQ thresholds. Both are higher than U.S. official poverty thresholds, and thresholds based on a National Academy of Sciences (NAS) methodology. Subjective threshold based equivalence scales imply greater economies of scale than those in the other two measures but are similar to behavioral scales. This finding suggests that families make trade-offs to meet their minimum needs.