When the Social Security Administration (SSA) created the poverty definition in 1964, it focused on family food consumption. The U.S. Department of Agriculture (USDA) used its data about the nutritional needs of children and adults to construct food plans for families. Within each food plan, dollar amounts varied according to the total number of people in the family and the familys composition, such as the number of children within each family. The cheapest of these plans, the Economy Food Plan, was designed to address the dietary needs of families on an austere budget. Since the USDAs 1955 Food Consumption Survey showed that families of three or more people across all income levels spent roughly one-third of their income on food, the SSA multiplied the cost of the Economy Food Plan by three to obtain dollar figures for the poverty thresholds. Since the Economy Food Plan budgets varied by family size and composition, so too did the poverty thresholds. For 2-person families, the thresholds were adjusted by slightly higher factors because those households had higher fixed costs. Thresholds for unrelated individuals were calculated as a fixed proportion of the corresponding thresholds for 2-person families.

The poverty thresholds are revised annually to allow for changes in the cost of living as reflected in the Consumer Price Index (CPI-U). The poverty thresholds are the same for all parts of the country - they are not adjusted for regional, state or local variations in the cost of living. For a detailed discussion of the poverty definition, see U.S. Census Bureau, Current Population Reports, " Poverty in the United States: 1999," P-60-210.

The poverty status of families and unrelated individuals in 1999 was determined using 48 thresholds (income cutoffs) arranged in a two dimensional matrix. The matrix consists of family size (from 1 person to 9 or more people) cross-classified by presence and number of family members under 18 years old (from no children present to 8 or more children present). Unrelated individuals and 2-person families were further differentiated by the age of the reference person (RP) (under 65 years old and 65 years old and over).

To determine a person's poverty status, one compares the persons total family income with the poverty threshold appropriate for that persons family size and composition (see table below). If the total income of that persons family is less than the threshold appropriate for that family, then the person is considered poor, together with every member of his or her family. If a person is not living with anyone related by birth, marriage, or adoption, then the persons own income is compared with his or her poverty threshold.

This category includes people whose highest degree was a high school diploma or its equivalent, people who attended college but did not receive a degree, and people who received a college, university, or professional degree. People who reported completing the 12th grade but not receiving a diploma are not high school graduates.

This category includes people of compulsory school attendance age or above who were not enrolled in school and were not high school graduates. These people may be referred to as "high school dropouts." However, there is no criterion regarding when they "dropped out" of school, so they may have never attended high school.

From 1840 to 1930, the census measured educational attainment by means of a basic literacy question. In 1940, a single question was asked on highest grade of school completed. In the 1950 to 1980 censuses, a two-part question was used to construct highest grade or year of school completed. The question asked (1) the highest grade of school attended and (2) whether that grade was finished. For people who have not attended college, the response categories in the current educational attainment question should produce data that are comparable to data on highest grade completed from earlier censuses. For people who attended college, there is less comparability between years of school completed and highest degree.

Beginning in 1990, the response categories for people who have attended college were modified from earlier censuses because there was some ambiguity in interpreting responses in terms of the number of years of college completed. For instance, it was not clear whether "completed the fourth year of college," "completed the senior year of college," and "college graduate" were synonymous. Research conducted shortly before the 1990 census suggests that these terms were more distinct than in earlier decades, and this change may have threatened the ability to estimate the number of "college graduates" from the number of people reported as having completed the fourth or a higher year of college. It was even more difficult to make inferences about post-baccalaureate degrees and "Associate" degrees from highest year of college completed. Thus, comparisons of post-secondary educational attainment in the 2000 and 1990 censuses with data from the earlier censuses should be made with great caution.

Changes between 1990 and Census 2000 were slight. The two associate degree categories in 1990 were combined into one for Census 2000. "Some college, no degree" was split into two categories, "Some college credit, but less than 1 year," and "1 or more years of college, no degree." Prior to 1990, the college levels reported began with "Completed 1 year of college." Beginning in 1990, the first category was "Some college, no degree," which allowed people with less than 1 year of college to be given credit for college. Prior to 1990, they were included in "High school, 4 years." The two revised categories will accommodate comparisons with either data series and allow the tabulation of students who completed at least 1 year of college, as some data users wish. This will not change the total number who completed some college.

The category "12th grade, no diploma" was counted as high school completion or "Completed high school, 4 years" prior to 1990 and as "Less than high school graduate" in 1990 and 2000. In the 1960 and subsequent censuses, people for whom educational attainment was not reported were assigned the same attainment level as a similar person whose residence was in the same or a nearby area. In the 1940 and 1950 censuses, people for whom educational attainment was not reported were not allocated.

In censuses prior to 1990, "median school years completed" was used as a summary measure of educational attainment. Using the current educational attainment question, the median can only be calculated for groups of which less than half the members have attended college. "Percent high school graduate or higher" and "percent Bachelor's degree or higher" are summary measures that can be calculated from the present data and offer quite readily interpretable measures of differences between population subgroups.