The data on poverty status were derived from answers to the same questions as the income data, questionnaire items 32 and 33. (For more information, see the discussion under "Income in 1989.") Poverty statistics presented in census publications were based on a definition originated by the Social Security Administration in 1964 and subsequently modified by Federal interagency committees in 1969 and 1980 and prescribed by the Office of Management and Budget in Directive 14 as the standard to be used by Federal agencies for statistical purposes.
At the core of this definition was the 1961 economy food plan, the least costly of four nutritionally adequate food plans designed by the Department of Agriculture. It was determined from the Agriculture Department's 1955 survey of food consumption that families of three or more persons spend approximately one-third of their income on food; hence, the poverty level for these families was set at three times the cost of the economy food plan. For smaller families and persons living alone, the cost of the economy food plan was multiplied by factors that were slightly higher to compensate for the relatively larger fixed expenses for these smaller households.
The income cutoffs used by the Census Bureau to determine the poverty status of families and unrelated individuals included a set of 48 thresholds arranged in a two-dimensional matrix consisting of family size (from one person to nine or more persons) cross-classified by presence and number of family members under 18 years old (from no children present to eight or more children present). Unrelated individuals and two-person families were further differentiated by age of the householder (under 65 years old and 65 years old and over).
The total income of each family or unrelated individual in the sample was tested against the appropriate poverty threshold to determine the poverty status of that family or unrelated individual. If the total income was less than the corresponding cutoff, the family or unrelated individual was classified as "below the poverty level." The number of persons below the poverty level was the sum of the number of persons in families with incomes below the poverty level and the number of unrelated individuals with incomes below the poverty level.
The poverty thresholds are revised annually to allow for changes in the cost of living as reflected in the Consumer Price Index. The average poverty threshold for a family of four persons was $12,674 in 1989. (For more information, see table A below.) Poverty thresholds were applied on a national basis and were not adjusted for regional, State or local variations in the cost of living. For a detailed discussion of the poverty definition, see U.S. Bureau of the Census, Current Population Reports, Series P-60, No. 171, Poverty in the United States: 1988 and 1989.
Table A Poverty Thresholds in 1989 by Size of Family and Number of Related Children Under 18 Years |
|
Related children under 18 years |
Size of Family Unit |
Weight average thresholds |
None |
One |
Two |
Three |
Four |
Five |
Six |
Seven |
Eight or more |
One person (unrelated individual) |
$6,310 |
|
|
|
|
|
|
|
|
|
Under 65 years |
6,451 |
$6,451 |
|
|
|
|
|
|
|
|
65 years and over |
5,947 |
5,947 |
|
|
|
|
|
|
|
|
Two persons |
8,076 |
|
|
|
|
|
|
|
|
|
Householder under 65 years |
8,343 |
8,303 |
$8,547 |
|
|
|
|
|
|
|
Householder 65 years and |
|
|
|
|
|
|
|
|
|
|
over |
7,501 |
7,495 |
8,515 |
|
|
|
|
|
|
|
Three persons |
9,885 |
9,699 |
9,981 |
$9,990 |
|
|
|
|
|
|
Four persons |
12,674 |
12,790 |
12,999 |
12,575 |
$12,619 |
|
|
|
|
|
Five persons |
14,990 |
15,424 |
15,648 |
15,169 |
14,798 |
$14,572 |
|
|
|
|
Six persons |
16,921 |
17,740 |
17,811 |
17,444 |
17,092 |
16,569 |
$16,259 |
|
|
|
Seven persons |
19,162 |
20,412 |
20,540 |
20,101 |
19,794 |
19,224 |
18,558 |
$17,828 |
|
|
Fight persons |
21,328 |
22,830 |
23,031 |
22,617 |
22,253 |
21,738 |
21,084 |
20,403 |
$20,230 |
|
Nine or more persons |
25,480 |
27,463 |
27,596 |
27,229 |
26,921 |
26,415 |
25,719 |
25,089 |
24,933 |
$23,973 |