1 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

An Analysis of Poverty Through a Consumption 

Lens: Research from the U.S. Bureau of Labor 

Statistics

Jake Schild

Co-authored with Thesia Garner and Brett Matsumoto

2023 APPAM Fall Research Conference

November 11, 2023

The Measurement of Poverty: New Results 10:15 – 11:45 a.m.

CORRECTIONS MADE ON NOV 17, 2023
2 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Consumption as a Well-being Outcome: 

A Function of Resources and Processes

Available Resources

Income, in-kind 

transfers (private & 

public)

Asset (financial)

Asset (nonfinancial)

Debt (access and 

use)

Time

Processes

Skills (e.g., education, 

financial management, 

efficiency in converting 

inputs to outcomes)

Degree of resource 

allocation (power)

Circumstances (CU 

composition, disability)

Preferences

Outcomes (e.g.,)

1. Consumption

2. Health status

3. Material deprivation

4. Life satisfaction

5. Happiness
3 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Why Produce Consumption Measures?

◼ Alternative measure of well-being based on outcomes

 Supports work and recommendations 

– CNSTAT Panel An Integrated System of U.S. Household Income, Wealth, and Consumption Data and Statistics to 

Inform Policy and Research (present)

– OECD expert groups on distributions of income, consumption, and wealth (micro groups)

 Allows us to go beyond expenditures: Period of COVID-19 and consumption of home production

◼ Poverty measurement

 Supports the work of the Interagency Technical Working Group (ITWG) on Evaluating Alternative 

Measures of Poverty (2020) 

 Builds on work presented at APPAM 2022

 Follows along with the CNSTAT panel (2023) focus on consumption needs for the Principle Poverty 

Measure

❖ In addition, have presented earlier work on progressions of our measure and used in inequality and poverty at 

various venues (e.g., ASSA, SGE, OECD, CNSTAT, FESAC, JSM, SEA). See Monthly Labor Review 2022 for details 

about comprehensive consumption measure
4 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Economic Well-being at 

Consumer Unit Level

Consumption

Without 

Health 

Insurance

with Health 

Insurance

with Health 

Insurance 

Capped

Concepts of Consumption for Poverty Analysis

NOTE: None of these measures include “Education”

HI_Cap=

min(HI, 0.5*consumption with HI)
5 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Data and Methods

◼ Data

 Base is U.S. Consumer Expenditure Survey Interview, 2019 through 2022

 Assuming independent quarters 

 Supplemented with data from CPS-ASEC, MEPS Insurance Component, CMS National Health 

Expenditure Database, USDA Administrative Data, National Center for Education Statistics 

◼ Methods 

 Thresholds 

– Relative threshold based on 60% of median equivalized values 

– Anchored relative threshold, anchored to 2019 and updated using Chained CPI-U

 Poverty Statistics (Foster-Greer-Thorbecke, 1984)

– Headcount rates: percent of individuals below the poverty line

– Average poverty intensity: average poverty gap relative to the threshold (only for poor)

– Poverty severity: how poor the poorest is relative to the average poor 
6 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Moving from Expenditures to Consumption
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Quarterly Equivalized Consumption, Spending, and 

Income for 2020
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Over Time: Quarterly Equivalized Medians 

(Current Year Dollars)

NOTE: Population weighted (FINLW21); consumption does not include education.

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

2019 2020 2021 2022

Consumption w/

health

Consumption w/

health cap

Expenitures, no gift

Consumption w/o

health
9 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Poverty Analysis
10 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Poverty Rates based on Relative Threshold for Total Population: 

Consumption without vs Consumption with Health Capped

NOTE: Thresholds based on quarterly adult equivalized values; population weighted (FINLWT21*Cusize); consumption with health insurance capped at 50% of total; measures do not include education

2019

Con w/ HI Poor

No Yes

Con Poor

No 81.9% 3.2%

Yes 7.0% 7.9%

2022

Con w/ HI Poor

No Yes

Con Poor

No 82.3% 3.7%

Yes 6.6% 7.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2019 2020 2021 2022

Official SPM Consumption Consumption w/ Health Capped
11 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Consumption with Health Insurance Capped Poverty Rates for Total 

Population: Relative vs Anchored Thresholds

NOTE: Thresholds based on quarterly adult equivalized values; population weighted (FINLWT21*Cusize); consumption with health insurance capped at 50% of total; measures do not include education

2021

Anchored

No Yes

Relative

No 89.1% 0.0%

Yes 1.3% 9.6%

2022

Anchored

No Yes

Relative

No 88.9% 0.0%

Yes 2.3% 8.9% 0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2019 2020 2021 2022

Official SPM Relative Anchored
12 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Consumption with Health Insurance Capped 

Poverty Statistics for Total Population

(Anchored Thresholds)

NOTE: Thresholds based on quarterly adult equivalized values; population weighted (FINLWT21*Cusize); consumption with health insurance capped at 50% of total; measures do not include education

Year Head Count Average Intensity Severity

2019 11.1% 2.2% 0.7%

2020 10.9% 2.2% 0.7%

2021 9.6% 1.9% 0.6%

2022 8.9% 1.7% 0.6%
13 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Poverty Rate Based on Consumption with Health Insurance Capped 

by Family Type 

(Anchored Thresholds)

NOTE: Thresholds based on quarterly adult equivalized values; population weighted (FINLWT21*Cusize); consumption with health insurance capped at 50% of total; measures do not include education

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

2019 2020 2021 2022

Single Married Couple Only Single Parent

Married Couple with Children Married Couple with Other Other
14 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Average Poverty Intensity (Gap) Based on Consumption with Health 

Insurance Capped by Family Type 

(Anchored Thresholds)

NOTE: Thresholds based on quarterly adult equivalized values; population weighted (FINLWT21*Cusize); consumption with health insurance capped at 50% of total; measures do not include education

2019 Avg Poverty 

Intensity

Single 2.0%

Married 

Couple Only 0.4%

Single Parent 3.5%

Married 

Couple with 

Children

1.9%

Married 

Couple with 

Other

3.1%

Other 3.9%

Better 

off 

Worse 

off 

50

60

70

80

90

100

110

120

130

2019 2020 2021 2022

Average Intensity Relative to 2019

Single Married Couple Only

Single Parent Married Couple with Children

Married Couple with Other Other
15 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Poverty Severity Based on Consumption with Health Insurance 

Capped by Family Type 

(Anchored Thresholds)

NOTE: Thresholds based on quarterly adult equivalized values; population weighted (FINLWT21*Cusize); consumption with health insurance capped at 50% of total; measures do not include education

2019 Severity

Single 0.8%

Married 

Couple Only 0.1%

Single Parent 1.1%

Married 

Couple with 

Children

0.6%

Married 

Couple with 

Other

0.8%

Other 1.3%

Better 

off 

Worse 

off 

50

70

90

110

130

150

170

190

2019 2020 2021 2022

Severity Relative to 2019

Single Married Couple Only

Single Parent Married Couple with Children

Married Couple with Other Other
16 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Next Steps

◼ Data improvements

 Integrate CE Survey Diary data 

 Add value of home production for own consumption

 Continuing research on health insurance 

 Consider the treatment of education

◼ Research

 Impact of “shutdown” and “stay-at-home” policies on economic well-being

 Impact of COVID specific benefits on economic well-being

 Expand analysis to other subpopulations impacted by COVID

 Decompose poverty by differences within and between subgroups
17 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Contact

Jake Schild

Office of Prices and Living Conditions

Bureau of Labor Statistics

Washington, DC 20212

Schild.Jake@BLS.gov
18 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Data Sources for Current Consumption Measure

◼ CPS-ASEC (households/members): reported 

receipt of government provided in-kind 

benefits

 School meals (NSLP)

 Women, infants, and children (WIC) 

 LIHEAP (receipt and values)

◼ USDA: food assistance programs

◼ Center for Medicare and Medicaid Services 

(CMS) National Health Expenditure (NHE) 

 Medicare

 Medicaid

◼ National Health Expenditure Tables

For Most Goods and Services: 

U.S. Consumer Expenditure Survey Interview

Other In-kind Federal Government Benefits

◼ Time period: (T)Q2 to (T+1)Q1 to represent T year

◼ Interviewed up to 4 times, 3-month recall 

◼ Consumer unit (CU)

◼ Out-of-pocket spending for most goods and 

services

◼ Rental equivalence for owned shelter

◼ Rent paid & characteristics to impute market rents 

when in-kind rental assistance

◼ Stock of cars and trucks to produce flow of services

◼ Medical Expenditure Panel Survey (MEPS-IC) from 

the Agency for Healthcare Research and Quality

◼ U.S. Department of Education Statistics

College Room and Board

In-kind Employer Health Insurance Benefits
19 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Quarterly Means for 2020

Category Total 

Expenditures

Total 

Expenditures, 

excluding gifts

Consumption 

without health 

insurance

Consumption 

with health 

insurance

Consumption 

with health 

insurance capped

Quarterly Expenditures or 

Consumption $14,555 $14,386 $12,140 $16,748 $16,656 

Percent that is imputed - - 9.01% 34.05% 33.69%

Shelter $3,133 $3,114 $5,027 $5,027 $5,027 

Utilities $1,049 $1,044 $1,047 $1,047 $1,047 

Household Operations $362 $357 $309 $309 $309 

Household Furnishings $493 $480 $408 $408 $408 

Transportation $2,430 $2,404 $2,015 $2,015 $2,015 

Health $1,227 $1,225 - $4,609 $4,517 

Investments $2,440 $2,379 - - -

Other $3,423 $3,382 $3,333 $3,333 $3,333 
20 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

2A+2C Relative Thresholds

NOTE: Based on 60% of median; population weighted (FINLWT21*Cusize); consumption with health insurance capped at 50% of total; measures do not include education

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

Census Before Tax

Income

Consumption Consumption w/

Health

Consumption w/

Health Capped

2019 2020 2021 2022
21 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

2A+2C Anchored Relative Thresholds

NOTE: Anchored to 2019 relative threshold; updated using Chained CPI-U; population weighted (FINLWT21*Cusize); consumption with health insurance capped at 50% of total; measures do not include education

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

Census Before Tax

Income

Consumption Consumption w/

Health

Consumption w/

Health Capped

2019 2020 2021 2022
22 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

2 Adults with 2 Child Thresholds

Relative thresholds Anchored (2019) relative thresholds

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

Census Before

Tax Income

Consumption Consumption w/

Health

Consumption w/

Health Capped

2019 2020 2021 2022

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

Census Before

Tax Income

Consumption Consumption w/

Health

Consumption w/

Health Capped

2019 2020 2021 2022
23 — U.S. BUREAU OF LABOR STATISTICS • bls.gov

Composition of Poverty Based on Consumption with Health 

Insurance Capped by Family Type 

(Anchored Thresholds)

Distribution of Poor Distribution of Total Population

NOTE: Thresholds based on quarterly adult equivalized values; population weighted (FINLWT21*Cusize); consumption with health insurance capped at 50% of total; measures do not include education

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2019 2020 2021 2022

Other

Married Couple with

Other

Married Couple with

Children

Single Parent

Married Couple Only

Single

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%