DOI: 10.3886/e208441v1
title: Bridging the Gap for ALICE: Charitable Organizations Acting Amid Rising Inflation and Further Solutions Using AI

description: Abstract — Nationwide, nearly 37.9 million U.S. households fall into the Asset Limited, Income Constrained, Employed (ALICE) category. These households earn above the Federal Poverty Line but below the ALICE Household Survival Budget, making them ineligible for many public assistance programs. Nonprofit organizations like United Way and Feeding America have developed tailored assistance programs to support ALICE households. This study utilizes data from ALICE reports, U.S. Census data, and tools such as the U.S. Bureau of Labor Statistics Data Retrieval Tools and the Federal Reserve Bank of Atlanta’s Policy Rules Database to analyze the challenges faced by ALICE households. Additionally, data from the Integrated Public Use Microdata Series - Current Population Survey (IPUMS CPS) is examined using Microsoft Excel’s Pivottable to quantify the impact of nonprofit programs through the Household Rasch Food Security Score (FSRASCH) metric. The analysis highlights a significant gap in the number of ALICE households receiving assistance, attributed to inadequate access to information about available programs. To address this, AskALICE, an AI chatbot, is proposed. Developed using Yellow.ai’s Orchestrator LLM, AskALICE provides an accessible, centralized solution to inform ALICE households about eligibility and available assistance programs. By leveraging various data tables, assistance program information, and machine learning capabilities, AskALICE aims to bridge the information gap and enhance economic stability for millions of ALICE households. This study underscores the importance of accessible information in improving support for the ALICE population and proposes a practical solution with significant implications for economic stability.
description: To address the research question and analyze the impact of nonprofit efforts, we assessed data using the Household Rasch Food Security Scale (FSRASCH). For this analysis, data from the Integrated Public Use Microdata Series Current Population Survey (IPUMS CPS) was utilized. This comprehensive data project provides integrated microdata from the Current Population Survey (CPS), a monthly survey conducted by the U.S. Census Bureau and the Bureau of Labor Statistics. It gathers detailed information on employment, unemployment, earnings, demographics, and various social and economic indicators from households across the United States.<br><br>While over 500 variables were available, many lacked sufficient data points for meaningful analysis. The sample selection ranged from 1962 to 2024, with the specific sample years depending on the variables selected. Key variables analyzed included the Household Rasch Food Security Score (FSRASCH, ranging from 0-14 and corresponding to U.S. Department of Agriculture food security categories), Household Serial Number (SERIAL), Survey Year (YEAR), Month (MONTH), Annual Social and Economic Supplement Household Weight (ASECWTH; preselected), Annual Social and Economic Supplement Weight (ASECWT), and Flag for ASEC (ASECFLAG; preselected).<br><br>To focus specifically on the ALICE population, we selected the Total Household Income (HHINCOME) and Employment Status (EMPSTAT) variables. ALICE households, which have incomes above the Federal Poverty Level (FPL) but below the ALICE Household Survival Budget, were targeted by setting HHINCOME values between the FPL and the ALICE Household Survival Budget. The EMPSTAT variable was used to identify employed ALICE households by filtering for the code “10” or “At work.”
description: mail questionnaire; on-site questionnaire; web-based survey;