Measuring Poverty at the State Level

Research Report

Measuring Poverty at the State Level


This study implements the modern poverty measure for Minnesota using the American Community Survey (ACS) and simulates the potential effects of alternative safety net policies on poverty. The analysis uses the TRIM3 microsimulation model to correct for survey underreporting and to add information required for this poverty measure, including near-cash benefits, taxes and nondiscretionary expenses. The alternative simulations apply new program rules and behavioral assumptions to recalculate family resources and poverty. The results show the importance of the modern poverty measure for analyzing state policies and also highlight the numerous decisions and imputations required to implement the new measure.

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