Poverty Analysis using ASEC-CPS 2018

Author

Fernando Rios-Avila

Setup

For the following analysis, all the data process is done in the file example.do.

This do-file loads the data and creates auxiliary variables that mimic the interval censoring of the data (in this case household income). We use the brackets of income that are generally used for collecting Family income data in the monthly CPS.

Because household income is not likely to follow a conditional normal distribution, we use the log of household income percapita as the variable to be imputed. We recover the original scale of the data after imputation.

Using the brackets data, it estimates the heteroskedastic interval regression model, and then uses the intreg_mi command to obtain the imputations for the data.

The imputed data is then used to estimate Poverty Status across selected groups, using the fully observed data, and the imputed data.

run example.do

Model Specification

For imputation we assume official total income are a function of household demographics including # adults, # working adults, # children, # of ppl with higher education, #region, House ownership.

For modeling, we only the estimation of poverty headcounts by different groups groups

Poverty head count by Family Race

Fully Observed Imputed
White HH 7.351 7.315
(0.150) (0.153)
Black HH 18.70 18.63
(0.584) (0.586)
Hispanic HH 17.81 17.58
(0.500) (0.515)
Other HH 10.67 10.51
(0.563) (0.565)
Mixed Race HH 8.715 8.644
(0.506) (0.518)
Observations 73614 73614

Household Race is defined based on the overall Composition of the family. For example, a household would be categorized as Black, if all members in the family identify as Black.

Mixed raced families are those with members from different race categories.

Poverty head count by Region

Fully Observed Imputed
new england division 9.189 8.962
(0.575) (0.556)
middle atlantic division 10.10 10.04
(0.441) (0.455)
east north central division 10.20 10.14
(0.407) (0.415)
west north central division 9.601 9.469
(0.512) (0.516)
south atlantic division 10.78 10.70
(0.341) (0.344)
east south central division 11.97 11.93
(0.523) (0.529)
west south central division 12.32 12.18
(0.452) (0.452)
mountain division 9.763 9.794
(0.453) (0.489)
pacific division 9.976 9.889
(0.357) (0.368)
Observations 73614 73614

Poverty head count by Education Level

Fully Observed Imputed
12th grade, no diploma 37.31 37.40
(0.986) (1.008)
high school diploma or equivalent 17.73 17.63
(0.395) (0.398)
some college but no degree 12.82 12.80
(0.386) (0.397)
associate’s degree, occupational/vocational program 7.978 8.019
(0.557) (0.584)
associate’s degree, academic program 7.476 7.248
(0.474) (0.468)
bachelor’s degree 4.495 4.393
(0.196) (0.198)
master’s degree 3.125 2.981
(0.218) (0.211)
professional school degree 2.447 2.487
(0.479) (0.481)
doctorate degree 1.632 1.628
(0.298) (0.300)
Observations 73614 73614

The education is defined as the highest education level attained by any member within a family.