Rising Poverty in the Midst of Plenty: The Case of Working-Age People with Disabilities
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Rising Poverty in the Midst of Plenty: The Case of Working-Age People with Disabilities Richard V. Burkhauser Department of Policy Analysis and Management Cornell University Andrew J. Houtenville Industrial and Labor Relations Cornell University Ludmila Rovba Analysis Group, Inc. Montreal, Canada Partial funding for the work reported in this paper came from the United States Department of Education, National Institute of Disability and Rehabilitation Research, cooperative agreement No. 1331390038. This paper does not necessarily reflect the views of the National Institute of Disability and Rehabilitation Research.
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Rising Poverty in the Midst of Plenty: The Case of Working-Age People with Disabilities. Richard V. Burkhauser Department of Policy Analysis and Management Cornell University Andrew J. Houtenville Industrial and Labor Relations Cornell University Ludmila Rovba Analysis Group, Inc. - PowerPoint PPT Presentation
Transcript of Rising Poverty in the Midst of Plenty: The Case of Working-Age People with Disabilities
Rising Poverty in the Midst of Plenty: The Case of Working-Age People with Disabilities
Richard V. BurkhauserDepartment of Policy Analysis and Management
Cornell UniversityAndrew J. Houtenville
Industrial and Labor RelationsCornell UniversityLudmila Rovba
Analysis Group, Inc.Montreal, Canada
Partial funding for the work reported in this paper came from the United States Department of Education, National Institute of Disability and Rehabilitation Research,
cooperative agreement No. 1331390038. This paper does not necessarily reflect the views of the National Institute of Disability and Rehabilitation Research.
“When you can not measure, your knowledge is meager and
unsatisfactory”—Lord Kelvin. (Chiseled on the archway of the
University of Chicago Social Science Building)
Six questions this talk will answer with respect to working-age people with
disabilities:
• What was their poverty rate in 2004?• How sensitive is this measure across data sets
and definitions of the population? • What is their relative risk of poverty? • How has their relative risk of poverty changed
over the last two major business cycles? • What explains these changes in their poverty
rate (compositional changes or underlying changes)?
• How has the compositionally adjusted change in their relative risk of poverty changed?
40,000
42,000
44,000
46,000
48,000
50,000
52,000
54,000
56,000
58,000
1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Year
Inco
me,
200
4 do
llar
s
10.0
11.0
12.0
13.0
14.0
15.0
16.0
Pove
rty
Rat
e, P
erce
nt
Median Family Income Official Poverty Rate
Figure 1: Median Family Income and Poverty Rate of Families and Persons, 1979-2005
Table 1. Relative Poverty Risk for Selected Economically Vulnerable Working-Aged Populations
Year
Total Population
(Aged 25-61)
Female/Male Ratio
Non-White/ White Ratio
With/Without Work
Limitation Ratio
1983 11.49 1.43 2.84 2.83
1993 11.23 1.45 2.97 3.33
2004 10.06 1.33 2.24 3.40
2005 9.88 1.40 2.43 3.67
Table 2: Estimated Disability Prevalence Rates for Working-Age People with Disabilities
(Men and Women, Aged 25 to 61), By Data Source
Participation Restriction
Activity Limitation Impairment
Overall Employment IADL Self-Care Mental Physical Sensory
Disability Prevalence Rates
ACS, 2003 11.9 6.9 2.9 2.0 4.0 7.5 2.7
CPS, March 2003 7.8 7.8 NA NA NA NA NA
CPS, March 2004 8.4 8.4 NA NA NA NA NA
Matched CPS 2003 and 2004 5.6 5.6 NA NA NA NA NA
Table 2: Estimated Disability Poverty Rates for Working-Age People with Disabilities
(Men and Women, Aged 25 to 61), By Data Source
Participation Restriction
Activity Limitation Impairment
Overall Employment IADL Self-Care Mental Physical Sensory
Poverty Prevalence Rates
ACS, 2003 23.7 29.6 29.7 28.9 30.8 25.0 20.8
CPS, March 2003 29.4 29.4 NA NA NA NA NA
CPS, March 2004 28.8 28.8 NA NA NA NA NA
Matched CPS 2003 and 2004 29.0 29.0 NA NA NA NA NA
Table 3: Relative Poverty Risk of Those With Disabilities by Sex, Education, Race, and Age
1983 1993 2004
Ratio Ratio Ratio
All 2.83 3.33 3.40
Men 2.96 3.86 3.78
Women 2.79 3.03 3.14
Education: < High School 1.67 1.63 1.80
Education: High School 2.43 2.67 2.89
Education: > High School 3.27 4.32 3.99
White 3.05 4.30 4.32
Nonwhite 2.20 2.20 2.55
Age: 25-44 2.79 3.07 3.23
Age: 45-61 3.56 4.68 4.25
Table 4: Decomposition of the Percentage Point Change in Poverty Rate of Those Reporting Work
Limitation, by Changes in Absolute Population Shares
Contribution to Change in the Overall Poverty Rate
1983-1993 1993-2004
Percentage Point Percentage Point
Population Share
Poverty Rate Total
Population Share
Poverty Rate Total
Total Population 0.045 2.622 2.67 -1.864 -0.922 -2.79
Table 5: Actual and Compositionally Adjusted Poverty Rates for Working-Age People With and Without
Disabilities
1983
1993
2004
Actual Poverty
Actual Poverty
Poverty Adjusted for Composition (1983 base)
Actual Poverty
Poverty Adjusted for Composition (1993 base)
Poverty Adjusted for Composition (1983 base)
With Disabilities 28.61 31.28 31.23 28.49 30.36 30.07Without Disabilities 10.10 9.40 10.01 8.37 8.48 9.12Ratio (relative poverty) 2.83
3.33 3.12 3.40 3.58 3.30
Figure 2. Trends in the Ratio of Actual and Compositionally Adjusted Relative Poverty Rates
of People With Work Limitations, 1980-2005
2.50
2.70
2.90
3.10
3.30
3.50
3.70
3.90
4.10
4.30
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Rat
io
Actual Relative Poverty Risk
Relative Poverty Risk, base population 1983
Relative Poverty Risk, base population 1993
Conclusions
• The compositionally adjusted poverty rate of working-age people with disabilities has grown over time.
• Their compositionally adjusted relative risk of poverty has grown even more over time.
• OMB should choose a method of capturing poverty rate
levels and trends of working-age people by disability status.
• Those interested in tracking their economic well-being should find a way to link longer-term CPS-based trends to those found with better data as it becomes available.
