Total DC Poverty Rate Ticks Down Again (Barely). Rates for Blacks Rise.

September 15, 2016

CORRECTION: The overall poverty rate change for DC falls within the margin of error. A preview table I saw indicated it didn’t. But I should have verified.

The Census Bureau has taken to blasting out all its major poverty reports in rapid-fire succession. So we now have the results of the American Community Survey — not a report in the usual sense, but a huge number of online tables.

They cover a wide range of topics. And the ACS sample is much larger than what the Bureau uses for its two other annual reports. So we can get reasonably reliable figures for states and smaller jurisdictions.

I’ve again dug into a few tables for the District of Columbia — mainly those most directly related to poverty. We could, I suppose, take heart from another year of progress. But it’s modest and mixed. Both the extent of poverty in the city — and related inequalities — remind us how much remains to be done.

Poverty and Deep Poverty Rates for DC Residents Still High

About 110,380 District residents — 17.3% — lived in poverty last year. The new rate is just 0.4%* lower than the rate reported for 2014. It’s 2.6% higher than the new ACS national rate — and rates for all but eight states.

It’s also nearly 1% higher than the local rate for 2007, just before the recession set in. The population has grown since then. So the seemingly small rate difference means that the District is now home to about 18,600 more poor people. And they’re very poor indeed, for reasons I’ll touch on below.

Roughly 58,700 District residents — 9.2% of the total — lived in deep poverty, i.e., had incomes less than half the maximum set by the poverty threshold the Census Bureau uses for a household like theirs.

The new rate is perhaps 0.1% lower than the rate for 2014 — in other words, basically the same. It too is higher than the rate for the nation as a whole.

Child Poverty Rate Still Far Higher Than Overall Rate

The child poverty rate has consistently exceeded the rate for the population as a whole, both in the District and nationwide. The local rate last year was 25.6%. Like the overall rate, it’s 0.4% lower than the 2014 rate.

But it still represents about 29,710 children — about 300 more than in 2014 because, again, the rate reflects a somewhat larger population. It too is higher than the disproportionately high national rate.

More than half the District’s poor children — 15,088 — were deeply poor. The new rate is higher than the 2014 rate — 13%, as compared to 12.4%.

Race/Ethnicity Gaps Still Large

Poverty is not an equal opportunity condition here in the District or anywhere else. As in the past, we see this writ in black and white in the ACS figures. Brown and tan also, though to a lesser extent.

Last year 26.6% of black District residents were officially poor, as compared to 6.9% of non-Hispanic whites. The deep poverty rate for the former was 13.3%, while only 4.5% for the latter.

Both rates for blacks were higher than in 2014. The plain vanilla rate for non-Hispanic whites was the same then, but their deep poverty rate somewhat higher.

For Hispanics, the poverty rate was 11.6% and the deep poverty rate 5.5%. The rates for Asians were 12.3% and 9.4%.

We see the same large disparities in the ACS figures for household incomes — a related, but broader indicator than the poverty rates.

The median household income for non-Hispanic whites was nearly three times the median for black households — $120,400, as compared to $41,520. Median incomes for Hispanic and Asian households fell in between.

The median for non-Hispanic white households was an eye-popping $63,400 more than the national median — an even larger difference than reported for 2014.

More Residents Suffering Hardships Than Poverty Rates Show

I always remark, at least in passing on the fact that the poverty thresholds the Census Bureau uses for analyses like these are very low.

They’re almost surely too low to accurately reflect the number of households without enough money for basic needs in communities nationwide. But they’re egregiously too low in high-cost communities like the District.

Consider, for example, a single mother with two children. They’re officially not poor if her income, before taxes was roughly $19,100 last year.

An affordable apartment for them would have had to cost no more than about $477.50 a month. But a modest two bedroom apartment, plus basic utilities cost roughly $980 more. It would have left the mom with about $1,580 for all her family’s other basic needs over the course of the year.

Even with SNAP (food stamp) benefits, she’d have been hard pressed to put enough food on the table in part because groceries here cost far more than the nationwide average, according to a cost-of-living database.

And the benefits assume she’ll spend 30% of her own adjusted income. So there goes a quite a bit of the money she’d have left after paying the rent. Probably more than her expected share, in fact. If not, then some hungry days for her.

She’d still have to pay for a host of other things, of course, e.g., clothes, soap, toothpaste and cleaning supplies, transportation. These aren’t necessarily costlier in the District than elsewhere. But we know daycare is.

She’d have to pay some part, even with a subsidy. The subsidy’s not a sure thing for a working woman like her, however. Without it, the average of cost even just after-school care for her kids would exceed her total income.

I don’t think I need to flog this point further. But we do need to put the new District poverty figures in perspective. [Your policy message here.]

* All the ACS tables include margins of error, i.e., how much the raw numbers and percents could be too high or too low. For readability, I’m reporting both as given. The overall poverty rate beats the statistical text, but others Small year-over-year changes may mean no real differences.

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DC Poverty Rate Rises to Nearly 19%

September 18, 2014

I was all set to write that the poverty rate for the District of Columbia dipped down last year, just as the official national rate had. But no, according to the just-released results of the American Community Survey.

The District’s poverty rate increased from 18.2% in 2012 to 18.9% in 2013,  Or so it seems. The increase is small enough increase to fall within the margin of error.*

Here’s more of what we’ve got, plus a few remarks here and there.

The Big Picture

The new poverty rate means that approximately 115,630 District residents lived on less than the very low applicable poverty threshold — just $23,624 for a two-parent, two-child family or about 26% of the family’s basic living costs in the D.C. area.

The rate is 2.5% higher than in 2007, just before the recession set in. It is also 3.1% higher than the 2013 national rate.

The deep poverty rate, i.e., the percent of residents living below half the applicable income threshold, was 10.3%. In other words, somewhat over 63,000 residents were devastatingly poor, especially when we consider the high costs of living in the District.

Young and Old

As in the past, the child poverty rate was much higher than the overall rate — 27.2%. This means that about 29,740 D.C. children were officially poor — well over half of them (16.2%) deeply so.

Both the total and the deep poverty rates for children were slightly higher than in 2012 — in both cases, by less than 1%. But they were considerably higher than in 2007, when the child poverty rate was 22.7% and the deep poverty rate for children 12%.

They were also both higher than the national rates. These, according to the ACS, were 22.2% and 9.9%.

Seniors had lower poverty and deep poverty rates — 17.5% and 4.5% respectively. These too, however, were higher than the nationwide rates. And a better poverty measure than the clunker the ACS uses would probably yield higher rates for seniors here in the District.

Non-Hispanic Whites v. Everybody Else

Race/ethnicity gaps in the District remain very wide. For example:

  • The black poverty rate was more than three and a half times greater than the rate for non-Hispanic whites — 28.7%, as compared to 7.7%.
  • For blacks, the deep poverty rate was 15.2%, while for non-Hispanic whites only 5.1%.
  • For Hispanics, the poverty rate was 12.6% and the deep poverty rate 5.6%. These are markedly lower than the 2012 rates, unlike the others here.
  • Rates for Asians were 18.7% and 13.2% respectively.

We see similar disparities in median household income, i.e., the midpoint between the highest and the lowest.

  • The median income for non-Hispanic white households was a very comfortable $118,402.
  • For black households, the median income was less than a third of that — $38,124.
  • Hispanic and Asian households fell in between, with a median incomes of $50,861 and $63,281 respectively.

The non-Hispanic white household median was a whole lot higher here than nationwide, by nearly $60,720.  The medians for black and Hispanic households were higher too, but the dollar differences were much smaller, especially the former. The median for Asian households was lower — a surprise, since it was considerably higher in 2012.

Work and Education

We’re told that work is the solution to poverty. The ACS figures support this, but only up to a point.

In 2013, 46.5% of poor residents between the ages of 16 and 64 didn’t work at all. An additional 25.7% worked less than full time or intermittently.

But that still leaves nearly 8,380 working-age residents who were employed full-time, year round and still not earning enough to lift themselves out of poverty — or at least, not them and dependent family members.

It’s a fair guess that these are mostly residents who don’t have the formal education credentials that living-wage jobs here, as elsewhere, increasingly demand. This is probably also the case for many of the part-time and some-time employed.

What we do know is that roughly 44.5% of residents 25-64 years old who had less than a high school education were employed during 2013 — and only 54.2% with no more than that.

Not surprisingly then, the poverty rate for those 25 years and older who had just a high school diploma or the equivalent was 27% last year — and for those with less, 39.3%. By contrast, the poverty rate for those with at least a four-year college degree was just 5.4%.

(Yes, I know these shifting age brackets are frustrating.)

Income Inequality

There’s obviously a lot of wealth in the District — and a lot of poverty. We see this in the figures I’ve cited, but also in the fact that the average household income — $102,822 — is so much greater than the median.

While 15.3% of households had incomes under $15,000, 12% had incomes of at least $200,000 — the highest bracket the Census Bureau reports.

There’s nothing new about this divide, except for the specific numbers. Nor is it unique to the District, though the disparity here seems unusually high. Nothing new about that either.

Most experts — and advocates as well — view the growing income inequality in this country as a bad thing in and of itself. They also see negatives specifically for people at the low end of the income scale. Many of the same arguments would apply to the District.

Nearly 10,860 families in the District had annual incomes, including cash benefits of less than $10,000 last year. Surely we can do better, though doing it won’t be simple.

* All the ACS tables include the margins of error, i.e., how much the raw numbers and percents could be too high or too low. In the interests of simplicity, I’m reporting both as given.

NOTE: I’ve revised several figures in this post because I’ve learned that I should use the ACS national figures for comparisons. I had originally used the Current Population Survey for these because that’s how I understood the Census Bureau advice.


DC Poverty Rate Ticks Down (Maybe)

September 19, 2013

Hard on the Census Bureau’s Income, Poverty and Health Insurance report come results from the American Community Survey. And, as the headline indicates, the overall D.C. poverty rate seemingly dropped — but barely. So little, in fact, that the percent difference from 2011 is within the margin of error.*

More detail on that, plus some other gleanings from the survey.

Poverty Rates a Mixed Story

The poverty rate in the District apparently declined from 18.7% in 2011 to 18.2% in 2012. This left about 108,860 residents below the very low poverty thresholds — just $23,283 for a two-parent, two-child family. And, as I noted, the margin of error — 1.3% — casts doubt on real improvement.

Assuming a real drop, the poverty rate was still 1.8% higher than in 2007, just before the recession set in. It was also 3.2% higher than the national rate.**

The extreme poverty rate, i.e., the percent of residents living below 50% of the applicable threshold, effectively flat-lined at 10.4%. In other words, more than 62, 200 residents were devastatingly poor, especially when we consider the high costs of living in D.C.

As in the past, the child poverty rate was much higher than the overall rate. It was 26.5% last year. So nearly 28,590 D.C. children were officially poor. Well over half of them — 15.8% — lived in extreme poverty.

Both the plain vanilla and the extreme poverty rates for children were lower than in 2011 — the former by 3.8%. But they were both higher than in 2007, when the child poverty rate was 22.7% and the extreme poverty rate for children 12%.

They were also both higher than the national rates. These, as I earlier reported, were 21.8% and 9.7%.

Race/Ethnicity Gaps Still Very Large

Well, let’s just say One City we ain’t — not, at any rate, from the story the ACS figures tell. For example:

  • The black poverty rate was nearly three times the rate for non-Hispanic whites — 25.7%, as compared to 7.4%.
  • For blacks, the extreme poverty rate was 14.5%, while for non-Hispanic whites only 5.2%.
  • For Hispanics, the poverty rate was 22.1% and the extreme poverty rate 10.2%.

We see similar disparities in median household income.

  • The median income for non-Hispanic white households was a very comfortable $110,619.
  • For black households, the median income was barely more than a third of that — $39,139.
  • Hispanic households did better, on average, with a median income of $51,460.

The white, non-Hispanic household median was notably higher here than the nationwide, by $53,610. The medians for black and Hispanic households were also higher, though by much smaller amounts.

Some Clues to the Poverty Rates

Needless to say (I hope), unemployment and under-employment go far to explaining the persistently high poverty rates in the District.

In 2012, nearly half (48.1%) of poor residents between the ages of 16 and 64 didn’t work at all. An additional 25% worked less than full-time or intermittently.

But that leaves about 8,618 working-age residents who were employed full-time, year round and still not earning enough to lift them out of poverty — or at least, not them and dependent family members.

It’s a fair guess that these are mostly residents who don’t have the formal education credentials that living wage jobs here, as elsewhere, increasingly demand. This is probably also the case for some of the part-time and some-time employed.

What we do know is that the poverty rate for adults 25 years and older who had just a high school diploma or the equivalent was 22.8% last year — and for those with less, 34.5%.

By contrast, the poverty rate for those with at least a four-year college degree was just 5.1%.

What Could Narrow The Gaps?

Well, we won’t solve the unemployment problem overnight.

Even if Congress restored the federal jobs lost to sequestration (highly improbable), the local near-term unemployment rate would probably be somewhere in the neighborhood of 8%, judging from Gray administration estimates.

And it would probably be considerably higher for the least educated residents, if the trends the DC Fiscal Policy Institute reported for 2012 continue.

Getting more residents qualified for high-skill jobs would surely help. But we’d still have a very large low-wage sector — all those hotels, restaurants and other retail businesses.

The brouhaha over the Large Retailers Accountability Act, a.k.a the Walmart bill, has spun off into what seems to be serious consideration of raising the District’s minimum wage — and its tip credit wage too perhaps.

A full-time, year round minimum wage worker currently can’t earn enough to lift a three-person family over the poverty threshold — even if s/he never takes even a few hours of unpaid time off because of illness.

So a reasonably robust, comprehensive increase would be a step in the right direction. Granting tipped workers a right to some paid leave would help too.

Far from a total answer, but things the DC Council could do right now.

* Because the survey sample size for the District is relatively small, the margins of error, i.e., the amounts the reported percents could be too high or too low, are sometimes more than 1%. In the interests of simplicity, I’m reporting the percents as given.

** As the Census Bureau advises, I’m using the results of the Current Population Survey for the national figures. The national ACS figures are somewhat different.