Volume 28, Number 1 (Winter) 1993
Renwick, Trudi J., and Barbara R. Bergmann. 1993. "A Budget-Based Definition of Poverty, With an Application to Single-Parent Families." Journal of Human Resources 28(1):1-24.
An approach to defining poverty through a "Basic Needs Budget" (BNB) is presented which takes account of families' differing needs for child care and transportation, and of regional differences in housing costs. Taxes and noncash benefits from governmental and private sources are also accounted for. The BNB poverty rate for single parents for 1989 is 47 percent, compared to 39 percent under the official method; almost a quarter of single parents holding full-time jobs are counted as poor under the BNB method. Radical reduction in both the welfare rolls and the poverty rate would require government assurance of child care and medical care to single parents.
Trudi J. Renwick is a visiting assistant professor of economics at Skidmore College and Barbara R. Bergmann is a Distinguished Professor of Economics at American University, Washington, D.C. They would like to thank Fred Bergmann, Robert Lerman, Patricia Ruggles, and two anonymous referees for valuable suggestions, and Charles Nelson of the U.S. Bureau of the Census for creating the enhanced data tapes used. They acknowledge financial help from American University. The microdata tape used is available from the U.S. Bureau of the Census; a "BNB Manual" in the form of an annotated version of the SAS program used can be obtained through December 1999 from Trudi Renwick, Skidmore College, Saratoga Springs, NY 12866.
© 2002 by the Board of Regents of the University of Wisconsin System
US ISSN 0022-166X