Economic Research Service Publishes E-Newsletter

RURAL AMERICA AT A GLANCE (2003)

Rural America At A Glance is a six-page brochure that highlights the most recent indicators of social and economic conditions in rural areas for use in developing policies and programs to assist rural areas. This brochure is the second in a series of reports that uses current social and economic data to highlight important population, labor market, income, and poverty trends in rural areas. The new metropolitan/nonmetropolitan classification is also discussed. The format of the report incorporates text bullets with charts and maps to make the report easy-to-read and visually interesting. This brochure provides information on key rural conditions and trends for use by public and private decisionmakers and others in efforts to enhance the economic opportunities and quality of life for rural people and their communities.

Released Tuesday, September 2, 2003

See http://www.ers.usda.gov/publications/rdrr97-1

DYNAMICS OF POVERTY AND FOOD SUFFICIENCY

This study examines dynamics in poverty and food insufficiency using newly available longitudinal data from the 1993 panel of the Survey of Income and Program Participation (SIPP) and the follow-on Survey of Program Dynamics (SPD). The study uses these data to characterize the incidence and dynamics of poverty and food problems for the entire U.S. population and for different subgroups. It also estimates multivariate, discrete-choice regression models to examine the factors associated with transitions into and out of poverty and food insufficiency, and it analyzes the empirical results in the context of a life-cycle model of income and food consumption. Results indicate that the incidence of food insufficiency in the United States is low less than 3 percent in 1997. There also appears to be little persistence in food problems; 79 percent of people in households with food problems at the start of the study period were in households without problems 2 years later. The multivariate results indicate that female-headed households face an especially high risk of being food insufficient. Low levels of asset income, an indicator of a household’s ability to spread consumption over time, are also associated with food sufficiency problems.

Released Tuesday, September 2, 2003

See http://www.ers.usda.gov/publications/fanrr36

FOOD STAMP BENEFITS AND CHILDHOOD POVERTY IN THE 1990S

In 2000, 8.8 million children received food stamps, making the Food Stamp Program a crucial component of the social safety net. Despite its importance, little research has examined the effect of food stamps on children’s overall well-being. Using the Current Population Survey from 1989 to 2001, we consider the impact of food stamps on three measures of poverty the headcount, the poverty gap, and the squared poverty gap. These measures portray the incidence, depth, and severity of poverty. We find that in comparison to the headcount measure, food stamp benefits lead to large reductions in the poverty gap and squared poverty gap measures. We then simulate the effects of several changes in the distribution of food stamps and find that a general across-the-board increase in benefits has little impact on poverty reduction. In contrast, targeted changes can greatly reduce the depth and severity of poverty increasing benefits to the poor results in a greater reduction in the depth of poverty than expanding participation rates, at a similar cost, among poor households.

Released Wednesday, September 3, 2003

See http://www.ers.usda.gov/publications/fanrr33