Bericht

Self-reliance and poverty: Net earnings capacity versus income for measuring poverty

The United States' official poverty measure defines the poor in terms of a family's actual, yearly cash income relative to an estimate of the income needed to sustain a minimally acceptable standard of living. An alternative definition, designed to reflect a family's ability to achieve economic independence, would instead rest on its capacity for generating income. Net earnings capacity (NEC) is an indicator of the income a family could earn if all working-age family members work full-time, full-year, at earnings consistent with their age, education, and other characteristics, with an adjustment made for child care costs. NEC is not intended as a replacement for the official measure, but as a supplement. The official measure identifies the population in need of short-term monetary assistance, whereas NEC identifies the population in need of longer-term skill-enhancing assistance in order to become self-reliant. Two general policy approaches to reduce the prevalence of NEC poverty are to increase the level of education and other income-generating characteristics of those with low earnings capacity and to increase the returns they receive for work.

ISBN
0941276570
Sprache
Englisch

Erschienen in
Series: Public Policy Brief ; No. 46

Klassifikation
Wirtschaft

Ereignis
Geistige Schöpfung
(wer)
Haveman, Robert
Bershadker, Andrew
Ereignis
Veröffentlichung
(wer)
Levy Economics Institute of Bard College
(wo)
Annandale-on-Hudson, NY
(wann)
1998

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Bericht

Beteiligte

  • Haveman, Robert
  • Bershadker, Andrew
  • Levy Economics Institute of Bard College

Entstanden

  • 1998

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