Poverty Rates in Indiana An very brief IBRC Economic Brief September 13, 2011

US Census Bureau Estimates Indiana Poverty Rates 1980 to 2010 Fact: severe recessions in the early 1980s, 1990s and the late 2000s brought higher rates of poverty to our population. The most recent recession has exacerbated Indiana’s situation because of slower hiring and the housing crisis. Bars in red highlight rates of 15% or higher.

Variation Among Estimates CPS is the Current Population Survey, and up until recently, data published for states included a 1-year estimate plus 2- year and 3-year averages. The 2010 release published only the 1-year estimate, which is based on a 60,000 household sample nationwide. The ACS is the American Community Survey, an annual “long form” that samples 3 million households nationwide. The ACS publishes 1-year, 3-year and 5-year estimates.

Differences matter Poverty rates vary, sometimes significantly, between the different versions of Census estimates. For example, the American Community Survey estimates show rates at 1.2 and 1.7 percentage points lower than the CPS for the years 2008 and 2009.

What to Use Data users generally want the most current information, but they also want the most accurate (which is sometimes difficult to determine, but in general larger sample sizes improve accuracy). Usage should depend on the purpose – whether applying for a grant, writing a news story (where current is always seen as better), or creating a trend line to determine whether Indiana has a long-term problem.

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