Estimating the potential effects of poverty reduction policies

Abstract

States require a measure of poverty that captures all family resources net of taxes and nondiscretionary expenses and uses thresholds reflecting current needs in the state to assess the well-being of families under current and alternative policies. This paper describes the implementation of a poverty measure for the State of Connecticut based on the recommendations of the National Academy of Sciences, and it describes the potential antipoverty effects of changes in child care, adult education, and child support policies. The paper concludes with a discussion of the challenges in implementing a modern poverty measure and in simulating policy alternatives. © 2010 by the Association for Public Policy Analysis and Management.