Spatial and Temporal Trends in Multidimensional Poverty in the United States over the Last Decade

This paper undertakes a comprehensive analysis of multidimensional poverty in the United States over the last decade. It provides estimates of multidimensional poverty over more than a decade, from 2008 to 2019, which covers the Great Recession and the recovery following the recession when major policy changes such as the Affordable Care Act were implemented. For the first time, spatial trends in estimates of multidimensional poverty are also provided. We measure annual poverty levels in 4 regions, 50 states and examine the relation between multidimensional poverty and neighborhood characteristics. We find that on average, 13 percent of the United States population was multidimensional poor. Poverty rates were high in the South and the West and among young adults, immigrants and Hispanics. Alternative indices of multidimensional poverty show consistent trends; multidimensional poverty in the United States rose between 2008 and 2010 and then gradually declined. However, more than a quarter of individuals with incomes above the poverty threshold remained multidimensional poor. This underscores the fact that income does not always capture deprivation experienced by individuals. Policies geared towards affordable housing, health insurance and higher education will help reduce multidimensional poverty in the United States.

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• School of Economics