Changes in the Economic Resources of
Low-Income Households with Children
All years referred to in this paper are calendar years.
Numbers in the text and tables may not add up to totals because of rounding.
This Congressional Budget Office (CBO) paper was prepared at the request of the Ranking Member of the Senate Budget Committee. It uses data
from national surveys to examine the economic resources over a 15-year period for low-income households with children. Cross-sectional data are used to identify changes in the sources of income for that group over time. Longitudinal data are used to follow a group of households, classified as low-income households in one year, to show how the economic resources of a given household might change over a three-year period. In keeping with CBO's mandate to provide objective, impartial analysis, this paper makes no recommendations.
Molly Dahl wrote the paper under the guidance of Ralph Smith and Bruce Vavrichek. Helpful comments came from David Brauer, Thomas DeLeire, Robert Dennis, Naomi Griffin, Douglas Hamilton, Arlene Holen, Donald Marron, Paige Shevlin, Thomas Woodward, and Alshadye Yemane, all of CBO, and from Sheldon Danziger of the University of Michigan and Jeffrey Grogger of the University of Chicago. (The assistance of external reviewers implies no responsibility for the final product, which rests solely with CBO.)
Kate Kelly edited the manuscript, with assistance from John Skeen. Maureen Costantino prepared the report for publication and designed the cover. Lenny Skutnik produced the initial copies, Linda Schimmel coordinated the print distribution, and Simone Thomas prepared the electronic version for CBO's Web site.
Peter R. Orszag
Director
May 2007
Contents
Tables
1. Distribution of Real Income for Households with Children
2. Selected Sources of Income for Low-Income Households with Children
3. Changes in Income from 2001 to 2003 for Low-Income Households with Children in 2001
4. Selected Program Participation, Low-Income Households with Children in 2001
5. Health Insurance Coverage, Low-Income Households with Children in 2001
Figures
1. Sources of Income for Low-Income Households with Children
2. Growth in Real Income and Earnings of Households with Children, by Quintile
3. Sources of Income for Low-Income Households with Children, Detailed
4. AFDC or TANF for Low-Income Households with Children
5. EITC for Low-Income Households with Children
6. Detailed Sources of Income for Low-Income Households with Children, by Household Type
7. Growth in Real Earnings of Low-Income Households with Children, by Household Type
8. Sources of Income for Low-Income Households with Children in 2001, by Household Type
9. Sources of Income and Changes in Income for Low-Income Households with Children in 2001, by Household Type
Box
1. Changes in Income for Low-Income Households with Children in 2002
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