Assessing post-census state poverty estimates

While the decennial census provides poverty figures for states and other subnational geographic units every ten years, their utility declines over the course of a decade. Consequently, there is growing interest in producing post-census estimates for a variety of indicators. This study extends recent efforts to estimate post-census poverty figures for states by producing such estimates using a multiple regression approach. The accuracy of the multiple regression estimates along with recently produced estimates from the Current Population Survey (CPS) are evaluated relative to the decennial census. The mean absolute percentage point error (MAPPE) using the ratio-correlation technique (1.56 percentage points) was somewhat higher than the MAPPE of 1989 CPS (1.37 percentage points) and an average of 1988–1990 CPS data (1.15 percentage points). However, a simple regression technique using data from 1979 to estimate poverty in 1989 produced a set of estimates where the MAPPE (1.37 percentage points) is nearly as accurate as the single-year CPS estimates. Estimates which average regression estimates and CPS-based estimates are more accurate than either regression or CPS estimates used alone. Several suggestions are offered for improving regression estimates.This article is a revised version of a paper presented at the annual meeting of the Population Association of America, 1–4 April 1993, Cincinnati, OH, USA.