The Great Recession's Impact on New York City: What Does the Center for Economic Opportunity's Poverty Measure Tell Us That the Official Measure Does Not?

Mark K. Levitan, New York City Center for Economic Opportunity
Christine D'Onofrio, New York City Center for Economic Opportunity
John Krampner, New York City Center for Economic Opportunity
Daniel Scheer, New York City Center for Economic Opportunity
Todd Seidel, New York City Center for Economic Opportunity

This paper will examine the change in the New York City poverty rate from 2008 to 2009, comparing results derived from the official measure against one created by the Center for Economic Opportunity. It will explore how differences in the two measures’ definition of family resources affect differences in the measured change in the poverty rate. The official poverty measure only accounts for pre-tax cash income. The CEO poverty measure includes the effect of taxation and the cash-equivalent value of in-kind nutritional and housing subsidies. A more inclusive accounting for resources should provide insight into the extent to which increased participation in the Food Stamp program and the expanded generosity of income tax credits softened the recession’s impact on income and poverty.