Federal Reserve Economic Data

Where is poverty prevalent in the United States? There’s no simple answer to this question because notions of poverty differ. And defining an objective threshold for poverty is especially difficult. But we can use FRED to put forth a good-faith effort. The Census Bureau uses a specific procedure to categorize poverty and then provides the data: First, they categorize 48 types of American households—which vary by age and composition. Second, they determine what income counts toward the threshold. And third, they determine what that threshold is. They then estimate what proportion of these households live below that threshold.

The results at the county level are shown in the GeoFRED map above. Before interpreting it, though, one needs to keep in mind that there’s no geographical variation for the poverty thresholds. This means that two families with the same income may be considered to be living in poverty regardless of whether they live in a high-cost or low-cost county. This absence of regional adjustment may bias the map. Indeed, according to some (subjective) poverty standards, too many people may be counted as poor in Mississippi (where costs are rather low) and not enough may be counted in the Washington, DC, area (where costs are rather high). So, one should always be cautious when looking at poverty data.

How this map was created: The original post referenced an interactive map from our now discontinued GeoFRED site. The revised post provides a replacement map from FRED’s new mapping tool. To create FRED maps, go to the data series page in question and look for the green “VIEW MAP” button at the top right of the graph. See this post for instructions to edit a FRED map. Only series with a green map button can be mapped.

Suggested by Christian Zimmermann.