Access over 20 million homework & study documents

search

2 The poverty rate among families headed by a married couple fell b

Content type
User Generated
Rating
Showing Page:
1/2
2. The poverty rate among families headed by a married
couple fell between 1980 and 1995, from 6.2% to 5.6
percent. The poverty rate also fell over that period for
families headed by a single parent (the only other category
of families), from 28.9% to 28.4%. Nevertheless, the
poverty rate among all U.S. families increased from 10.3%
in 1980 to 10.8% in 1995.1
A. How can this be?!? That is, how can the aggregate
poverty rate rise when the poverty rate fell for each type of
family? (Hint: This kind of result is sometimes called
Simpson
Solution
A.
Aggregate poverty can rise even when the poverty rate for
each type of family fell when the number of people having
no families increase in population and are also poor. Also,
when calculating the consumption basket for families,
government recalculates the consumption towards a
cheaper basket in an attempt to estimate the consumption
patterns of a rational family. This makes the poverty level
for families lower than the actual rate.
B.
Same reason as above.

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/2

Sign up to view the full document!

lock_open Sign Up
Unformatted Attachment Preview
2. The poverty rate among families headed by a married couple fell between 1980 and 1995, from 6.2% to 5.6 percent. The poverty rate also fell over that period for families headed by a single parent (the only other category of families), from 28.9% to 28.4%. Nevertheless, the poverty rate among all U.S. families increased from 10.3% in 1980 to 10.8% in 1995.1 A. How can this be?!? That is, how can the aggregate poverty rate rise when the poverty rate fell for each type of family? (Hint: This kind of result is sometimes called Simpson Solution A. Aggregate poverty can rise even when the pover ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
This is great! Exactly what I wanted.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4