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APPENDIX A. ESTIMATES OF INCOME How Income Is Measured For each person in the sample 15 years and over, the Annual Social and Economic Supplement (ASEC) asks questions on the amount of money income received in the preceding calendar year from each of the following sources: 1. Earnings 2. Unemployment compensation 3. Workers’ compensation 4. Social security 5. Supplemental security income 6. Public assistance 7. Veterans’ payments 8. Survivor benefits 9. Disability benefits 10. Pension or retirement income 11. Interest 12. Dividends 13. Rents, royalties, and estates and trusts 14. Educational assistance 15. Alimony 16. Child support 17. Financial assistance from outside of the household 18. Other income It should be noted that although the income statistics refer to receipts during the preceding calendar year, the demographic characteristics, such as age, labor force status, and household composition, are as of the survey date. The income of the household does not include amounts received by people who were members during all or part of the previous year if these people no longer resided in the household at the time of interview. The Current Population Survey (CPS) collects income data for people who are current residents but did not Recessions Peak month Year Trough month Year November 1948 October 1949 July 1953 May 1954 August 1957 April 1958 April 1960 February 1961 December 1969 November 1970 November 1973 March 1975 January 1980 July 1980 July 1981 November 1982 July 1990 March 1991 March 2001 November 2001 Source: National Bureau of Economic Research, Inc. 1050 Massachusetts Avenue Cambridge, MA 02138 reside in the household during the previous year. Data on income collected in the ASEC by the U.S. Census Bureau cover money income received (exclusive of certain money receipts such as capital gains) before payments for personal income taxes, social security, union dues, Medicare deductions, etc. Therefore, money income does not reflect the fact that some families receive noncash benefits, such as food stamps, health benefits, subsidized housing, and goods produced and consumed on the farm. In addition, money income does not reflect the fact that noncash benefits are also received by some nonfarm residents, which often take the form of the use of business transportation and facilities, full or partial payments by business for retirement programs, medical and educational expenses, etc. Data users should consider these elements when comparing income levels. Moreover, readers should be aware that for many different reasons there is a tendency in household surveys for respondents to underreport their income. Based on an analysis of independently derived income estimates, the Census Bureau determined that respondents report income earned from wages or salaries much better than other sources of income, and that the reported wage and salary income is nearly equal to independent estimates of aggregate income. Cost of Living Adjustment In order to accurately assess changes in income and earnings over time, an adjustment for changes in the cost of living is required. The Census Bureau uses the research series of the Consumer Price Index (CPI-U-RS), provided by the Bureau of Labor Statistics for 1967 through 2005, to adjust for changes in the cost of living. The indexes used to make the constant dollar conversions are shown on page 30. U.S. Census Bureau Income, Poverty, and Health Insurance Coverage in the United States: 2005 29
Annual Average Consumer Price Index Research Series Using Current Methods (CPI-U-RS) All Items: 1947 to 2005 Year CPI-U-RS 1 Year CPI-U-RS 1 1947. . . . .................. 38.3 1976 . . . . . . . . . . . . . . . . . . . . . 94.0 1948. . . . .................. 41.4 1977 . . . . . . . . . . . . . . . . . . . . . 100.0 1949. . . . . . . . . . . . . . . . . . . . . . 40.9 1978 . . . . . . . . . . . . . . . . . . . . . 104.3 1950. . . . . . . . . . . . . . . . . . . . . . 41.4 1979 . . . . . . . . . . . . . . . . . . . . . 114.1 1951. . . . . . . . . . ............ 44.7 1980 . . . . . . . . . . . . . . . . . . . . . 126.7 1952. . . . . . . . . . . . . . . . . . . . . . 45.6 1981 . . . . . . . . . . . . . . . . . . . . . 138.6 1953. . . . . . . . . . . . . . . . . . . . . . 45.9 1982 . . . . . . . . . . . . . . . . . . . . . 146.8 1954. . . . . . . . . . . . . . . . . . . . . . 46.3 1983 . . . . . . . . . . . . . . . . . . . . . 152.9 1955. . . . . . . . . . . . . . . . . . . . . . 46.1 1984 . . . . . . . . . . . . . . . . . . . . . 159.0 1956. . . . . . . . . . . . . . . . . . . . . . 46.8 1985 . . . . . . . . . . . . . . . . . . . . . 164.3 1957. . . . . . . . . . . . . . . . . . . . . . 48.3 1986 . . . . . . . . . . . . . . . . . . . . . 167.3 1958. . . . . . . . . . . . . . . . . . . . . . 49.7 1987 . . . . . . . . . . . . . . . . . . . . . 173.0 1959. . . . . . . . . . . . . . . . . . . . . . 50.0 1988 . . . . . . . . . . . . . . . . . . . . . 179.3 1960. . . . . . . . . . . . . . . . . . . . . . 50.9 1989 . . . . . . . . . . . . . . . . . . . . . 187.0 1961. . . . . . . . . . . . . . . . . . . . . . 51.4 1990 . . . . . . . . . . . . . . . . . . . . . 196.3 1962. . . . . . . . . . . . . . . . . . . . . . 51.9 1991 . . . . . . . . . . . . . . . . . . . . . 203.4 1963. . . . . . . . . . . . . . . . . . . . . . 52.6 1992 . . . . . . . . . . . . . . . . . . . . . 208.5 1964. . . . . . . . . . . . . . . . . . . . . . 53.3 1993 . . . . . . . . . . . . . . . . . . . . . 213.7 1965. . . . . . . . . . . . . . . . . . . . . . 54.2 1994 . . . . . . . . . . . . . . . . . . . . . 218.2 1966. . . . . . . . . . . . . . . . . . . . . . 55.7 1995 . . . . . . . . . . . . . . . . . . . . . 223.5 1967. ..................... 57.4 1996 . . . . . . . . . . . . . . . . . . . . . 229.5 1968. . . . . . . . . . . . . . . . . . . . . . 59.7 1997 . . . . . . . . . . . . . . . . . . . . . 234.4 1969. . . . . . . . . . . . . . . . . . . . . . 62.3 1998 . . . . . . . . . . . . . . . . . . . . . 237.7 1970. . . . . . . . . . . . . . . . . . . . . . 65.3 1999 . . . . . . . . . . . . . . . . . . . . . 242.7 1971. . . . . . . . . . . . . . . . . . . . . . 68.2 2000 . . . . . . . . . . . . . . . . . . . . . 250.8 1972. . . . . . . . . . . . . . . . . . . . . . 70.3 2001 . . . . . . . . . . . . . . . . . . . . . 257.8 1973. . . . . . . . . . . . . . . . . . . . . . 74.7 2002 . . . . . . . . . . . . . . . . . . . . . 261.9 1974. . . . . . . . . . . . . . . . . . . . . . 82.1 2003 . . . . . . . . . . . . . . . . . . . . . 267.9 1975. . . . . . . . . . . . . . . . . . . . . . 88.9 2004 . . . . . . . . . . . . . . . . . . . . . 275.1 2005 . . . . . . . . . . . . . . . . . . . . . 284.3 1 The Census Bureau uses the Bureau of Labor Statistics’ experimental Consumer Price Index (CPI-U-RS) for 1977 through 2005. The Census Bureau derived the CPI-U-RS for years before 1977 by applying the 1977 CPI-U-RS-to-CPI-U ratio to the 1947 to 1976 CPI-U. Note: Data users can compute the percentage changes in prices between earlier years’ data and 2005 data by dividing the annual average Consumer Price Index (CPI-U-RS) for 2005 by the annual average for the earlier year(s). For more information on the CPI-U-RS, go to . 30 Income, Poverty, and Health Insurance Coverage in the United States: 2005 U.S. Census Bureau
Page 1 and 2: Income, Poverty, and Health Insuran
Page 3 and 4: Income, Poverty, and Health Insuran
Page 5 and 6: Contents TEXT Income, Poverty, and
Page 7 and 8: APPENDIX TABLES AND FIGURES A-1. Ho
Page 9 and 10: categorization. The data are now pr
Page 11 and 12: INCOME IN THE UNITED STATES Highlig
Page 13 and 14: Table 1. Income and Earnings Summar
Page 15 and 16: Nativity Real median household inco
Page 17 and 18: apparent change in real income at t
Page 19 and 20: Table 3 reflects the fact that peak
Page 21 and 22: Table 4. People and Families in Pov
Page 23 and 24: Figure 5. Poverty Rates by Age: 195
Page 25 and 26: Table 7. Income Deficit or Surplus
Page 27 and 28: HEALTH INSURANCE COVERAGE IN THE UN
Page 29 and 30: Table 8. People With or Without Hea
Page 31 and 32: Table 9. People Without Health Insu
Page 33 and 34: AK Figure 9. Differences in 2-Year-
Page 35: Additional Data and Contacts Detail
Page 39 and 40: Table A-1. Households by Total Mone
Page 45 and 46: Table A-2. Real Median Earnings of
Page 47 and 48: Table A-3. Selected Measures of Hou
Page 49 and 50: Table A-3. Selected Measures of Hou
Page 51 and 52: 1 Data have been revised to reflect
Page 53 and 54: Table B-1. Poverty Status of People
Page 65 and 66: Table B-3. Poverty Status of Famili
Page 67 and 68: Table C-1. Health Insurance Coverag
Page 83: APPENDIX D. COMPARISON OF STATE EST

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