Dear Brian,
There is no standard and agreed definition of "low income". Even for a given authority, the definition of low income will vary according to the use to which it is to be put. In the US, most means-tested benefits are provided at a state (or state-local) level and the income test varies profoundly across the map. There is an official poverty level, but it is widely agreed that it is out of date and is set too low. It is common for most purposes to add 30 percent across the board to the poverty level to define poverty correctly. (The reforms needed for the poverty level are much more complex than that of course.)
The one benefit for which eligibility is determined nationally is food stamps. Eligibility is based on the poverty line. Gross monthly income (prior to certain deductions) is drawn from poverty line plus 30%. Net monthly income (after deductions) is drawn from the poverty line. For a family of three persons, poverty line is $1650 monthly and poverty line plus 30% is $2144. For eligibility see http://www.fns.usda.gov/snap/eligibility
As I said, there seems to be a consensus that the official poverty line is too low, to define poverty. I don't know whether there is actually a consensus supporting the 130% definition.
Best,
Dale Tussing
-----Original Message-----
From: The international health economics discussion list. [mailto:[log in to unmask]] On Behalf Of Brian McMillan
Sent: Thursday, December 04, 2014 10:42 AM
To: [log in to unmask]
Subject: What is a 'low income'?
Hello all,
First - a confession: I'm not a health economist, I'm a GP trainee.
I'm in the process of writing a very short article for other GP trainees discussing benefits for those on a low income. I've enlisted a benefits adviser to help me with this. The idea is to give GP trainees a bit of very basic knowledge so they might be able to identify people who could be entitled to benefits and refer them on appropriately. My motivation for this is the evidence of a causal relationship between income inequality and health.
I always think it's best to start with some definitions, but I'm really struggling with a definition of 'low income'.
I appreciate this is dependent on a wide range of factors - how many people in a household, how many dependents, how much savings, what worth of assets etc.
But the government must have calculations they use to decide if someone is entitled to benefits.
Can anyone point me in the direction of a simple definition of what a low income is - and could anyone put an up to date figure on this?
Many thanks in advance,
Brian
|