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Appendix A: Definitions and Explanations

Population Coverage. The figures in tables A, B, 1, 2 and 4 include annual averages based on the civilian noninstitutional population from the Current Population Survey and data from the Census of Population. The figures in tables 3, 5 to 7, 12 to 15, and 17 to 22 are annual averages from the Current Population Survey and relate solely to the civilian noninstitutional population. The figures in tables 9 to 11, 23 and 24 are from the Current Population Survey and relate to the civilian noninstitutional population plus members of the Armed Forces in the United States living off post or with their families on post. Tables 8 and 16 combine information from the Census of Population with Current Population Survey data on the civilian noninstitutional population plus members of the Armed Forces in the United States living off post or with their families on post.

Farm population. In the Current Population Survey, the farm population consists of all persons living in rural territory on places from which $1,000 or more of agricultural products were sold in the preceding 12 months. Persons living in summer camps, motels, and tourist camps are classified as nonfarm. The current definition was introduced into the P-27 series in 1978.

Under the previous farm definition, the farm population consists of all persons living in rural territory on places of 10 or more acres if at least $50 worth of agricultural products were sold from the place during the preceding 12 months. Persons living on places of under 10 acres were also included if agricultural sales totaled $250 or more.

Persons living on farms located within the boundaries of urban territory are not included in the farm population. Estimates of the farm population in the 1963 through . 1971 Current Population Surveys were limited to rural territory as determined in the 1960 Census of Population. For 1972 through 1983, the urban-rural boundaries used were those of the 1970 Census of Population. The 1984 and 1985 annual averages of the rural farm population are based on a mixture of urban and rural geography from the 1970 and 1980 population censuses. During the period April 1984 through June 1985, the Bureau of the Census systematically introduced a new sample design for the Current Population Survey reflecting the results of the 1980 census. For the phase-in period, the rural and urban estimates were

derived from a mix of the two sample designs. The 1986 to 1989 annual averages are based on the urban and rural geography from the 1980 census.

Nonfarm population. The nonfarm population includes rural persons not living on farms plus the urban population.

Annual averages. Annual estimates are computed by averaging monthly data for the calendar year for which the estimates are prepared. Each of the 12 months are given equal weights.

Five-quarter averages centered on April. Aprilcentered annual averages of the farm population are computed by using data for the five quarters centered on the April date for which the estimates are prepared. For example, for April 1983, quarterly estimates for the months of October 1982, and January, April, July, and October 1983 were used with a weight of one-eight given to each of the two October estimates and a weight of one-fourth to each of the estimates for the other three months.

Urban-rural residence. Current CPS annual averages are based on the urban and rural geography delineated for the 1980 census. According to the 1980 census definition, the urban population comprises all persons living in (a) places of 2,500 or more inhabitants incorporated as cities, villages, boroughs (except Alaska and New York) and towns (except the New England states, New York, and Wisconsin), but excluding those persons living in the rural portions of extended cities (places with low population densities in one or more large parts of the area); (b) census designated places (previously designated unincorporated) of 2,500 or more inhabitants; and (c) other territory, incorporated or unincorporated, included in urbanized areas. An urbanized area consists of a central city or a central core, together with contiguous closely settled territory, that combined have a total population of at least 50,000.

The population not classified as urban constitutes the rural population. The farm population is identified only in rural territory, and the rural farm population constitutes only a part of the total rural population.

The major difference between the current urban definition, in effect since 1950, and earlier definitions is the addition of the urbanized area concept. This change

improved measurement of urban territory to include many large and densely settled areas previously excluded merely because they were not considered "incorporated places." For detailed discussions of the urban definitions used up to 1940 and of the major changes implemented in 1950, see U.S. Bureau of the Census, Current Population Reports Series P-23, No. 1, The Development of the Urban-Rural Classification in the United States: 1874 to 1949, and U.S. Census of Population: 1950, Vol. 1, pp. XV-XVIII.

Geographic regions. The four macro-scaled regions of the United States for which data are presented in this report consist of the following States:

Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont.

Midwest: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin.

South: Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia.

West: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming.

Metropolitan-nonmetropolitan residence. The population residing in metropolitan statistical areas (MSA's) constitutes the metropolitan population. MSA's are defined by the Office of Management and Budget for use in the presentation of statistics by agencies of the Federal Government. An MSA is a geographic area consisting of a large population nucleus, together with adjacent communities which have a high degree of economic and social integration with that nucleus. The definitions specify a boundary around each large city so as to include most or all of its suburbs. Entire counties form MSA building blocks, except in New England where cities and towns are used. The former term SMSA was changed to MSA in 1983.

An area qualifies for recognition as an MSA if (1) it includes a city of at least 50,000 population, or (2) it includes a Census Bureau defined urbanized area of at least 50,000 with a total metropolitan population of at least 100,000 (75,000 in New England). In addition to the county containing the main city or urbanized area, an MSA may include other counties having strong commuting ties to the central county. If specified conditions are met, certain large MSA's are designated as consolidated MSA's (CMSA's) and divided into component primary MSA's (PMSA's).

In July 1985, the CPS began carrying the metropolitan statistical definitions announced by the Office of Management and Budget on June 30, 1984. Figures published from the CPS in the early 1980's and throughout most of the 1970's referred to metropolitan areas as defined on the basis of the 1970 census. Since there are important differences in the population classified as metropolitan using the 1970 and 1984 definitions, comparisons should be avoided.

The new CPS metropolitan estimates have consistently been higher than independent county-level estimates of the metropolitan population prepared by the Census Bureau; the new CPS nonmetropolitan population estimates have been lower than the independent estimates. For example, between July 1985 and August 1986, the magnitude of the monthly differences varied from 900,000 to 2.5 million persons, so that the proportion of the population living in metropolitan areas according to the CPS has ranged from 0.4 to 1.0 percentage points higher than the independent estimate. The difference in level between the two sets of estimates is partially attributable to the basic CPS sample design, which, because of sampling variability, includes an oversample of metropolitan households and an undersample of nonmetropolitan households. The monthly variations result from the exit and entrance of rotation groups, each with slightly different metropolitannonmetropolitan proportions, into the sample. The apparent overestimation of metropolitan and underestimation of nonmetropolitan population in the CPS relative to the Bureau's independent estimates should be taken into account when using the data.

Race. The population is divided into five groups on the basis of race: White, Black, American Indian/Aleut Eskimo, Asian or Pacific Islander and Other races beginning with March 1989. The last category includes any other race except the four mentioned. In the tables in this report, American Indian/Aleut Eskimo, Asian or Pacific Islander and Other races are included in the Other races category.

Hispanic origin. Persons of Hispanic origin are those who indicate that their origin is Mexican, Puerto Rican, Cuban, Central or South American, or some other Hispanic origin. Persons of Hispanic origin may be of any race.

Age. The age classification is based on the age of the person at the last birthday.

Median age. The median age is the age which divides the population into two equal-size groups, one younger and the other older than the median.

Marital status. The marital status classification identified four major categories: single (never married), married, widowed, and divorced. These terms refer to the marital status at the time of the enumeration.

The category "married" is further divided into "married, spouse present," "separated," and "married, spouse absent." A person was classified as "married, spouse present" if the husband or wife was reported as a member of the household, even though he or she may be temporarily absent on business or on vacation, visiting, in a hospital, etc. at the time of enumeration. Persons reported as separated include those with legal separations, those living apart with intentions of obtaining a divorce, and other persons permanently or temporarily separated because of marital discord. The group "married, spouse absent" includes married persons living apart because either the husband or wife was employed and living at a considerable distance from home, was serving away from home in the Armed Forces, had moved to another area, or had a different place of residence for any other reason except separation as defined above.

Household. A household consists of all persons who occupy a housing unit. A house, an apartment or other group of rooms, or a single room, is regarded as a housing unit when it is occupied or intended for occupancy as separate living quarters; that is, when the occupants do not live and eat with any other persons in the structure and there is direct access from the outside or through a common hall.

A household includes the related family members and all the unrelated persons, if any, such as lodgers, foster children, wards, or employees who share the housing unit. A person living alone in a housing unit, or a group of unrelated persons sharing a housing unit as partners, is also counted as a household. The count of households excludes group quarters.

Householder. The householder refers to the person (or one of the persons) in whose name the housing unit is owned or rented (maintained) or, if there is no such person, any adult member, excluding roomers, boarders, or paid employees. If the house is owned or rented jointly by a married couple, the householder may be either the husband or the wife. The person designated as the householder is the "reference person" to whom the relationship of all other household members, if any, is recorded. The number of householders is equal to the number of households. The number of family householders is equal to the number of families.

Family. A family is a group of two or more persons (one of whom is the householder) related by birth, marriage, or adoption and residing together; all such persons (including related subfamily members such as children and their spouses) are considered as members of one family. Beginning with the 1980 CPS, unrelated subfamilies (referred to in the past as secondary families) are no longer included in the count of families, nor are the members of unrelated subfamilies included in the count of family members.

Family household. A family household is a household maintained by a family (as defined above): it includes any unrelated persons (unrelated subfamily members and/or secondary individuals) who reside there. The number of family households is equal to the number of families. The count of family household members differs from the count of family members, however, in that the family household members include all persons living in the household, whereas family members include only the householder and his/her relatives.

Own children. Own children in a family are sons and daughters, including stepchildren and adopted children of the householder. The count of own children under 18 years old is limited to single (nevermarried) children who are not reference persons for a related subfamily.

Labor force and employment status. The labor force and employment estimates relate to the population 15 years old and older.

Labor force. Persons are classified in the labor force if they were employed as civilians, unemployed, or in the Armed Forces during the survey week. Data are shown only for the civilian labor force.

Employed. Employed persons include all civilians who, during the specified week (1) did any work as paid employees or in their own business or profession, or on their own farm, or who worked 15 hours or more as unpaid workers on a farm or in a business operated by a member of the family, or (2) were not working but who had jobs or businesses from which they were temporarily absent because of illness, bad weather, vacation, or labormanagement dispute, or because they were taking time off for personal reasons, whether or not they were paid by their employers for time off, and whether or not they were seeking other jobs. Excluded from the employed group are persons whose only activity consisted of work around the house (such as own home housework, painting or repairing own home, etc.) or volunteer work for religious, charitable, and similar organizations.

Unemployed. Unemployed persons are those civilians who, during the survey week, had no employment but were available for work and (1) had engaged in any specific job-seeking activity within the past 4 weeks such as registering at a public or private employment office, meeting with prospective employers, checking with friends or relatives, placing or answering advertisements, writing letters of application, or being in a union or professional register; (2) were waiting to be called back to a job from which they had been laid off; or (3) were waiting to report to a new wage or salary job within 30 days.

Not in the labor force. All civilians 15 years and old and over who are not classified as employed or unemployed are defined "not in the labor force." This group includes persons engaged in keeping house, attending school, or who are unable to work because of long-term mental illness; persons who are retired; seasonal workers for whom the survey week fell in the off season; and the voluntarily idle. Persons doing only unpaid family work for less than 15 hours during the survey week are also classified as not in the labor force.

Occupation. Data on occupation refer to the job held during the survey week. Persons with one or more job during the survey week were classified as employed in the occupation in which they worked the greatest number of hours during the week. The occupational groups are based on the classification system used in the 1980 Census of Population.

Farm occupations. The occupation categories "farm operators and managers" and "farm workers and related occupations" are considered farm occupations. "Farm workers and related occupations" includes farm, marine life, cultivation, and nursery workers; groundskeepers and gardeners; animal caretakers; and graders, sorters, and inspectors of agricultural products.

Nonfarm occupations. The category includes all occupations not classified as farm.

Industry. Data on industry refer to the job held during the survey week. Persons with more than one job during the survey week were classified as employed in the industry in which they worked the greatest number of hours during the week. The industry groups are based on the classification system used in the 1980 Census of Population.

Agriculture. The industry category "agriculture" includes (1) farm operators, managers, and laborers; (2) persons employed on farms in occupations such as truck driver, mechanic, and bookkeeper; and (3) persons engaged in certain activities other than strictly farm operation such as cotton ginning, contract farm services, veterinary and breeding services, hatcheries, experiment stations, greenhouses, landscape gardening, tree service, trapping, hunting preserves, and kennels.

Nonagricultural Industries. The category includes all industries not specifically classed under agriculture.

Class of worker. This refers to the broad classification of the person's employer. Persons are classified into three categories based on type of employment during the survey week.

Self-employed workers. Persons who work for profit or fees in their own business, profession, or trade, or who operated a farm either as an owner or tenant.

Wage and salary workers. Persons who worked for any governmental unit or private employer for wages, salaries, commissions, tips, pay "in kind," or at piece rates.

Unpaid family workers. Persons who worked 15 or more hours per week without pay on a farm or in a business operated by a person to whom they are related by birth or marriage.

Money Income. This is defined as the algebraic sum of money wages and salaries, net income from farm and nonfarm self-employment, and income other than earnings. Data on income 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 part of their income in the form of non-cash benefits such as food stamps, health benefits, and subsidized housing; that some farm families receive noncash benefits in the form of rent-free housing and goods produced and consumed on the farm; or that noncash benefits are also received by some non-farm 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. These elements should be considered when comparing income levels.

For each person in the CPS 15 years old and over, questions were asked on the amount of money income received in the preceding calendar year from each of the following sources: (1) money wages or salary; (2) net income from nonfarm selfemployment; (3) net income from farm self-employment; (4) Social Security or railroad retirement; (5) Supplemental Security Income; (6) public assistance or welfare payments; (7) interest on savings or other investments which pay interest; (8) dividends, income from estates or trusts, or net rental income; (9) veterans' payments or unemployment and workers' compensation; (10) private pensions or government employee pensions; (11) alimony or child support, regular contributions from persons not living in the household, and other periodic income.

Receipts from the following sources are not included as income: (1) money received from the sale of property, such as stocks, bonds, a house, or a car (unless the person was engaged in the business of selling such property, in which case the net proceeds would be counted as income from self-employment); (2) withdrawals of bank deposits; (3) money borrowed; (4) tax refunds; (5) gifts; and (6) lump-sum inheritances or insurance payments.

Family income. The total income of a family is the algebraic sum of the amounts received by all income recipients in the family.

In the income distribution for families and households, the lowest income group (under $5,000 or loss) includes those families and households who were classified as having no income in the income year and those reporting a loss in net income from farm and nonfarm self-employment or in rental income. Some of those living on income "in kind," savings, or gifts; or were newly constituted families or households; or families or households in which the sole earner had recently died or had left the household. However, other families and households who reported no income probably had some money income which was not recorded in the survey.

It should be noted that although the income statistics refer to receipts during the preceding year, the composition of families refers to the time of the survey. The income of the family does not include amounts received by persons who were members of family or household during all or part of the income year if these persons no longer resided in the household at the time of enumeration. However, family income includes amounts reported by related persons who did not reside with the family during the income year but who were members of the family at the time of enumeration.

Median income. The median income is the amount which divides the distribution into two equal groups, one having incomes above the median, and the other having incomes below the median. The medians for households and families are based on all households and families.

Poverty definition. Families and unrelated individuals are classified as being above or below the poverty level using the poverty index originated at the Social Security Administration in 1964 and revised by Federal Interagency Committees in 1969 and 1980. The poverty index is based solely on money income and does not reflect the fact that many low-income persons receive non-cash benefits such as food stamps, Medicaid, and public housing. The index is based on the Department of Agriculture's 1961 Economy Food Plan and reflects the different consumption requirements based on their size and composition. It was determined from the Department of Agriculture's 1955 Survey of Food Consumption that families of three or more persons spend approximately one-third of their income on food; the poverty level for these families was, therefore, set at three times

the cost of the Economy Food Plan. For smaller families and persons living alone, the cost of the Economy Food Plan was multiplied by factors that were slightly higher in order to compensate for the relatively larger fixed expenses of these smaller households. The poverty thresholds are updated every year to reflect changes in the Consumer Price Index (CPI-U). The average poverty threshold for a family of four was $12,675 in 1989. For further details, see Current Population Reports, Series P-60, No. 171.

Education. Data on years of school completed in this report were derived from the combination of answers to two questions: (a) "What is the highest grade of school he/she has ever attended?" and (b) "Did he/she finish this grade?"

The questions on educational attainment apply only to progress in "regular" schools. Such schools include graded public, private, and parochial elementary and high schools (both junior and senior high), colleges, universities, and professional schools, whether day schools or night schools. Thus regular schooling is that which may advance a person toward an elementary school certificate or high school diploma, or a college, university, or professional school degree. Schooling in other than regular schools was counted only if the credits obtained were regarded as transferable to a school in the regular school system.

The following categories are used in this report: "Less than High School", "High School", "Some College", "College +", and "At Least Some College". "Less than High School" refers to 11 or fewer years of school completed. "High School" refers to 12 years of school completed. "Some College" refers to 13 to 15 years of school completed. "College+" refers to 16 or more years of school completed. "At Least Some College" refers to 13 or more years of school completed.

Rounding. The individual figures in this report are rounded to the nearest thousand. With few exceptions, the individual figures have not been adjusted to group totals, which are independently rounded. Percentages are rounded to the nearest tenth of a percent; therefore, the percentages in a distribution do not always add to exactly 100.0 percent. The totals however, are always shown as 100.0. Percentages are based on the rounded absolute numbers.

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