SupportingStatement_PartA

SUPPORTING STATEMENT
U.S. Department of Commerce
U.S. Census Bureau
Annual Social and Economic Supplement
to the Current Population Survey
OMB Control Number 0607-0354
Part A - Justification
Question 1. Necessity of the Information Collection
This request is for approval of revision to a currently approved collection due to
material changes to the data collection instrument. The Annual Social and Economic
Supplement (ASEC) is currently approved through November 30, 2016 with OMB
Control Number 0607-0354.

The U.S. Census Bureau has conducted the ASEC annually for over 60 years. It
is authorized by Title 13, United States Code, Section 182, and Title 29, United States
Code, Sections 1-9. The Census Bureau and the Bureau of Labor Statistics (BLS)
sponsor this supplement. The Census Bureau will conduct the ASEC in conjunction
with the February, March, and April Current Population Survey (CPS).

The proposed supplement, as it will appear in the CPS instrument, is shown in
Attachment A.

This ASEC data collection will consist of a different treatment structure for
income questions from the previous annual collection, which necessitates the need for
the request for clearance.

The 2014 data collection instrument was redesigned to

include a new series of questions relating to 1) income; and 2) health insurance. The
income questions were administered using two separate treatments: approximately
five-eighths (5/8) of the ASEC sample had income questions administered from the
“traditional” design (i.e., the old question series), while three-eighths (3/8) had income
questions administered from the “redesigned” ASEC (i.e., the new question series).
For the health insurance questions, the entire sample was administered the new
question series.

Starting in 2015, the entire sample will be administered the new

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questions for income and health insurance.

This request also asks for clearance for the forms that are used in conjunction
with the ASEC supplement. These forms include:

Form No.

Description

Attachment

CPS-580 (ASEC)(L)

Advance letter sent to each household in
sample.

F

CPS-580 (L)SP

Same letter as above translated into Spanish.

G

CPS-676

Pamphlet with information from the ASEC.

H

CPS-676(SP)

Same pamphlet as above but in Spanish.

I

These forms are made available so that the respondents will have a clear understanding
of the purpose and uses of the CPS ASEC supplement.

Question 2. Needs and Uses
The ASEC questionnaire can be divided into five logical series of questions as follows:
a.

Work Experience (See Attachment A: Items Q29A-Q4788)
The work experience items provide a unique measure of the dynamic nature
of the labor force as viewed over a 1-year period. These items produce statistics
that show movements in and out of the labor force by measuring the number of
periods of unemployment experienced by people, the number of different
employers worked for during the year, the principal reasons for unemployment,
and part-/full-time attachment to the labor force.

We can make indirect

measurements of discouraged workers and others with a casual attachment to the
labor market.
b.

Personal Income and Noncash Benefits (See Attachment A: Items Q48A-Q52C4,
Q56a-Q7324,Q74a)
The ASEC supplement collects data on a number of personal income and noncash
benefit sources as listed below:

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Sources of Income
Earned Income
Unemployment and Workers' Compensation
Social Security and Supplemental Security Income
Public Assistance and Veterans Payments
Survivor Benefits and Disability Income
Pensions, Annuities, and Retirement
Income-Earning Accounts outside of Retirement and Property Income
Education Assistance
Child Support
Regular Financial Assistance and Other Income
The income data from the ASEC are used by social planners, economists,
government officials, and market researchers to gauge the economic well-being of
the country as a whole and of selected population groups of interest. Government
planners and researchers use these data to monitor and evaluate the effectiveness
of various assistance programs. Market researchers use these data to identify and
isolate potential customers. Social planners use these data to forecast economic
conditions and to identify special groups that seem to be especially sensitive to
economic fluctuations. Economists use ASEC data to determine the effects of
various economic forces, such as inflation, recession, recovery, and so on, and
their differential effects on various population groups.

A prime statistic of

interest is the classification of people in poverty and how this measurement has
changed over time for various groups. Researchers evaluate ASEC income data
not only to determine poverty levels but also to determine whether government
programs are reaching eligible households.

The 2015 health insurance items (pages 109-124 in Attachment A) revolve
around five possible categories of health insurance coverage. They are described
below:

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1) Coverage provided through a current or former employer.
2) Coverage through a private health insurance plan purchased directly.
3) Coverage on any health insurance plan, including that of a nonhousehold
member.
4) Government-sponsored coverage, including medicare, medicaid, and
State Children’s Health Insurance Program (SCHIP).
5) State-specific coverage for low-income uninsured individuals.
c. Household Noncash Benefits (See Attachment A: Items Q80-Q94)
These items collect data on participation in the school lunch, public housing,
food stamp, and fuel assistance programs.

The questions (Q80 and Q83) concerning school lunches identify households
with children who participated in the Federal School Lunch Program during the
previous year. These data allow for more effective analyses of the program and,
along with the food stamp data, show where the client groups of the two food
nutrition programs overlap.
The questions (Q85 and Q86) on public housing identify households that are
owned by a housing authority or other public agency and households where a
government agency is paying for part of the rent. These data allow for more
effective analysis of public housing programs and measure the extent of
participation among eligible families.

The question (SPHS8) determines the

specific source of housing assistance.
The questions (Q87 through Q94) on food stamps identify which household
members received food stamps during the previous year. These data, along with
the detailed supplemental income data, allow for a more comprehensive
evaluation of the food stamp program and measure the extent of participation
among eligible families.
Items Q93-Q94 provide a measurement of the number of households that
have received government heating or cooling assistance in the previous calendar
year, and the amount of such assistance. State agencies provide the only other

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available data relevant to the energy assistance program in the form of summary
counts of households receiving this type of assistance, cross-classified by their
annual income levels. The ASEC is the only current data set capable of crosstabulating fuel assistance recipients/nonrecipients with their socioeconomic
characteristics.

This allows analysts to determine whether funds are reaching

eligible households.

d. Supplemental Poverty Measures
Questions designed to produce a supplemental

poverty measure can be

divided into four parts: 1) Property value and presence of mortgage; 2) Medical
expenditures; 3) Child support paid; and 4) Child care expenses paid.
Many agencies use poverty data from the Census Bureau, including the U.S.
Department of Health and Human Services, the U.S. Department of Housing and
Urban Development, and the U.S. Department of Agriculture.

Each of these

agencies, and many more, are anxious for the Census Bureau to release improved
poverty measures so they can ascertain how such a measure can enhance their
ability to provide assistance and services to those in need.

Agencies which

publish documents based on the traditional (current) poverty measure are
encouraged to also produce information based on a supplemental poverty measure
to the fullest extent possible.

e. Migration (See Attachment A: Items MIGSAM-NX1OTH)
The migration questions refer to one year ago and collect information on
residency including state, county, and city. Private and government analysts use
migration statistics from this supplement to determine the mobility of the
country's population.

Specifically, it is important to determine which areas are

losing/gaining in population over the decade and to monitor the population shifts
between regions and between cities, suburbs, and nonmetropolitan areas of the
country. These migration patterns provide researchers the ability to predict future
population decline/growth and general socioeconomic conditions for these areas.

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Information quality is an integral part of the pre-dissemination review of the
information disseminated by the Census Bureau (fully described in the Census
Bureau’s Information Quality Guidelines).

Information quality is also integral to the

information collections conducted by the Census Bureau and is incorporated into the
clearance process required by the Paperwork Reduction Act.

Question 3. Use of Information Technology
We deem the use of personal visits and telephone interviews, using computerassisted
telephone interviewing and computer-assisted personal interviewing, the most
appropriate collection methodology given existing available information technology.
We are examining the Internet as a reporting option, but have not yet determined
whether the Internet is feasible for a complex demographic survey such as the CPS.

Question 4. Efforts to Identify Duplication
The ASEC and the Survey of Income and Program Participation (SIPP) contain
similar content, but the ASEC remains a vital data source. It provides a database for
measuring economic activity dating back to 1947. The ASEC is often matched to the
other CPS supplements conducted in adjacent months, thereby greatly enhancing the
utility of those datasets at minimal cost to the sponsors without increasing respondent
burden. ASEC provides a higher level of statistical reliability than SIPP because the
SIPP sample size is smaller than the CPS. However, SIPP collects considerably more
detail on program benefits and assets, which enables measurements of wealth and wellbeing.

The ASEC focuses on accurate cross-sectional data (providing a clear

snapshot), while SIPP focuses on accurate longitudinal data (providing a moving
picture).
A number of independent surveys and supplements to the CPS have contained
selected income and noncash benefit items.

Until the implementation of the SIPP,

however, no other data source was available that provided the depth and scope of
information of the kind described in Question 2.

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Question 5. Minimizing Burden
This collection does not involve small businesses or other small entities.

Question 6. Consequences of Less Frequent Collection
We collect the ASEC annually to detect shifts in household composition, labor
force activity, migration patterns, and income levels. These measurements are very
sensitive to the general economic climate, and to collect these data less frequently
would mask some trends and disrupt time series analyses.

Question 7. Special Circumstances
There are no special circumstances. We collect the CPS data in a manner that is
consistent with the Office of Management and Budget (OMB) guidelines.

Question 8. Consultations Outside the Agency
The following individuals have contributed to the development of the ASEC
supplement by providing valuable feedback in the area(s) of their expertise:
Kathy Porter
Center on Budget and Policy Priorities
(202) 408-1080

Joseph Piacentini
Aetna
(203) 273-2966

Katherine Furlong
Council of Economic
Advisors
(202) 395-5062

Joan Turek
Department of Health and Human
Services
(202) 690-5965

Mike Horrigan
Bureau of Labor Statistics
Department of Labor
(202) 691-5907

Anne Polivka
Bureau of Labor Statistics
Department of Labor
(202) 691-7395

Howard Hayghe
Bureau of Labor Statistics
Department of Labor
(202) 691-6378

Phil Rones
Bureau of Labor Statistics
Department of Labor
(202) 691-7802

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Jack Schmoulowitz
Social Security Administration
(410) 965-0179

Howard Iams
Social Security Administration
(202) 358-6217

Wendy Hicks
Westat, Inc.
(301) 251-1500

Jeffrey Kerwin
Westat, Inc.
(301) 251-1500

In addition, a statement soliciting comments for improving this supplement is
prominently placed in all Census Bureau publications that cite ASEC data and a
similar statement is included in the technical documentation that accompanies the
ASEC microdata files.

We also published a notice of our intent to ask the ASEC supplement questions in
the

January 14, 2015, edition of

the

Federal Register

(80FR, p. 1893).

The notice invited comments on the necessity and practicality of the data collection
and comments on various other aspects of the proposed collection. We received no
comments in response to the notice, as of the date of submission to OMB.

Finally, the advance letters (see Attachments D and F) provide respondents with
an address at the Census Bureau and at the OMB to which they can submit general
comments on the survey, specifically those regarding respondent burden.

Question 9. Paying Respondents
We do not pay the CPS respondents or provide them with gifts.

Question 10. Assurance of Confidentiality
We will collect these supplemental data in compliance with the Privacy Act of
1974. Each sample household will receive an advance letter approximately one week
before the start of the initial CPS interview (see Attachment D). The letter includes the
information required by the Privacy Act of 1974, informs each respondent of the
voluntary nature of the survey, and states the estimated time required for participating
in the survey.

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Additionally, interviewers must ask each respondent if he/she received the
advance letter and, if not, will provide a copy of the letter to each respondent and allow
sufficient time for him/her to read its contents.

Upon request, interviewers also

provide households with the pamphlet on "How the Census Bureau Keeps Your
Information Strictly Confidential," which reaffirms the confidentiality assurances and
mentions the Census Bureau's past performance in assuring confidentiality (see
Attachment E). All information given by respondents to Census Bureau employees is
held in strict confidence under Title 13, United States Code, Section 9. Each Census
Bureau employee has taken an oath to that effect and is subject to a jail penalty and/or
a substantial fine if he/she discloses any information given to him/her.

Question 11. Justification for Sensitive Questions
The sources of income and assets are among the kinds of data collected and
possibly considered of a sensitive nature. The Census Bureau takes the position that the
collection of these types of data is necessary for the analysis of important policy and
program issues, and consequently has structured the questions to lessen their
sensitivity. The Census Bureau pledges its commitment to keep all survey responses
confidential (Attachment E), and response is voluntary, however, each unanswered
question lessens the accuracy of the final data.

Question 12. Estimate of Hour Burden
The total estimated respondent burden is 32,500 hours for fiscal year 2015. We
base this estimate on previously conducted ASEC supplements and previous use of
automated interviewing procedures in the CPS. The actual interview time is dependent
upon the size of the household.

For the ASEC, there will be approximately 78,000 households interviewed with
one respondent per household.

Each interview will take approximately 25 minutes;

therefore, the total estimated respondent burden is 32,500 hours for fiscal year 2015.
See Section B for a size breakdown of the various segments of the sample.

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Question 13. Estimate of Cost Burden
There are no costs to the respondents other than that of their time to respond.

Question 14. Cost to Federal Government
We estimate the cost to the government of the CPS program to be $94 million in
fiscal year 2014. The costs are to be borne by the Census Bureau, BLS, and other
government agencies, if involved. The estimated cost of including the ASEC questions
is $2 million in fiscal year 2014 and is borne by the Census Bureau and BLS.

Question 15. Reason for Change in Burden
There is no change in burden.

Question 16. Project Schedule
We will conduct the CPS, of which this supplement is a part, during the months of
February, March and April.

Processing of this supplement will commence in May.

The Public Use file will be released in September. We will publish advance reports
based on the CPS data in September. Final reports will follow throughout the middle
of the following year.

March ASEC Publications
The following publications are released annually based on the ASEC data:
a) Income, Poverty, and Health Insurance Coverage in the United States
b) Alternative Income Estimates in the United States
c) America’s Families and Living Arrangements
d) Geographic Mobility
e) Educational Attainment (since 1947).
f) In addition to the Census Bureau publications listed above, BLS has
published yearly results from the ASEC supplement (educational attainment,
marital history, and work experience) in news releases, articles in the Monthly
Labor Review, and special bulletins.

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Question 17. Request to Not Display Expiration Date
The ASEC Supplement is administered as part of the CPS monthly interview.
However, this supplement (as well as all the CPS supplements) bears an OMB control
number and expiration date which is different from the basic CPS interview. The
OMB control number and expiration date for the CPS basic interview is included in
the advance letter we give respondents (see Attachment F).

Because of these

complexities and the anticipated respondent confusion involved with expressing a
separate control number and expiration date to respondents for the supplement
questions, we do not wish to display the OMB control number and expiration date for
the CPS ASEC Supplement.

Question 18. Exceptions to the Certification
There are no exceptions to the certification.