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 extension of a currently approved collection. The Annual
Social and Economic Supplement (ASEC) is currently approved through
December 31, 2018 with OMB Control Number 0607-0354.

The U.S. Census Bureau has conducted the ASEC annually for over 70 years, and
will conduct it in conjunction with the February, March, and April Current
Population Survey (CPS). The following authorities establish the legal
sufficiency for conducting this work.

For the U.S. Census Bureau: 1) Title 13, United States Code, Sections 141 and
182; and for the Bureau of Labor Statistics, 2) Title 29, United States Code,
Sections 1-9.

For the Bureau of Labor Statistics (BLS) who co-sponsors this supplement, and on
whose behalf the U.S. Census Bureau will conduct this survey, Title 29, United
States Code, Sections 2 and 8, authorizes the collection, collation, and reporting of
statistics related to labor force conditions (Section 8 is specific to unemployment
for those of Hispanic origin).

The proposed supplement, as it will appear in the CPS instrument, is shown in
Attachment A. The instrument questionnaire, which is unchanged since its redesign
in 2015, contains the same items that were in the 2016 ASEC instrument.

This request also asks for clearance for the forms that are used in conjunction with

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the ASEC supplement. These forms include:

Form No.

Description

Attachment

BC-1428

Confidentiality Brochure.

F

BC-1428 (SP)

Same letter as above translated into Spanish.

G

CPS-580 (ASEC)(L)

Advance letter sent to each household in
sample.

H

CPS-580 (L)SP

Same letter as above translated into Spanish.

I

CPS-676

Pamphlet with information from the ASEC.

J

CPS-676 (SP)

Same pamphlet as above but in Spanish.

K

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 Q48AAQ52Cs1 Q56a-Q73A1Rc, 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
Data from the ASEC are used for statistical purposes only, and cannot be used to
reveal a person’s identity or responses to the survey. Analysis of the data is
performed in a variety of ways by various users. 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.

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The 2019 health insurance items (pages 104-117 in Attachment A) collect data on
five possible categories of health insurance coverage, as listed below:

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,
supplemental nutrition assistance program (SNAP), 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 SNAP benefits 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 (Q87r through Q88) on the SNAP benefits identify which
household members received SNAP benefits during the previous year. These
data, along with the detailed supplemental income data, allow for a more

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comprehensive evaluation of the SNAP benefits program and measure the extent
of participation among eligible families.
Items Q93-Q94rn2 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 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 cross-tabulating
fuel assistance recipients/nonrecipients with their socioeconomic characteristics.
This allows analysts to determine whether funds are reaching eligible households.

d. Supplemental Poverty Measures (See Attachment A: Items VALPROPSMORTYN)
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 eager 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

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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.

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, and CPS supplements such as the ASEC.

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,

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which enables measurements of wealth and well-being.

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.

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 and ASEC 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

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

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

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

Jack Schmoulowitz
Social Security Administration
(410) 965-0179

Robert Rector
Heritage Foundation
(202)546-4400

Jennifer Madans
National Center for Health Statistics
[email protected]

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

Jessica Vistnes
Agency for Healthcare Research and Quality
[email protected]

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

Kathleen Call
SHADAC
[email protected]

Joel Cohen
Agency for Healthcare Research and Quality
[email protected]

Michael Karpman
Urban Institute
[email protected]

Geena Kim
Congressional Budget Office
[email protected]

Bruce Meyer
U.S. Census Bureau and Visiting Scholar at
the American Enterprise Institute
[email protected]

Paul Fronstin
Employee Benefit Research Institute
[email protected]

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.

Also published was a notice of intent to ask the ASEC supplement questions in the
May 8, 2018, edition of the Federal Register (83FR, p. 20790). The notice invited
comments on the necessity and practicality of the data collection and comments on

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various other aspects of the proposed collection.

In response to the notice, we received two comments from an anonymous citizen
voicing concern about the need for collection of these data. (The need for this
survey is actually addressed in Question 2 of Supporting Statement A)

Finally, advance letters (see Attachments D and H) 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 Attachments D & E). 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.

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 Attachments F & G). 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

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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 D), 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 2019. 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. The average time of the interview is 25 minutes;
therefore, the total estimated respondent burden is 32,500 hours for fiscal year
2019. See Part B for a size breakdown of the various segments of the sample.

Question 13. Other Cost to Respondents
There are no costs to the respondents other than that of their time to respond. The
estimated total annual respondent cost burden is based on the estimated
respondent hour burden for the demographic items, which is 17,700 hours.
Therefore, the estimated total annual respondent cost burden based on these hours
is $473,298. For individuals, the wage rate is $26.74 per hour based on hourly
earnings for employees as reported by the Bureau of Labor Statistics.

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Question 14. Cost to Federal Government
We estimate the cost to the government of the CPS program to be $89 million in
fiscal year 2019. 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 2019 and is borne by the Census Bureau and
the 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 and Poverty in the United States
b) Health Insurance in the United States
c) Alternative Income Estimates in the United States
d) America’s Families and Living Arrangements
e) Geographic Mobility
f) Educational Attainment (since 1947).
g) 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 for the CPS basic interview is included in
the advance letter we give respondents (see Attachment D). 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 request a waiver of the requirement 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.