I want to replicate the statistics on the poverty rate for families and individuals. I would like some guidance on how to do this.
This is what I think I should do:
Calculate the poverty rate for families first. Comare family income to the poverty threshold for their given size. Find the ratio of families below the poverty line to those above. Do I need to do any weighting?
Next, calculate the poverty rate for individuals. Basically assume that every individual in a poor families is poor themselves. For every family below the poverty line, add up all the individuals in that family. Compare the total number of individuals below the poverty line to the total number above.
Does that sound right?