This paper introduces a novel metric for assessing the effectiveness of social safety net programs called the poverty relief ratio. Unlike traditional measures that fail to account properly for varying income levels across countries, this new tool accurately reflects policy impacts even when adjusting for different definitions of poverty.

The measure calculates the relationship between market income and government transfers, determining whether current support meets low-income households' basic needs. By incorporating both program benefits and pre-existing market conditions, it provides a more comprehensive understanding than standard approaches.

Using simple language, we can explain how this works: It answers the question 'Are we providing enough to those who have too little?' by comparing actual income support given against what would be needed to fully meet all low-income households' requirements. This approach considers both federal policies and state-level variations in program implementation.

Key Findings:

• Introduces poverty relief ratio as a new measurement tool

• Demonstrates that this measure provides more accurate assessments than standard metrics

• Shows effectiveness across different policy contexts and geographic scales

Real-World Relevance:

This innovative method helps policymakers evaluate if their safety net programs are truly making a difference in reducing poverty. By providing clearer insights into program performance, it supports evidence-based decision-making for better social welfare policies.