A Profile of Non-Labor Income

Transcription

1 A Profile of Non-Labor Income County Region Blaine County ID, Custer County ID Produced by Economic Profile System-Human Dimensions Toolkit EPS-HDT September 27, 2011

2 About the Economic Profile System-Human Dimensions Toolkit (EPS-HDT) About EPS-HDT EPS-HDT is a free, easy-to-use software application that produces detailed socioeconomic reports of counties, states, and regions, including custom aggregations. EPS-HDT uses published statistics from federal data sources, including Bureau of Economic Analysis and Bureau of the Census, U.S. Department of Commerce; and Bureau of Labor Statistics, U.S. Department of Labor. The Bureau of Land Management and Forest Service have made significant financial and intellectual contributions to the operation and content of EPS-HDT. See for more information about the other tools and capabilities of EPS-HDT. For technical questions, contact Ray Rasker at eps-hdt@headwaterseconomics.org, or Headwaters Economics is an independent, nonprofit research group. Our mission is to improve community development and land management decisions in the West. The Bureau of Land Management, an agency within the U.S. Department of the Interior, administers million acres of America's public lands, located primarily in 12 Western States. It is the mission of the Bureau of Land Management to sustain the health, diversity, and productivity of the public lands for the use and enjoyment of present and future generations. The Forest Service, an agency of the U.S. Department of Agriculture, administers national forests and grasslands encompassing 193 million acres. The Forest Service s mission is to achieve quality land management under the "sustainable multiple-use management concept" to meet the diverse needs of people while protecting the resource. Significant intellectual, conceptual, and content contributions were provided by the following individuals: Dr. Pat Reed, Dr. Jessica Montag, Doug Smith, M.S., Fred Clark, M.S., Dr. Susan A. Winter, and Dr. Ashley Goldhor-Wilcock. About EPS-HDT

3 Table of Contents Page Non-Labor Income Relative Size How large is non-labor income relative to total personal income? 1 How has non-labor income changed? 2 Non-Labor Income Components What are the major components of non-labor income? 3 Non-Labor Income Benchmarks How does regional non-labor income compare to the U.S.? 4 How does non-labor income compare across geographies? 5 Data Sources & Methods 6 Note to Users: This report is one of fourteen reports that can be produced with the EPS-HDT software. You may want to run another EPS-HDT report for either a different geography or topic. Topics include land use, demographics, specific industry sectors, the role of non-labor income, the wildland-urban interface, the role of amenities in economic development, and payments to county governments from federal lands. For further information and to download the free software, go to: This report contains color-coded text. BLUE TEXT describes data in figures specific to selected geographies. Blue text appears on report pages next to or below figures. BLACK TEXT describes what is being measured and data sources used. Black text appears at the top of study guide pages under the heading "What do we measure on this page?" RED TEXT explains methodologies and the importance of the information. Red text appears in the middle of study guide pages under the headings "Why is this important?" and "Methods." GREEN TEXT lists additional resources that help with interpretation of the information. Green text appears at the bottom of study guide pages under the heading "Additional Resources." The EPS-HDT software also allows the user to "push" the tables, figures, and interpretive text from a report to a Word document. At that point, you can keep some text (most often blue and black text) and delete other text (most often red and green text). Blue text can serve as a starting point for additional description and interpretation of data unique to specific geographies. Table of Contents

4 How large is non-labor income relative to total personal income? This page compares non-labor sources of income and labor earnings. Non-Labor Income Relative Size Non-Labor Share of Total Personal Income, 2009 (Thousands of 2010 $s) Blaine County, ID Custer County, ID County Region U.S. Total Personal Income ($1000) 1,308, ,784 1,452,788 12,367,718,840 Non-Labor Income 671,904 62, ,367 4,395,767,376 Dividends, Interest, & Rent 570,951 34, ,667 2,228,924,544 Transfer Payments 100,954 27, ,701 2,166,842,832 Labor Earnings 636,100 82, ,421 7,971,951,464 Percent of Total Non-Labor Income 51.4% 43.1% 50.5% 35.5% Dividends, Interest, & Rent 43.7% 24.0% 41.7% 18.0% Transfer Payments 7.7% 19.2% 8.9% 17.5% Labor Earnings 48.6% 56.9% 49.5% 64.5% Non-labor income and Labor earnings may not add to total personal income because of adjustments made by the Bureau of Economic Analysis to account for contributions for social security, cross-county commuting, and other factors. In 2009, Blaine County, ID had the largest percent of total personal income from non-labor sources (51.4%), and the U.S. had the smallest (35.5%). 60% 50% Percent of Total Personal Income from Non-Labor Sources, % In 2009, dividends, interest, & rent was the largest source of non-labor income in the County Region (41.7%), and transfer payments was the smallest (8.9%). 30% 20% 10% 0% Blaine County, ID Custer County, ID County Region U.S. Dividends, Interest, & Rent Transfer Payments Data Sources: U.S. Department of Commerce Bureau of Economic Analysis, Regional Economic Information System, Washington, D.C. Table CA05N. Page 1

5 How has non-labor income changed? This page describes trends in labor and non-labor sources of income (in real terms) over time. Non-Labor Income Relative Size From 1970 to 2009, dividends, interest, and rent grew from $36 million to $606 million, an increase of 1591 percent. From 1970 to 2009, transfer payments grew from $15 million to $129 million, an increase of 751 percent. From 1970 to 2009, labor earnings grew from $142 million to $718 million, an increase of 407 percent. Millions of 2010 $s Components of Non-Labor Income Compared to Labor Earnings, County Region Dividends, interest, and rent Labor Earnings Transfer Payments In 1970, non-labor income represented 26.4 percent of total personal income. By 2009, non-labor income had increased to 50.5 percent of total personal income. In 1970, dividends, interest, and rent represented 18.6 percent of total personal income. By 2009, dividends, interest, and rent had increased to 41.7 percent of total personal income. Non-Labor Income, Percent of Total Personal Income, County Region 60% 50% 40% 30% 20% In 1970, transfer payments represented 7.8 percent of total personal income. By 2009, transfer payments had increased to 8.9 percent of total personal income. 10% 0% Dividends, interest, and rent Transfer Payments Data Sources: U.S. Department of Commerce Bureau of Economic Analysis, Regional Economic Information System, Washington, D.C. Tables CA05 & CA05N. Page 2

6 Non-Labor Income Components What are the major components of non-labor income? This page describes the components of non-labor income, how they have changed over time (in real terms). Components of Non-Labor Income, County Region, 2009 (Thousands of 2010 $s) Blaine County, ID Custer County, ID County Region U.S. Total Non-Labor Income ($1000) 671,904 62, ,367 4,395,767,376 Dividends, Interest, Rent 570,951 34, ,667 2,228,924,544 Total Transfer Payments 100,954 27, ,701 2,166,842,832 Government payments to individuals 96,814 26, ,775 2,110,157,188 Retirement & disability insurance benefits 45,100 12,831 57, ,991,112 Medical payments 30,372 9,867 40, ,045,524 Medicare 22,180 7,373 29, ,458,166 Medicaid 7,880 2,353 10, ,905,270 Military ,682,089 Income maintenance benefits ("welfare") 3,696 1,458 5, ,430,871 Unemployment insurance benefits 13,392 1,119 14, ,275,312 Veterans benefit payments 1, ,126 52,272,436 All other gov't payments to individuals 1, ,707 57,677,651 Payments to nonprofit institutions 2, ,897 33,338,936 Business payments to individuals ,155 13,290,446 Percent of Total Blaine County, ID Custer County, ID County Region U.S. Dividends, Interest, Rent 85.0% 55.6% 82.5% 50.7% Total Transfer Payments 15.0% 44.4% 17.5% 49.3% Government payments to individuals 14.4% 43.2% 16.9% 48.0% Retirement & disability insurance benefits 6.7% 20.5% 7.9% 16.2% Medical payments 4.5% 15.8% 5.5% 20.6% Medicare 3.3% 11.8% 4.0% 11.6% Medicaid 1.2% 3.8% 1.4% 8.9% Military 0.0% 0.2% 0.1% 0.2% Income maintenance benefits ("welfare") 0.6% 2.3% 0.7% 5.0% Unemployment insurance benefits 2.0% 1.8% 2.0% 3.0% Veterans benefit payments 0.2% 1.6% 0.3% 1.2% All other gov't payments to individuals 0.2% 0.4% 0.2% 1.3% Payments to nonprofit institutions 0.4% 0.7% 0.4% 0.8% Business payments to individuals 0.1% 0.3% 0.2% 0.3% From 1970 to 2009, dividends, interest, and rent grew from $36 million to $606 million, an increase of 1591 percent. From 1970 to 2009, age-related transfer payments grew from $10 million to $87 million, an increase of 799 percent. Millions of 2010 $s Components of Non-labor Income, County Region Dividends, Interest, & Rent Age-Related Transf. Payments (Retire., Disab. & Medicare) Income Maintenance Transf. Payments (Welfare & Medicaid) Other Transfer Payments Data Sources: U.S. Department of Commerce Bureau of Economic Analysis, Regional Economic Information System, Washington, D.C. Tables CA05N & CA35. Page 3

7 How does regional non-labor income compare to the U.S.? Non-Labor Income Benchmarks This page describes how the region is specialized (or under-specialized) in components of non-labor income. The figure illustrates the difference between the region and the U.S. by comparing non-labor income as a share of total personal income and with location quotients. A location quotient is generally the percent of local employment in a sector divided by the percent employment in the same sector in the U.S. It is a ratio that measures specialization, using the U.S. as a benchmark. A location quotient of more than 1.0 means the local area is more specialized in that sector relative to the U.S. A location quotient of less than 1.0 means it is less specialized. While location quotients are normally used to calculate employment specialization, they are used here to measure the relative degree of specialization in non-labor income. Some economists use location quotients as a way to calculate basic activity - activities that bring outside money into the local economy. Non-labor income, much of which originates outside of a local market, is a part of the economic base in most geographies. Percent Total Personal Income in Non-Labor Income, County Region vs. United States, 2009 Income Share Location Quotient Income Share Location Quotient County Region U.S. County Region County Region vs. U.S. County Region vs. U.S. Dividends, Interest, & Rent 41.7% 18.0% 2.3 Age-Related Transfer Payments Income Maintenance Transfer Payments Other Transfer Payments 6.0% 9.9% % 4.9% % 2.7% 0.7 0% 50% County Region U.S. In 2009, dividends, interest, & rent had the highest location quotient score (2.3) and income maintenance transfer payments had the lowest (0.2). Data Sources: U.S. Department of Commerce Bureau of Economic Analysis, Regional Economic Information System, Washington, D.C. Tables CA05N & CA35. Page 4

8 How does non-labor income compare across geographies? Non-Labor Income Benchmarks This page compares the change in non-labor income for the geographies selected and the U.S. The information is indexed (1998=100) so that data from geographies with different size economies can be compared and to make it easier to understand the relative rate of growth or decline of non-labor income over time. Non-Labor Income Non-Labor Income (Index 1998 = 100) Blaine County, ID County Region U.S. Custer County, ID From 1998 to 2009, Blaine County, ID had the fastest rate of change in non-labor income, and Custer County, ID had the slowest. Data Sources: U.S. Department of Commerce Bureau of Economic Analysis, Regional Economic Information System, Washington, D.C. Tables CA05 & CA05N. Page 5

9 Data Sources Regional Economic Information System Bureau of Economic Analysis, U.S. Department of Commerce Tel Data Sources & Methods The EPS-HDT Non-Labor report uses published statistics from government sources that are available to the public and cover the entire country. All data used in EPS-HDT can be readily verified by going to the original source. The contact information for databases used in this profile is: Methods EPS-HDT core approaches EPS-HDT is designed to focus on long-term trends across a range of important measures. Trend analysis provides a more comprehensive view of changes than spot data for select years. We encourage users to focus on major trends rather than absolute numbers. EPS-HDT displays detailed industry-level data to show changes in the composition of the economy over time and the mix of industries at points in time. EPS-HDT employs cross-sectional benchmarking, comparing smaller geographies such as counties to larger regions, states, and the nation, to give a sense of relative performance. EPS-HDT allows users to aggregate data for multiple geographies, such as multi-county regions, to accommodate a flexible range of userdefined areas of interest and to allow for more sophisticated cross-sectional comparisons. Adjusting dollar figures for inflation Because a dollar in the past was worth more than a dollar today, data reported in current dollar terms should be adjusted for inflation. The U.S. Department of Commerce reports personal income figures in terms of current dollars. All income data in EPS-HDT are adjusted to real (or constant) dollars using the Consumer Price Index. Figures are adjusted to the latest date for which the annual Consumer Price Index is available. Page 6