Analysis of Unearned Income in Rural and Urban Pennsylvania 1

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1 Analysis of Unearned Income in Rural and Urban Pennsylvania By: Todd Behr, Dr. Constantinos Christofides, and Dr. Pattabiraman Neelakantan East Stroudsburg University of Pennsylvania November 2015 EXECUTIVE SUMMARY This research analyzed the growth of unearned income in rural and urban Pennsylvania counties over the 10- year period of , and identified the socio-economic and demographic variables that have contributed to this growth. It also examined unearned income in rural and urban Pennsylvania counties, Pennsylvania as a whole, and the U.S. over a 40-year period to compare long term trends in personal income. Data Sources and Definitions The researchers used data from the U.S. Department of Commerce s Bureau of Economic Analysis (BEA), the U.S. Bureau of Labor Statistics, the Pennsylvania Department of Labor and Industry, the U.S. Census Bureau, and the Pennsylvania Department of Environmental Protection. They also used the Social Security Administration Handbook to define unearned and earned income as follows: Unearned income is all income not earned, including: in-kind support and maintenance (food or shelter) given to an individual or received by an individual; private pensions and annuities; periodic public payments such as Social Security benefits, Railroad Retirement benefits, Department of Veterans Affairs pension and compensation payments, civil service annuities, workers' compensation, unemployment compensation, and payments based on need involving federal funds; life insurance proceeds and other death benefits; gifts and inheritances; support and alimony payments; prizes and awards; dividends and interest; rents and royalties (except those royalties defined as earned income); and certain payments not considered wages for Social Security purposes such as in-kind payments to certain agricultural workers, tips under $20 per month, and jury fees. Earned income includes: wages paid for services performed by employees; military pay; net earnings from self-employment; payments for participating in workshops; sickness or temporary disability payments; and certain royalties and honorariums (such as royalty payments to an individual in connection with any publication of the work of the individual or if an individual receives a royalty as part of his/her trade or business). Analysis of Unearned Income in Rural and Urban Pennsylvania 1

2 Results According to the research, education was the most significant factor affecting earned income, and urban counties, whose populations tended to include larger percentages of college-educated workers, received significantly higher wages. Urban counties also had significantly higher net earnings than rural counties. These earnings also surpassed the national average net earnings. The highest per capita net earnings were recorded in Montgomery County at $47,719 in The lowest were in Forest County at $12,124. The majority of urban counties had net earnings higher than the state average and the great majority of rural counties had lower net earnings than the state average. The research also found that rural Pennsylvania counties received significantly lower income maintenance payments and lower levels of retirement benefits than urban counties. In general, rural counties in Pennsylvania had lower levels of per capita earned income from , and also lower unearned income per capita than urban counties. The growth of earned income in urban counties during that 40-year study period was greater than in rural counties. Because of the slower growth of earned income in rural counties, these counties became increasingly dependent on transfer payments, which include retirement and other income, unemployment insurance compensation, and income maintenance. The rather surprising conclusion is that unearned income in rural Pennsylvania became a larger percentage of personal income, not because rural county residents received more government transfer payments than urban counties, but because rural net earnings have lagged behind urban earnings. This persistent and growing earned income gap has contributed to the increasing reliance on unearned income among rural county residents. The research also examined the impact of the natural gas extraction industry, which expanded in Pennsylvania after 2005, by comparing the income levels of Pennsylvania counties in 2002 to income levels in According to the research, certain rural counties located in the Marcellus Shale region in northeastern and southwestern Pennsylvania experienced higher rates of growth in net earnings due to gas drilling activities between 2002 and Conclusions The study found that per capita personal income of rural Pennsylvania counties increased from $3,931 in 1972 to $37,256 in Urban county personal income grew from $4,948 to $47,991 during the same four decades. The results indicated that the main reason for the greater relative growth of unearned income in rural Pennsylvania counties is not that unearned income has grown faster, but that earned income of rural counties has not kept pace with earned income of urban counties. Therefore, as the gap between rural and urban county earned income has increased, so has the reliance of rural county residents on unearned income. Finally, the research found that the most important determinant of earned income is the educational attainment of workers as well as the growth of high-earnings industries. Therefore, to promote higher growth of earned Analysis of Unearned Income in Rural and Urban Pennsylvania 2

3 income in rural counties, local and state policies should encourage strategies that contribute to higher educational attainment among rural populations, focus on efforts to retain educated workers in rural counties, and promote the attraction and growth of industries that generate higher wages and salaries. TABLE OF CONTENTS Introduction... 4 Goals and Methodology... 7 Results... 8 Part I: Descriptive Statistical Analysis... 8 Part II: Analytical Model Conclusions Bibliography Appendix A Appendix B Appendix C Appendix D This project was sponsored by a grant from the Center for Rural Pennsylvania, a legislative agency of the Pennsylvania General Assembly. The Center for Rural Pennsylvania is a bipartisan, bicameral legislative agency that serves as a resource for rural policy within the Pennsylvania General Assembly. It was created in 1987 under Act 16, the Rural Revitalization Act, to promote and sustain the vitality of Pennsylvania s rural and small communities. Information contained in this report does not necessarily reflect the views of individual board members or the Center for Rural Pennsylvania. For more information, contact the Center for Rural Pennsylvania, 625 Forster St., Room 902, Harrisburg, PA 17120, telephone (717) , info@rural.palegislature.us, Analysis of Unearned Income in Rural and Urban Pennsylvania 3

4 INTRODUCTION This study analyzed the growth of unearned income in rural and urban Pennsylvania counties during the past 10 years and identified the socio-economic and demographic variables that have contributed to this growth. According to the Social Security Administration Handbook 2136, unearned income is defined as all income not earned, including: 1) In-kind support and maintenance (food or shelter) given to an individual or received by an individual; 2) Private pensions and annuities; 3) Periodic public payments such as Social Security benefits, Railroad Retirement benefits, Department of Veterans Affairs pension and compensation payments, civil service annuities, workers' compensation, unemployment compensation, and payments based on need involving federal funds; 4) Life insurance proceeds and other death benefits; 5) Gifts and inheritances; 6) Support and alimony payments; 7) Prizes and awards; 8) Dividends and interest; 9) Rents and royalties (except those royalties defined as earned income); and 10) Certain payments not considered wages for Social Security purposes such as in-kind payments to certain agricultural workers, tips under $20 per month, and jury fees. Earned income is defined by the Social Security Administration (Handbook 2134) as: 1. Wages paid for services performed by employees; 2. Military pay; 3. Net earnings from self-employment; 4. Payments for participating in workshops; 5. Sickness or temporary disability payments; and 6. Certain royalties and honorariums [such as royalty payments to an individual in connection with any publication of the work of the individual or if an individual receives a royalty as part of his/her trade or business (see (b)]. Total personal income is income received by households from all sources and is either earned or unearned. Personal income has grown consistently in the United States during the past four decades but the earned income component has declined, while the unearned income component has increased. In 1972, earned income in the United States was 75 percent of personal income and unearned 25 percent. In 2012, the earned portion of personal income was down to 65 percent and unearned income grew to 35 percent. Analysis of Unearned Income in Rural and Urban Pennsylvania 4

5 Personal income in Pennsylvania has reflected the national trend and its composition has experienced the same decline in earned income and the same increase in unearned income as the nation. The decrease in earned income as a percentage of total personal income and the subsequent increase of unearned income was more severe among rural Pennsylvanian counties. (The Center for Rural Pennsylvania defines rural counties as those whose population density is less than 284 persons per square mile. In 2012, 48 counties were classified as rural and 19 counties were classified as urban. The urban counties are concentrated around Philadelphia and Allegheny counties.) In 1972, rural Pennsylvania income consisted of 75 percent earned and 25 percent unearned. Forty years later in 2012, the earned income of rural Pennsylvania counties declined to 60 percent of total personal income and unearned income increased to 40 percent. The unearned portion of personal income among urban counties in Pennsylvania also increased, but not by as much as the rural counties: 24 percent in 1972 to 35 percent in The initial stage of this study looked at the historical trends and factors that have been responsible for the growing dependence of American households on unearned income and compared the national trends to those in Pennsylvania. Some key variables included in this study were the age composition of the population, the declining labor force participation rate, the increase in life expectancy, regional migration, the growth and decline of specific industries and other factors. In addition to the time series type of analysis that examined changes over the past four decades, the study also determined the effects of interregional differences on earned and unearned incomes of rural and urban counties in Pennsylvania for the most recently available data (2012). The dependence of rural households in Pennsylvania on unearned income has grown more significantly than urban households. The analytical section of this study considered a number of variables that have contributed to the changing composition of personal income in rural Pennsylvania counties, and more specifically, on the greater growth of unearned income among rural county households. This part of the study employed statistical techniques that estimated the impact of specific regional variables on the various components of unearned income. According to the U.S. Department of Commerce s Bureau of Economic Analysis, there are four broad categories of unearned income: Unemployment Insurance Compensation Income Maintenance Retirement and Other (both private pensions and Social Security retirement benefits) Property Income (Dividends, Interest and Rent) Unemployment insurance compensation depends on the state of the national economy, rising during periods of recession and declining when the economy is expanding. Since certain industries are more sensitive to national Analysis of Unearned Income in Rural and Urban Pennsylvania 5

6 economic conditions than others, the industrial composition of the economies of the various counties will determine the increase of unemployment rates and unemployment compensation during recessions. The specific variables influencing unemployment insurance compensation and the statistical findings are discussed in the analytical section of the study. Income maintenance consists of supplemental security income payments, family assistance, food stamps and other assistance payments. Areas with high poverty rates and more single parent families usually require greater income maintenance payments. A large number of other socioeconomic factors also influence income maintenance payments. The analytical section of this study lists the most significant variables and measures their impact on income maintenance payments to the households of the various counties in Pennsylvania. Retirement and other consists of retirement and disability insurance benefit payments, medical benefits, veteran benefits and other government payments. These payments depend primarily on the age distribution of the residents of a region and have grown significantly as the nation s population has grown older due to improvements in healthcare and living conditions. The specific findings are discussed in the analytical section of the study but, as expected, counties with more elderly residents receive larger retirement payments. Dividends, interest and rent are considered unearned income but they are, in fact, the result of investments in stocks, bonds and real estate. The larger a person s earned income, the greater the amount available for such investments. The most important determinant of property income is therefore the present and past earned income of individuals. The analytical section of this study examines other factors that influence the flow of dividends, interest and rent and statistically estimates the impact of these variables. Net earnings are also analyzed and the variables affecting earned income are identified because ultimately unearned income is financed through taxes imposed on earned income. For example, payroll taxes finance retirement income and medical expenses for the elderly, and unemployment insurance helps pay for the unemployment benefits.the analytical section of this study includes a regression model that estimates the effect of variables like education, age and other factors that determine household earned income. This is significant because earned income growth sustains the growth of unearned income. The findings of this study provide state government officials and policy-makers with relevant information regarding the growth rates of the various types of unearned income for both rural and urban households in Pennsylvania. Based on those historical trends, future government transfer payments can then be anticipated. This will allow the estimation of needed tax revenues to finance such transfers. The growth rates of earned income will also provide useful information regarding future potential taxable income, which will determine the ability of earned income to sustain the growth of unearned income. Analysis of Unearned Income in Rural and Urban Pennsylvania 6

7 GOALS AND METHODOLOGY The study goals were to examine earned and unearned income and their components in rural and urban Pennsylvania counties over the 10-year period of and compare them to each other; and to examine earned and unearned income in rural and urban Pennsylvania counties, the state and the nation as a whole over a 40-year period and determine any trends. To conduct the study, the researchers first reviewed relevant academic and government literature regarding the definitions and determinants of earned and unearned income. They also constructed an extensive database for all counties, Pennsylvania and the U.S., which contained income, labor, business establishment and socio-demographic statistics for the 10-year period of and in some instances for the last 40 years to better determine long-term trends. For the literature review, the research team used: BEA s publication, Regional Definitions: Glossary of Terms Specific to the Regional Program, to define and explain the measurement of the various components of earned and unearned income; the U.S. Department of Labor s publication, Catalogue of Workforce Information Sources: Decision-Making Assistance for Workforce and Economic Development, to identify federal, state and private sources of economic and socio-demographic data; and other relevant academic, government and professional publications focused on the determinants of personal income, the historical trends of unearned income, the distribution of income and the historical evolution of government assistance programs to individuals and households. For data on personal income, net earnings, transfer payments, and dividends, interest and rent, the researchers used BEA file CA30: Regional Economic Profiles, and BEA file CA35 Personal Current Transfer Receipts. For wages and earnings data, they used BEA file CA34: Wage and Salary Summary, and BEA file CA05N: Personal Income by Major Source and Earnings by NAICS Industry. They used BEA file CA25N: Total Full-time and Part-time Employment by NAICS Industry for employment data; the U.S. Bureau of Labor Statistics Occupational Employment and Wage Program (compiled for groupings of rural counties)for occupational data; the Pennsylvania Department of Labor and Industry s Labor Force Employment and Unemployment Statistics for labor force participation rates; the U.S. Census Bureau s County Business Patterns for business establishment, employee and annual payroll data; U.S. Census Bureau nonemployer statistics for proprietorship data; and the Pennsylvania Department of Environmental Protection s Office of Oil and Gas Management data on Marcellus Shale. With these data, the researchers could describe trends for all components of unearned income, net earnings, labor market variables, occupational categories, establishment information and other socio-demographic and economic characteristics of rural and urban counties, Pennsylvania and the nation. Next, the researchers summarized changes in county per capita personal income and its components, particularly the various types of unearned income, and compared these changes to the state and national averages. Analysis of Unearned Income in Rural and Urban Pennsylvania 7

8 These trends were then linked to trends in other social, demographic and economic variables to determine whether certain variables are associated with such trends. They then estimated five equations designed to determine the impact of certain county variables on net earnings, unemployment insurance compensation, income maintenance benefits, retirement and other benefits and dividends, interest, and rent received by rural and urban county households. They used the latest data available and per capita income to control for county population differences. Their focus was on inter-county differences rather than changes over time (cross-section data). The five equations were selected to explain the five components of county per capita personal income as follows: The earned income component of personal income. The most important determinants of earned income were: education, experience, the industrial composition of the county and the percentage of residents commuting to jobs in other counties. Unemployment compensation per capita. The most important variable affecting unemployment compensation was the unemployment rate in the county, which reflected the impact of national economic conditions on the local economy and the types of industries that exist in the various counties. Income maintenance benefits received by the households in Pennsylvania counties. These are greatly influence by the prevailing poverty rates, the number of elderly residents with a disability and the number of single-parent households in the county. County retirement income. The single most important factor was the age distribution in the county, specifically the percentage of population over age 65. Property income of households in the county (dividends, interest and rent). This component of personal income appeared to be strongly influenced by income and wealth in each county as well as by the number of business establishments. RESULTS Part I: Descriptive Statistical Analysis BEA collects income data for the U.S., including data for individual states, Metropolitan Statistical Areas and counties. These data, which are not adjusted for inflation, are available at the county level from 1969 through 2012 from the Bureau s Local Area Personal Income and Employment series. Unless stated otherwise, the information in this section of the report was acquired from File CA30: Economic Profiles series. 1 National data are adjusted for inflation but county cost of living indices are not estimated by the Bureau of Labor Statistics. So, such adjustments were not possible. 1 Data descriptions and methodologies used by the Bureau of Economic Analysis can be found in the publication Local Personal Income Methodology, published by the BEA in May It is available at Analysis of Unearned Income in Rural and Urban Pennsylvania 8

9 An area s personal income is divided by the BEA into 1. Net Earnings (or earnings adjusted for place of work to determine earnings by place of residence); 2. Dividends, Interest and Rent, and 3. Personal Current Transfer Receipts. For the sake of clarity, the terms property income and transfer income will be used in this report for the second and third income components respectively. All of the county and state income data used in this section are recorded as received by the residents of that county, and the sources of income can be divided into earned income and unearned income. Earned income or net earnings depends on the size and composition of a county s labor force. It also depends on worker characteristics, such as age, education, skills and occupation, which influence employment and wages. In addition, the size and number of county businesses and proprietorships and their structure across industries and occupations is important in providing employment opportunities for local workers. Finally, the abilities and desires of local residents to commute to other counties are also important in determining the net earnings in a given county. Unearned income is divided into property income and transfer income. Property income is received in the forms of dividends, interest and rent, and it may be somewhat misleading to classify this component as unearned, as the initial investments in stock, interest-bearing securities and deposit accounts and rental property may initially have come from past earned income (as opposed to inherited wealth). It can be further argued that income from investments is earned and represents a reward to those who initially postponed consumption, took risks, and supplied financial capital for productive and consumption activities. Nonetheless, the present study will use the term unearned income to distinguish it from current employment activities and to conform to the terminology used in other studies. Transfer income represents income that is collected from current workers through income and payroll taxes and is transferred through various government programs to individuals or their designees. The Bureau of Economic Analysis divides the transfer income into 1. Retirement and other this category include a large number of components. The most important components are Private Pensions and Social Security retirement benefits, 2. Unemployment Insurance Compensation, and 3. Income Maintenance depending on the government program and circumstances of the recipient. Retirement and other income benefits are primarily based on the age or the health status of the recipient and consist of payments made under the Medicare and Medicaid programs, as well as disability, veterans, and federal education benefits. (The relative size of each component of transfer income in Pennsylvania for 1992, 2002 and 2012 can be found in Appendix A.) These benefits can represent actual cash payments or they can represent in-kind payments in which the government program pays benefits to a provider offering goods and services to the recipient. Social Security is an example of a cash program while Medicare and Medicaid are examples of in-kind programs. To qualify for Social Security and Medicare benefits, FICA taxes are deducted from the worker s salary and are matched by his or her employer. The size of the Social Security benefits received by the retiree is a reflection of his or her past income, and the initial amount is adjusted each year to compensate for inflation. In addition, the worker s spouse is entitled to either one-half of the spouse s benefits (regardless of whether or not he or she Analysis of Unearned Income in Rural and Urban Pennsylvania 9

10 worked) or his or her own benefits, whichever is larger. Although Social Security benefits are fixed on an inflation-adjusted basis, Medicare benefits are more volatile and they can be very large as they depend on the health status of the recipient as well as the expenses associated with treating his or her medical condition. Unemployment insurance compensation is paid to those who are temporarily unemployed and typically lasts for 26 weeks unless benefits are extended due to unusually harsh economic conditions. During the recession, the benefits were available for approximately 100 weeks in Pennsylvania. Unemployment compensation benefits are available to those who had contributions made on their behalf by their employer and are therefore based on income earned in the past. The final component of transfer income, income maintenance receipts, is directed to the segment of the population that is either poor or classified as the working poor. 2 Temporary Assistance to Needy Families and the Earned Income Tax programs are examples of government programs designed to assist the individuals and families falling into these two categories. 3 Charts 1 and 2 show that net earnings were the largest component of personal income in both the U.S. and Pennsylvania in The charts also indicate that the relative shares of the personal income components were very similar for the U.S. and Pennsylvania. Source: BEA SA30 Economic Profile. 2 The federal government sets the poverty level for individuals and makes an adjustment for the size of the household. The level is adjusted annually to account for inflation. The working poor consists of people who fall below the poverty level and are members of the labor force and who are either working or actively seeking employment for at least 27 weeks during the year. 3 These programs are defined in Appendix A. Analysis of Unearned Income in Rural and Urban Pennsylvania 10

11 Source: BEA SA30 Economic Profile. Charts 3 and 4 indicate that the components of transfer income were also similar for the U.S. and Pennsylvania in 2012, with the largest share attributed to the retirement and other category. Source: BEA SA30 Economic Profile. Analysis of Unearned Income in Rural and Urban Pennsylvania 11

12 Source: BEA SA30 Economic Profile. The Macroeconomic Environment and Changes in Personal Income The relative importance of the different income components noted in Charts 1 through 4 change over time as a consequence of changing national macroeconomic conditions. Although the initial focus of this study was to examine changes in personal income during the last 10 years, the researchers also examined the period to show that the declining relative importance of net earnings and the increasing relative importance of unearned income have occurred during the last four decades. Secondly, an examination of a longer time period than the last ten years may provide greater insights into the broad forces affecting personal income and its components. For example, conditions of rapid economic growth are likely to increase net earnings and therefore decrease the need for unemployment insurance compensation as well as assistance from income maintenance programs. In addition, periods of high stock market returns and high interest rates should increase the importance of property income relative to net earnings and income, all else the same. Although changes in macroeconomic variables affect county income as well as national income, they will have different impacts at the county level depending on an area s unique socio-demographic and business characteristics. Consequently, the data description section of this report notes the changes in major macroeconomic forces between 1972 and 2012 and describes how the components of personal income have changed during this period in the U.S. and Pennsylvania, as well as in Pennsylvania s rural and urban counties. Analysis of Unearned Income in Rural and Urban Pennsylvania 12

13 The Macroeconomic Environment During the Last 10 Years According to the National Bureau of Economic Research, the U.S. has experienced seven recessions since 1969, when the BEA began collecting county-level data. Table 1 indicates that the last recession, which occurred between December 2007 and June 2009, was particularly harsh in both its length and depth. Table 1:United States Recessions as Defined by the National Bureau of Economic Research Start of Recession End of Recession Duration in Months Percentage Decline Output levels, labor market conditions, interest rates, stock market returns, and inflation rates are some of the many variables that are affected by economic recessions and expansions, and each of these changes can affect the components of personal income. Table 2 shows that during the last 10 years interest rates and inflation rates were low and fairly stable, partly due to the state of the economy, but also due to Federal Reserve policies that were designed to keep interest rates low in an attempt to stimulate the economy after the last recession. On the other hand, stock market returns, as measured by the NASDAQ Composite Index, fluctuated widely and were initially associated with the decline in economic activity associated with the aftermath of the 2001 recession. The larger and longer declines in NASDAQ returns in 2008 and 2009 were more severe than in other years due to the severity of the last recession as well as the collapse of the financial system during this period. in Real (inflationadjusted) output December 1969 November November 1973 March January 1980 July July 1981 November July 1990 March March 2001 November December 2007 June Data source: National Bureau of Economic Research. Analysis of Unearned Income in Rural and Urban Pennsylvania 13

14 Table 2:Selected National Macroeconomic Data Civilian Labor Force Participation Rate (Annual Inflation Rates (CPI % Change Moody's AAA Corporate Bond Nominal (not adjusted for Real (adjusted for inflation) Unemployment Rate (Annual Average) NASDAQStock Market % Change from Previous Year Average) from Year Ago) Interest Rates (Annual Average) inflation) GDP % Change from Previous Year GDP % Change from Previous Year Source: Federal Reserve Bank of St. Louis - FRED - Federal Reserve Economic Data System. However the most significant factors potentially affecting the components of personal income are the rather large decline in the civilian labor force participation rates during the last 10 years, the high unemployment rates beginning in 2009, and the growing number of workers reaching retirement age. The civilian labor force participation rate is calculated by dividing the number of people who are either working or looking for work by the population between the ages of 16 and 64. According to the Bureau of Labor Statistics, this rate has been declining since it reached its peak of 67.1 in People have been leaving the labor force in growing numbers as the baby boom generation retires, and in recent years, they have also been leaving due to poor labor market conditions. The Congressional Budget Office estimates that approximately 1.5 percentage points of the approximately 3 percentage point decline in the civilian labor force participation rate between 2007 and the end of 2013 were caused by people leaving due to age, while another 0.5 percentage points were due to discouraged Analysis of Unearned Income in Rural and Urban Pennsylvania 14

15 workers who gave up looking for a job and have permanently left the labor force. The final 1 percentage point decline has been attributed to people who have temporarily left the labor force and are expected to return once labor market conditions improve. 4 The overall decline in the civilian labor force represents a potential problem for the national and local economies. As people leave the labor force, net earnings, and consequently tax revenues, decrease and the need for government funding for the elderly and the unemployed increases. Further, the possible long-term problems created by the declining labor force participation rate have been magnified in the short-run by the high unemployment rates in During this period, national unemployment compensation benefits increased from $33 billion in fiscal year 2007 to $94 billion in fiscal year 2012.The increase was compounded because the government extended the time during which individuals could collect unemployment benefits from 26 weeks to approximately 100 weeks. 5 Changes in Personal Income During the Last 10 Years The trends of the various income categories in Pennsylvania s rural and urban counties are discussed in this section. Personal income and transfer components and their annual growth rates during the last ten years are also considered. In addition, comparisons to the U.S. and Pennsylvania are used as benchmarks for rural and urban Pennsylvania counties. Table 3 shows that Pennsylvania rural counties accounted for 27 percent of the state s population but only 22 percent of the state s personal income in 2012.Further, it also shows that rural county residents in Pennsylvania received 21 percent of the state s total net earnings and 28 percent of the state s transfer income. 4 The Slow Recovery of the Labor Market, Congressional Budget Office, February 2014, page 1. 5 Unemployment Insurance in the Wake of the Recent Recession, Congressional Budget Office, November Analysis of Unearned Income in Rural and Urban Pennsylvania 15

16 Table 3:Rural and Urban Percentages of the Statewide Total, Rural Population 27% Urban Population 73% Rural Personal Income 22% Urban Personal Income 78% Rural Net Earnings 21% Urban Net Earnings 79% Rural Property Income 22% Urban Property Income 78% Rural Transfer Income 28% Urban Transfer Income 72% Rural Income Maintenance Income 28% Urban Income Maintenance Income 72% Rural Unemployment Insurance Compensation Income 23% Urban Unemployment Insurance Compensation Income 77% Rural Retirement and Other Income 28% Urban Retirement and Other Income 72% Source: BEA CA 30 Economic Profiles. The following sections present the changes in personal income and its components for the decade , and rural and urban trends are compared to Pennsylvania and the U.S. as a whole. Changes in the Contributions to Personal Income During the Last 10 Years Table 4 shows that the relative importance of net earnings in the U.S. declined from 2002 to 2010 before slightly rebounding in Analysis of Unearned Income in Rural and Urban Pennsylvania 16

17 Table 4:Components of Personal Income during the Last 10 Years United States Net Earnings 68% 68% 68% 68% 67% 66% 65% 65% 64% 65% 65% Property Income 14% 14% 14% 14% 14% 14% 15% 18% 18% 18% 17% Transfer Income 18% 17% 17% 18% 19% 20% 20% 18% 17% 18% 18% Pennsylvania Net Earnings 66% 67% 67% 67% 66% 65% 65% 64% 64% 64% 64% Property Income 17% 17% 17% 16% 17% 18% 18% 16% 16% 16% 16% Transfer Income 17% 17% 16% 17% 17% 17% 18% 20% 21% 20% 19% Rural Net Earnings 63% 63% 63% 64% 63% 62% 60% 59% 59% 60% 60% Property Income 17% 16% 16% 15% 15% 17% 17% 16% 15% 16% 16% Transfer Income 21% 21% 21% 22% 22% 22% 23% 26% 25% 24% 24% Urban Net Earnings 68% 68% 68% 68% 67% 66% 66% 65% 65% 66% 65% Property Income 17% 17% 17% 16% 18% 18% 18% 16% 16% 16% 16% Transfer Income 15% 15% 15% 16% 15% 16% 16% 19% 19% 18% 18% Source: BEA SA 30 Economic Profiles. Similar patterns are observed in Pennsylvania and in the state s rural and urban counties, but with one significant difference: the relative size of net earnings in Pennsylvania s rural counties was approximately 5 percentage points less than it was in Pennsylvania s urban counties and the U.S. To account for this difference, rural counties relied more heavily on transfer income, and in 2012, the relative importance of transfer income in rural counties was 6 percentage points higher than it was in the U.S. and Pennsylvania s urban counties. However, by 2012, transfer income s share of personal income was 3 percentage points higher than it was in 2002 in both rural and urban counties while it returned to the same initial level in the U.S. Although Table 4 shows that rural counties relied more heavily on transfer income than urban counties during the last 10 years, Table 5 indicates that the differences in the components of transfer income between rural and urban were not as clear cut. Analysis of Unearned Income in Rural and Urban Pennsylvania 17

18 Table 5:Components of Transfer Income During the Last 10 Years United States Income Maintenance 9% 10% 10% 11% 10% 10% 12% 11% 12% 12% 11% Unemployment Insurance 4% 4% 3% 2% 2% 2% 3% 6% 6% 5% 4% Compensation Retirement and Other 86% 86% 87% 87% 88% 88% 86% 83% 82% 83% 85% Pennsylvania Income Maintenance 7% 7% 8% 8% 8% 8% 9% 8% 10% 10% 9% Unemployment Insurance 5% 5% 4% 3% 3% 3% 4% 8% 8% 6% 5% Compensation Retirement and Other 88% 87% 89% 89% 89% 89% 87% 84% 83% 84% 86% Rural Income Maintenance 6% 6% 7% 7% 7% 7% 8% 7% 8% 8% 8% Unemployment Insurance 6% 6% 4% 3% 3% 3% 4% 9% 8% 6% 5% Compensation Retirement and Other 88% 88% 89% 90% 90% 90% 88% 84% 84% 86% 87% Urban Income Maintenance 7% 8% 8% 8% 8% 9% 10% 9% 10% 10% 10% Unemployment Insurance 5% 5% 3% 3% 2% 2% 3% 7% 8% 6% 5% Compensation Retirement and Other 87% 87% 88% 89% 89% 89% 87% 84% 82% 84% 85% Source: BEA SA 30 Economic Profiles. The difference in retirement and other income between rural and urban counties was very slight. Urban counties relied more heavily on income maintenance receipts than rural counties, but once again the difference was minimal, as it was for unemployment insurance compensation. However, it is worth noting the cyclical nature of unemployment insurance compensation, which dramatically increased in both rural and urban counties between 2008 and 2009, and only gradually decreased thereafter. This pattern fits with numerous studies that consider unemployment rates to be a lagging economic indicator. That is, unemployment rates tend to increase only after the economy has declined for a few quarters as businesses are reluctant to lay off workers only to find that the economic downturn was only temporary and the workers who were laid off were able to find employment elsewhere. Similarly, even after the economy rebounds, firms are reluctant to incur the expenses of hiring and training new workers until they are convinced that the increase in economic activity is permanent and not Analysis of Unearned Income in Rural and Urban Pennsylvania 18

19 temporary. Finally, it is also worth noting the slight, but noticeable increase in the importance of income maintenance receipts during the last ten years. Growth of Personal Income in Pennsylvania During the Last 10 Years Significant changes occurred in the national economy from A recovery that began after the 2001 recession was followed by the longest and deepest recession since World War II. This last recession began in December 2007 and lasted until June As illustrated in Chart 5, the decline in the housing market in , and the decrease in the stock market in severely depressed the growth of property income, which was further reduced by falling interest rates beginning in In addition, the growth of net earnings also declined as unemployment increased and wage rates stagnated and did not rebound until % 15% 10% 5% 0% % -10% Chart 5 - Pennsylvania - Personal Income Components - Annual Growth Rates % Personal Income Net Earnings Property Income Transfer Income Source: BEA SA30 Economic Profile; BLS IPD-PCE 2009$*. *Data adjusted for inflation with 2009=100. As a consequence of the declining growth rates of earned income and property income during the later years of this period, transfer income helped to replace some of the lost income of Pennsylvanians. Indeed, the relationship between property income and net earnings on the one hand and transfer income on the other is quite striking in Chart 5. In particular, they appear to be mirror images of each other over the period. Finally, as shown in Charts 1 and 2, net earnings represent approximately two thirds of personal income, and this accounts for the close relationship between these two variables. Chart 6 shows the very large percentage changes in unemployment compensation each year compared to the other components of transfer income. Beginning with the 2001 recession, the growth rates began to increase after 2004, and they reached a peak in 2009 at the height of the last recession. By way of contrast, retirement and other income was much steadier and reflected the long-term demographic forces associated with the aging of the Analysis of Unearned Income in Rural and Urban Pennsylvania 19

20 population. As shown in Charts 3 and 4, the retirement and other income component represents approximately 86 percent of transfer income, and this accounts for the close relationship between the growth rates of transfer income and retirement income over the period. Finally, income maintenance growth rates were slightly more volatile than the growth rates of retirement income, although they exhibited relatively large swings between 2007 and Source: BEA SA30 Economic Profile; BLS IPD-PCE 2009$*. *Data adjusted for inflation with 2009=100. Table 6: Rural and Urban Counties - Personal Income Per Capita Components (2009$) - Annual Growth Rates Rural Urban Year Personal Net Property Transfer Personal Net Property Transfer Income Earnings Income Income Income Earnings Income Income % 1.8% -2.3% 1.7% 0.8% 1.0% -0.5% 1.7% % 3.4% 0.2% 2.5% 2.2% 3.0% 0.8% 0.4% % 0.6% -5.8% 3.6% 0.9% 0.5% -0.9% 4.4% % 1.8% 5.6% 2.5% 3.6% 2.1% 11.4% 1.5% % 0.4% 13.0% 3.8% 1.9% 0.3% 6.6% 3.7% % -1.6% 1.5% 4.2% 0.1% 0.0% -2.6% 3.7% % -3.1% -6.7% 13.1% -1.7% -2.5% -11.4% 12.3% % 2.5% -1.4% 0.8% 0.7% 0.7% -3.1% 4.2% % 4.4% 7.3% -1.9% 2.4% 2.8% 6.1% -1.9% % 1.6% 3.9% 0.4% 0.8% 0.7% 3.0% -0.4% Source: BEA CA 30 and BLS IPD-PCE 2009$*. *Data adjusted for inflation with 2009=100. Analysis of Unearned Income in Rural and Urban Pennsylvania 20

21 Annual growth rates of personal income and its components were essentially the same for rural and urban counties in Pennsylvania from 2002 to 2012, which indicates that the growth of county earned and unearned income is driven by trends in the national economy (See Table 6). Source: BEA CA 30 and BLS IPD-PCE 2009$*. *Data adjusted for inflation with 2009=100. Transfer income components are influenced by the state of the national economy and also by sociodemographic changes (See Table 7). Unemployment insurance compensation grew substantially in 2002, 2008 and 2009 for both rural and urban Pennsylvania counties because of national recessions and then decreased during periods of economic recovery. Income maintenance benefits increased erratically but accelerated during periods of recession for both rural and urban counties. Retirement and other income grew steadily for rural and urban counties during the period as the nation s population aged. Per Capita Income Components: This section presents the major categories of earned and unearned income for rural and urban counties in Pennsylvania and compares the levels of these variables from the 2000 Census to the most recent 2010 Census values. Note that the Census Bureau reports its 2000 findings in 2002 and the 2010 figures are reported by the American Community Survey for the period All income figures are adjusted for inflation using BEA s implicit price deflator for personal consumption expenditures with a base year This simply means that both earned and unearned income values are in 2009 dollars. Analysis of Unearned Income in Rural and Urban Pennsylvania 21

22 Earned Income Earned income consists primarily of wages and salaries. The analytical section of this study has identified education, age, population density and commuting as the main determinants of net earnings. The following tables identify and list the ten counties in Pennsylvania that have recorded the highest net earnings per capita and the ten counties whose residents received the lowest net earnings per capita in 2002 and (The average net earnings of the remaining 47 counties are calculated and compared to the highest and the lowest net earnings). Tables containing statistics for all 67 counties are included in the Statistical Appendix. Overall, the highest net earnings were received by the residents of counties that were located in the southeastern portion of Pennsylvania, adjacent to the large metropolitan area of Philadelphia and the southwestern portion of the state around the metropolitan area of Pittsburgh. Source: BEA Economic Profiles CA30/2000 Census/ACS Analysis of Unearned Income in Rural and Urban Pennsylvania 22

23 Counties with the highest net earnings were characterized by high population density and the largest percentage of college-educated residents. Montour County was the one rural county in the highest net earnings group with a low population density (140 people per square mile) but the high percentage of residents with Bachelor s degrees or higher contributed to the higher per capita net earnings. There were two other rural counties with high net earnings, Washington and Butler, but these two counties are adjacent to the Pittsburgh metropolitan area and their population density is very close to the average population density of Pennsylvania. Both Butler and Washington counties had a relatively high percentage of population with Bachelor s degrees or higher and Washington benefited from the Marcellus drilling activity. Map 1: Real Net Earnings Per Capita 2002 (Base Year 2009) Source: BEA Economic Profiles CA30. Analysis of Unearned Income in Rural and Urban Pennsylvania 23

24 Map 2: Real Net Earnings Per Capita 2012 (Base Year 2009) Source: BEA Economic Profiles CA30. It is interesting to note that, in 2002, there were nine urban and one rural (Butler) among the highest net earnings counties; 10 years later, two urban counties (Lehigh and Northampton) dropped out of the top 110 and were replaced by two rural counties, Washington and Montour. Counties with the lowest net earnings were all rural in both 2002 and They were all sparsely populated, had a significantly lower percentage of collegeeducated residents and were located away from large metropolitan areas. Furthermore, their educated labor force grew very little and the percentage of residents over age 65 increased faster than other counties, leading to very low growth of net earnings. The highest growth of net earnings per capita for the period were achieved by Green (63 percent), Washington (33.5 percent), Indiana (28.9 percent) and Bradford (24.2 percent) counties. Analysis of Unearned Income in Rural and Urban Pennsylvania 24

25 Map 3: Growth in Net Earnings Per Capita Source: BEA Economic Profiles CA30; data adjusted for inflation using 2009$*. *Data adjusted for inflation with 2009=100. The fastest growing counties had one common characteristic: large numbers of Marcellus Shale wells. Apparently the increase in economic activity caused by the expansion of the extraction and construction industries contributed to the significant growth of net earnings per capita for these counties. In general, the most important variables affecting the net earnings of counties in Pennsylvania were: The educational levels of county residents; Population density (or close proximity to densely populated areas); High earnings occupations (highly correlated with educational attainment); Percentage of residents commuting to work; and Median age of the labor force. The highest net earnings were received by residents of counties with high population densities or counties that were adjacent to large urban centers so their residents could commute to higher paying jobs. Net earnings per capita are greatly influenced by the educational levels of county residents and the types of industries and occupations in the county. The lowest net earnings per capita were received in counties with low population density and lower educational attainment. Unfortunately, as workers migrate toward areas with industries and occupations paying higher wages, conditions deteriorate in low earnings areas. Several rural counties in Pennsylvania have actually experienced declining populations during the period , and the percentage of residents over age 65 increased at Analysis of Unearned Income in Rural and Urban Pennsylvania 25

26 higher rates than other counties. This simply means that as younger and more educated workers leave low income counties in pursuit of higher wages, they leave behind an older and less educated group of residents. The trend of lower earnings leading to outmigration, an aging population and losses of educated workers was overcome by several counties in Pennsylvania whose economies were stimulated by the emerging natural gas industry. More specifically, rural counties located in the northern tier and also adjacent counties experienced significantly higher growth rates in net earnings and a very similar trend appeared among counties located in the southwest region and adjacent counties. Map 4: Growth in Personal Income Per Capita Source: BEA Economic Profiles CA30; data adjusted for inflation using 2009$*. *Data adjusted for inflation with 2009=100. Local Economic Impacts Related to Marcellus Shale Development. The Marcellus Shale Impacts Study: Chronicling Social and Economic Change in North Central and Southwest Pennsylvania, The Marcellus Impacts Project Report #8: The Center for Rural Pennsylvania, Sept (page 7) High Core, High Activity Counties. The most striking example of the impact of the gas drilling industry was Green County. In 2002, Green County s net earnings per capita ranked 65 th out of 67 counties in Pennsylvania. In 2012, Green s net earnings grew by 52.6 percent and the county ranked 19 th in the state in net earnings per capita. Analysis of Unearned Income in Rural and Urban Pennsylvania 26

27 Unearned Income Unearned Income may be broadly divided into property income and transfer payments. Property income consists of dividends, interest and rent while transfer payments consist of mostly government payments to the elderly, the unemployed and the poor. The distinction between property income and transfer income is significant because property income represents returns to assets held by individuals (stocks, bonds and real estate) as opposed to transfer income that includes retirement income, unemployment compensation and income maintenance benefits. Transfer income is essentially a government transfer payment financed by taxes. Property Income Property income is derived from wealth accumulated by individuals through savings and investments in income generating assets. Wealth is therefore dependent on income and the ability to save. The analytical model of this study actually confirmed that the most significant variable affecting dividends, interest and rent is indeed net earnings. Other variables that influenced property income were the average gross monthly rent in the region, the average number of business establishments in the county, and the current net worth per capita. The highest per capita property income in 2002 was received by residents of urban counties. These were the counties with the highest net earnings per capita. In 2012, Montgomery and Chester counties were the top counties in terms of per capita property income. These counties had the highest net earnings per capita also. Three rural counties received higher than average property incomes in 2012: Butler, Cameron and Sullivan. Butler County had high per capita net earnings, a higher than average percentage of college educated residents and a higher than average number of commuters. Cameron County had a large number of commuting residents (41.5 percent of the labor force) and is surrounded by five counties with high gas drilling activity. Sullivan County also had a large number of commuters (38.5 percent) and has been identified as a large recipient of rents, royalties, patents and copyrights income from Marcellus gas development in the northern tier. Analysis of Unearned Income in Rural and Urban Pennsylvania 27

28 Source: BEA Economic Profiles CA30/2000 Census/ACS Transfer Income Transfer Income consists of retirement, unemployment compensation and income maintenance benefits. The largest component of transfer income is the heterogeneous category of retirement and other. This includes Individual Retirement Accounts (IRAs), Social Security retirement payments, Medicare, Medicaid, Veterans Benefits, and other miscellaneous benefits. Analysis of Unearned Income in Rural and Urban Pennsylvania 28

29 The increase in longevity across the nation has caused this category of transfer income to grow at high rates throughout the U.S. and at even higher rates in Pennsylvania. The most important cause of the growth in this category is the increase in the percentage of people over age 65. In 2013, 14 percent of all Americans were over age 65. In Pennsylvania, 15.4 percent of the population was over 65 in 2010 and that rate is projected to increase to 19 percent by Source: BEA Economic Profiles CA 30. The increase in the elderly population also increases the demand for medical services financed by Medicare and Medicaid. Retirement and other income is therefore the largest component of unearned income, representing 85 percent of all transfer payments. In 2002, seven of the 10 highest recipients of retirement and other income were rural. The three urban counties in the top 10 retirement and other income category were Philadelphia, Luzerne and Lackawanna. Analysis of Unearned Income in Rural and Urban Pennsylvania 29

30 MAP 5: Real Retirement Income Per Capita 2002 (Base Year 2009) Source: BEA Economic Profiles CA30. MAP 6: Real Retirement Income Per Capita 2012 (Base Year 2009) Source: BEA Economic Profiles CA30. Analysis of Unearned Income in Rural and Urban Pennsylvania 30

31 The common characteristic of all these counties was the larger than average percentage of the population over age 65. In 2012, only two urban counties appeared in the top 15 retirement income category, Beaver and Lackawanna. The remaining top 13 were rural, whose percentage of elderly population ranged from 17.8 percent to 24.5 percent, compared to the Pennsylvania state average of 15.4 percent. An interesting observation is that younger and more educated workers are moving to urban centers in search of higher wages. This migration leads to an increase in the percentage of the elderly population in rural counties and a decrease in the educational attainment of the remaining rural workforce. MAP 7: Percent of the Population 65 and Over, 2000 Source: 2000 Census. Analysis of Unearned Income in Rural and Urban Pennsylvania 31

32 MAP 8: Percent of the Population 65 and Over, Source: American Community Survey (ACS) Unemployment Insurance Compensation Unemployment compensation per capita in 2002 was higher among rural Pennsylvania counties whose unemployment rates were relatively high. In 2012, unemployment insurance payments were even higher, increasing considerably because of the slow recovery from the recessions. Analysis of Unearned Income in Rural and Urban Pennsylvania 32

33 MAP 9: Real Unemployment Income Per Capita 2012 (Base Year 2009) Source: BEA Economic Profiles CA 30. Analysis of Unearned Income in Rural and Urban Pennsylvania 33

34 Source: BEA Economic Profiles CA 30. The highest unemployment insurance compensation per capita in 2012 was again experienced by rural counties. These counties had an average unemployment rate of 9.6 percent compared to the middle counties average of 8 percent. The counties with the highest unemployment compensation per capita also had the highest percentage of adult population without a high school diploma (Unemployment among this group is significantly higher than average). Another common characteristic of the high unemployment counties is low population density. Income Maintenance The final category of unearned income is income maintenance, which includes supplemental security income payments, family assistance, food stamps, the Earned Income Tax Credit, and other programs. Analysis of Unearned Income in Rural and Urban Pennsylvania 34

35 Source: BEA Economic Profiles CA 30; 2000 Census; ACS Income maintenance programs have grown considerably from 2000 to The research identified several socio-demographic and economic variables that have contributed to the growth of income maintenance programs. The highest per capita income maintenance benefits were received by counties whose population included a high percentage of single parent households, high poverty rates, high percentage of high school drop-outs and higher than average percentage of people with disabilities. Analysis of Unearned Income in Rural and Urban Pennsylvania 35

36 MAP 10: Real Income Maintenance Per Capita 2012 (Base Year 2009) Source: BEA Economic Profiles CA 30. MAP 11: Growth in Income Maintenance Per Capita Source: BEA Economic Profiles CA 30. Higher income maintenance recipients were mostly rural counties, with the exception of two urban counties, Philadelphia and Erie, which also had the same high income maintenance-inducing characteristics. Analysis of Unearned Income in Rural and Urban Pennsylvania 36

37 The rural counties with the highest income maintenance were counties with very low net earnings per capita and low population density. The two urban counties of Philadelphia and Erie in the high income maintenance group had relatively high net earnings per capita, but Philadelphia had the highest rate of high school dropouts, the highest poverty rate, and the highest percentage of single parent households. Erie had the highest percentage of people with disabilities, the second highest rate of poverty and the second highest rate of high school drop-outs. The Macroeconomic Environment Over the Last 40 Years The national economy has had a significant impact on the earned and unearned incomes of rural and urban Pennsylvania counties. Declining civilian labor force (CLF) participation rates in the last two decades lead to greater dependency on transfer payments. Lower inflation rates and lower interest rates were associated with lower property incomes. Lower growth in real GDP contributed to lower growth rates in earned income.higher unemployment rates caused increases in unemployment compensation. Sources: Federal Reserve Bank of St. Louis - FRED - Federal Reserve Economic Data System. Changes in the Contributions of Personal Income Over the Last 40 Years The decrease in net earnings from 1972 to 2012 and the subsequent increase in transfer income occurred at the national, state and county levels.rural Pennsylvania counties experienced slower growth in net earnings and greater growth in transfer income than urban counties during this period. Analysis of Unearned Income in Rural and Urban Pennsylvania 37

38 Source: BEA Economic Profiles SA30/CA30. Components of Transfer Income by Decade The largest and fastest growing component of transfer income was in the retirement and other category.this trend was affected by the aging population and the increasing demand for healthcare observed at the national, state and county levels.income maintenance has remained essentially unchanged as a percentage of total transfer income and unemployment compensation has slightly decreased as a percentage of the total. Analysis of Unearned Income in Rural and Urban Pennsylvania 38

39 Source: BEA Economic Profiles SA30/CA30. Growth in the Components of Personal Income Over the Last 40 Years The growth of personal income in the U.S. was greater in every decade from 1972 to 2012 than in Pennsylvania. The personal income growth in rural counties was greater than urban during Rural county personal income grew slower than urban county personal income from 1982 to 2002, but rural growth exceeded urban income growth from Rural county transfer income growth was very similar to urban counties during those four decades. Analysis of Unearned Income in Rural and Urban Pennsylvania 39

40 Source: BEA, BLS. *Data adjusted for inflation with 2009=100. Growth of Transfer Income Components by Decade The fastest growing component of transfer income is Retirement and Other. This is the result of long-run trend reflecting the changing age distribution in the United States. The other components of transfer income are greatly influenced by the state of the economy, rising during periods of recession and falling during periods of economic expansion. There were no significant differences in transfer income growth between rural and urban counties between 1972 and Analysis of Unearned Income in Rural and Urban Pennsylvania 40

41 Source: BES, BLS. *Data adjusted for inflation with 2009=100. Personal Income Levels Per Capita Data presented to this point examined percentage contributions to personal income and transfer components. The data also considered per capita dollar amounts for 2012 as well as changes in per capita dollar amounts between 2002 and However, it is also important to consider the levels of personal income and its categories and to examine whether the levels are the same in the U.S., Pennsylvania, and rural and urban counties, or whether significant differences exist among the different regional groupings. Specifically, did the gap between rural and urban counties narrow or widen for key income components over time? Relative to the U.S. and Pennsylvania personal income averages, urban Pennsylvania county personal incomes were generally higher and rural county personal incomes were generally lower. The same pattern was observed for net earnings per capita. Analysis of Unearned Income in Rural and Urban Pennsylvania 41

42 Chart 7 - Personal Income Per Capita (2009 $) $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- US Rural Urban Source: BEA SA30 and CA 30 Economic Profile; BLS IPD-PCE 2009$*. *Data adjusted for inflation with 2009=100. $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 Chart 8 - Net Earnings Per Capita (2009 $) $- US Rural Urban Source: BEA SA30 and CA 30 Economic Profile; BLS IPD-PCE 2009$*. *Data adjusted for inflation with 2009=100. Analysis of Unearned Income in Rural and Urban Pennsylvania 42

43 Though the long-run trend was similar, property income per capita in rural Pennsylvania counties was consistently lower than the urban Pennsylvania counties, Pennsylvania and the U.S. as a whole. On the contrary, transfer payments per capita in both urban and rural Pennsylvania counties exceeded the national average. $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Chart 9 - Property Income Per Capita (2009 $) US Rural Urban Source: BEA SA30 and CA 30 Economic Profile; BLS IPD-PCE 2009$*. *Data adjusted for inflation with 2009=100. $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Chart 10 - Transfer Income Per Capita (2009 $) $- US Rural Urban Source: BEA SA30 and CA 30 Economic Profile; BLS IPD-PCE 2009$*. *Data adjusted for inflation with 2009=100. Analysis of Unearned Income in Rural and Urban Pennsylvania 43

44 From 1972 to 2012, rural Pennsylvania counties received lower income maintenance per capita than urban Pennsylvania counties. Pennsylvania received lower per capita income maintenance than the entire country from the 1990s onward. $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 Chart 11 - Income Maintenance Per Capita (2009 $) $- US Rural Urban Source: BEA SA30 and CA 30 Economic Profile; BLS IPD-PCE 2009$*. *Data adjusted for inflation with 2009=100. On the other hand, both rural and urban Pennsylvania counties received higher unemployment insurance compensation per capita than the U.S. as a whole. Analysis of Unearned Income in Rural and Urban Pennsylvania 44

45 Chart 12 - Unemployment Compensation Per Capita (2009 $) $900 $800 $700 $600 $500 $400 $300 $200 $100 $- US Rural Urban Source: BEA SA30 and CA 30 Economic Profile; BLS IPD-PCE 2009$*. *Data adjusted for inflation with 2009=100. Rural and urban Pennsylvania counties received higher retirement and other per capita income than the U.S. average from 1972 to $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Chart 13 - Retirement and Other Income Per Capita (2009 $) $- US Rural Urban Source: BEA SA30 and CA 30 Economic Profile; BLS IPD-PCE 2009$*. *Data adjusted for inflation with 2009=100. Analysis of Unearned Income in Rural and Urban Pennsylvania 45

46 Part II: The Analytical Model The analytical model used five regression equations to determine the most important factors causing the variation of earned and unearned income among Pennsylvania counties, and to explain why the composition of personal income is different between rural and urban counties. Net Earnings The most significant factor affecting earned county income was the level of education. Not surprisingly, the counties with a larger percentage of adult residents holding a bachelor s degree or higher earned higher incomes. Other important determinants of earned income were: Median age (reflecting worker experience) positive and significant at 95 percent level; High earnings industries - positive and significant at 95 percent level; and Percentage of county residents working outside the county - positive and significant at 99 percent level. The statistical results were consistent with economic theory and the logical expectations that more educated and more experienced workers, who work in high earnings industries and who commute to higher paying jobs outside their county of residence earned higher incomes. The analytical model also found that urban Pennsylvania county residents earned higher incomes than rural county residents. The model also examined the impact of the Marcellus Shale industry on per capita county net earnings by using the number of Marcellus wells as a control variable. Interestingly, the estimated impact was positive but not statistically significant. Labor market variables, such as the labor force participation rate and the percentage of the county labor force actually employed, were not significant factors affecting net earnings. Unemployment Compensation Since different counties are affected differently by the national economy, the model attempted to measure the impact of other socio-demographic and economic variables on county unemployment compensation but no other variable appeared to affect county unemployment compensation significantly.since the county unemployment rate is affected by socio-demographic and economic variables such as age, education and local business patterns, the inclusion of these variables becomes redundant, and therefore they become insignificant. Rural Pennsylvania counties experienced slightly lower unemployment rates than urban counties but the difference was not significant. The different levels of unemployment compensation received by the residents of Pennsylvania counties can be explained primarily by the specific unemployment rates prevailing in those counties. Analysis of Unearned Income in Rural and Urban Pennsylvania 46

47 Income Maintenance The study found that the most important factors affecting regional income maintenance payments were the county poverty rate, the percentage of single-parent families, and percentage of the county adult residents with disabilities. The study also determined that rural Pennsylvania counties received significantly lower income maintenance payments than urban counties. Other variables, such as education, did not appear to affect income maintenance payments significantly because the impact of education is indirectly reflected in the prevailing county poverty rates. Retirement and Other Benefit Payments The growth of retirement benefits is simply the result of the aging U.S. population. Retiring baby boomers have contributed significantly to that growth. Improvements in living and health conditions have also caused an increase in life expectancy and an increase in the percentage of the population who are age 65 and older. Other variables affecting retirement and other benefit payments were the value of household assets and bank deposits. There was no significant difference between rural and urban counties but rural county households received lower retirement benefits. Dividends, Interest and Rent The most significant variable affecting dividends, interest and rent was the average level of per capita net earnings in the county. The higher the level of earned income, the greater the ability to save and invest in assets, such as stocks, bonds and real estate that produce financial returns. Other significant variables affecting dividends, interest and rent were household wealth and the average number of business establishments in each county. Rental income also was found to be affected by supply and demand conditions in the county housing market. These conditions were captured by the prevailing average gross monthly rent in the county. Analysis of Unearned Income in Rural and Urban Pennsylvania 47

48 CONCLUSIONS Per capita personal income of rural Pennsylvania counties increased from $3,931 in 1972 to $37,256 in Urban county personal income grew from $4,948 to $47,991 during the same four decades. The largest and fastest growing component of unearned income was the retirement and other category, which includes Social Security, Medicare and Medicaid. In 2012, retirement and other income amounted to 87 percent of all transfer income in rural and 85 percent of all transfer income in urban Pennsylvania counties. This is true for the nation, in general, and is driven by demographic trends and the increasing demand for healthcare. Unemployment compensation increased during periods of recession and decreased during periods of economic expansion for rural and urban counties, and for the state and the nation as a whole. There were no apparent trends in income maintenance or in property income. Income maintenance appeared to increase during recessions and decrease during economic expansions, but not significantly. Income maintenance remained relatively constant as a percentage of total transfer income, less than 8 percent for rural and less than 10 percent for urban counties. Property income was a constant percentage of personal income for rural and urban counties, remaining between 16 percent and 18 percent during the decade of National economic activity and trends have influenced the behavior of rural and urban county incomes during the period Trends in county and state incomes were parallel to the national trends, with the level of urban personal income remaining above the national average, while rural county personal income remained below the national average. The most significant factor affecting earned county income was educational attainment levels. Urban Pennsylvania counties with a higher percentage of college-educated residents earned higher than average wages, while rural counties lagged behind. Certain rural counties located in the Marcellus Shale region in northeastern and southwestern Pennsylvania experienced higher rates of growth in net earnings due to gas drilling activities between 2002 and The analytical model of this study determined there were no significant differences in unemployment compensation received by rural and urban counties in Pennsylvania: however, rural counties received lower income maintenance benefits than urban counties. The most significant factors affecting income maintenance were poverty rates, single-parent families and residents with disabilities. Retirement and other benefits was the largest category of unearned income for the nation, Pennsylvania and all Pennsylvania counties. Pennsylvania counties with higher percentages of the population over age 65 also received higher per capita retirement income. Dividends, interest and rent are classified as unearned income but they represent returns from investments that individuals made in stocks, bonds and real estate. The ability to invest depends primarily on the earned income of households and the study confirmed that counties with the highest per capita earnings also earned the highest levels of dividends, interest and rent.this component of unearned income grew at higher than average rates for rural counties located in the Marcellus Shale regions due to the growth of the natural gas extraction industry Analysis of Unearned Income in Rural and Urban Pennsylvania 48

49 between 2002 and 2012.These counties received rents, royalties, patents and copyright incomes from gas companies. The most significant variables affecting the relative growth of unearned income in the long run are the demographic characteristics of the population and these trends affect the nation, Pennsylvania and rural and urban Pennsylvania counties. The main reason for the greater relative growth of unearned income in rural Pennsylvania counties is not that unearned income has grown faster, but that earned income of rural counties has grown more slowly than earned income of urban counties. Therefore, as the gap between rural and urban county earned income has increased, so has the reliance of rural county residents on unearned income. Analysis of Unearned Income in Rural and Urban Pennsylvania 49

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54 Appendix A Category Definitions for Tables A1, A2, and A3 The following verbatim definitions refer to Tables A1, A2 and A3 in Appendix A. The definitions for these and other income accounts can be acquired at What is "Personal current transfer receipts (thousands of dollars)"? Personal current transfer receipts (thousands of dollars)- This component of personal income is payments to persons for which no current services are performed. It consists of payments to individuals and to nonprofit institutions by Federal, state, and local governments and by businesses. Government payments to individuals includes retirement and disability insurance benefits, medical benefits (mainly Medicare and Medicaid), income maintenance benefits, unemployment insurance compensation, veterans benefits, and Federal education and training assistance. Government payments to nonprofit institutions exclude payments by the Federal Government for work under research and development contracts. Business payments to persons consist primarily of liability payments for personal injury and of corporate gifts to nonprofit institutions. For a complete list of regional statistics, see Regional Definitions What is "Current transfer receipts of individuals from governments"? Current transfer receipts of individuals from governments- Current transfer receipts of individuals from governments consist of: Retirement and disability insurance benefits, medical benefits, income maintenance benefits, unemployment insurance compensation, veterans benefits, Federal education and training assistance, and other transfer receipts of individuals from governments. For a complete list of regional statistics, see Regional Definitions What is "Retirement and disability insurance benefits"? Retirement and disability insurance benefits- Retirement and disability insurance benefits consist of old-age, survivors, and disability (OASDI) benefits; railroad retirement and disability benefits; Federal and state workers' compensation; temporary disability benefits; black lung benefits; and Pension Benefit Guaranty benefits. For a complete list of regional statistics, see Regional Definitions. Analysis of Unearned Income in Rural and Urban Pennsylvania 54

55 2110 What is "Social Security benefits"? Social Security benefits- These benefits (old-age, survivors, and disability insurance benefits) consist mainly of monthly benefits received by retired and disabled workers, dependents, and survivors and lump-sum payments received by survivors. The state estimates are based on annual tabulations of payments from the Social Security Administration (SSA). The county estimates are based on SSA tabulations of the amount of monthly benefits paid to those in currentpayment status on December 31 by county of residence of the beneficiaries. For a complete list of regional statistics, see Regional Definitions What is "Excluding Social Security benefits"? Excluding Social Security benefits- These are Retirement and disability insurance benefits excluding Social Security benefits. For a complete list of regional statistics, see Regional Definitions What is "Medical benefits"? Medical benefits- Medical benefits include: 1. Medicare benefits-- These benefits are Federal Government payments made through intermediaries to beneficiaries for the care provided to individuals under the Medicare program. 2. Public assistance medical care-- These medical benefits are received by low-income individuals. These payments consist mainly of the payments made through intermediaries to the vendors for care provided to individuals under the federally assisted, state-administered Medicaid program and Children's Health Insurance Program (CHIP) and under the general assistance medical programs of state and local governments. 3. Military medical insurance benefits.- These benefits are vendor payments made under the TriCare Management Program, formerly called the Civilian Health and Medical Plan of the Uniformed Services program, for the medical care of dependents of active duty military personnel and of retired military personnel and their dependents at nonmilitary medical facilities. Analysis of Unearned Income in Rural and Urban Pennsylvania 55

56 2210 What is "Medicare benefits"? Medicare benefits- These benefits are Federal Government payments made through intermediaries to beneficiaries for the care provided to individuals under the provisions of the Medicare program. For a complete list of regional statistics, see Regional Definitions What is "Public assistance medical care benefits"? Public assistance medical care benefits- Public assistance medical care benefits consists of Medicaid, beginning in 1969, and other medical vendor payments. For a complete list of regional statistics, see Regional Definitions What is "Military medical insurance benefits"? Military medical insurance benefits- Military medical insurance benefits consist of payments made under the TriCare Management Program, formerly called the Civilian Health and Medical Plan of the Uniformed Services program (CHAMPUS), for the medical care of dependents of active duty military personnel and of retired military personnel and their dependents at nonmilitary medical facilities. For a complete list of regional statistics, see Regional Definitions What is "Income maintenance benefits"? Income maintenance benefits- Income maintenance benefits include supplemental security income payments, family assistance, food stamp payments, and other assistance payments. For a complete list of regional statistics, see Regional Definitions What is "Supplemental security income (SSI) benefits"? Supplemental security income (SSI) benefits- These benefits consist of the payments received by low-income persons who are aged, blind, or disabled from both the Federal and state governments. For a complete list of regional statistics, see Regional Definitions What is "Earned Income Tax Credit (EITC)"? Earned Income Tax Credit (EITC)- These are federal income tax credits for low-income workers, mainly those who have minor children. Eligibility for the tax credits is determined by the size of adjusted gross income, or Analysis of Unearned Income in Rural and Urban Pennsylvania 56

57 earned income, and by certain household characteristics. For a complete list of regional statistics, see Regional Definitions What is "Supplemental Nutrition Assistance Program (SNAP)"? Supplemental Nutrition Assistance Program (SNAP)- These benefits are issued to qualifying low-income individuals in order to supplement their ability to purchase food. Eligibility is determined by the state authorities' interpretation of Federal regulations; the U.S. Department of Agriculture (USDA) pays the cost of the assistance. The state and county estimates are based on county tabulations of the value of the distributed benefits from the Department of Agriculture. For a complete list of regional statistics, see Regional Definitions What is "Other income maintenance benefits"? Other income maintenance benefits- Other income maintenance benefits consists largely of general assistance; expenditures for food under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); Other Needs Assistance; refugee assistance; foster home care and adoption assistance; the 2008 Economic Stimulus Act Rebates; family assistance; Child Tax Credits; ARRA funded tax credits; other tax credits; and energy assistance. For a complete list of regional statistics, see Regional Definitions What is "Unemployment insurance compensation"? Unemployment insurance compensation- Unemployment insurance compensation includes State unemployment compensation, Unemployment compensation of Federal civilian, Unemployment compensation of railroad employees, and other unemployment compensation. For a complete list of regional statistics, see Regional Definitions What is "State unemployment insurance compensation"? State unemployment insurance compensation- State Unemployment Insurance Compensation consists mainly of payments received by individuals under state-administered unemployment insurance (UI) programs, but includes the special benefits authorized by Federal legislation for periods of high unemployment. For a complete list of regional statistics, see Regional Definitions. Analysis of Unearned Income in Rural and Urban Pennsylvania 57

58 2420 What is "Excluding state unemployment insurance compensation"? Excluding state unemployment insurance compensation- These are unemployment insurance compensation excluding state unemployment insurance compensation. For a complete list of regional statistics, see Regional Definitions What is "Veterans benefits"? Veterans benefits- Veterans benefits include veterans pension and disability benefits, veterans readjustment benefits, veterans life insurance benefits, and other assistance to veterans. For a complete list of regional statistics, see Regional Definitions What is "Education and training assistance"? Education and training assistance- Education and training assistance consists of the following: Federal fellowships- These benefits consist of the payments to outstanding science students who receive National Science Foundation (NSF) grants, the subsistence payments to the cadets at the six state maritime academies, and the payments for all other Federal fellowships. Higher education student assistance- These benefits consist of the Federal payments, called Pell Grants, for an undergraduate education for students with low incomes. Job Corps payments- these benefits are primarily the allowances for living expenses received by economically disadvantaged individuals who are between the ages of 16 and 21 and who are enrolled in the designated vocational and educational training programs. These benefits also include the adjustment allowances received by trainees upon the successful completion of their training. Interest payments on guaranteed student loans- these payments are made by the Department of Education to commercial lending institutions on behalf of the individuals who receive low-interest, deferred-payment loans from these institutions in order to pay the expenses of higher education. State educational assistance-these benefits consist of educational assistance provided by states to individuals for tuition and other educational expenses not including loans. The national and state estimates are based on data for state government expenditures for "other education assistance and subsidies" from the Census Bureau's annual State Government Finances. For a complete list of regional statistics, see Regional Definitions. Analysis of Unearned Income in Rural and Urban Pennsylvania 58

59 2700 What is "Other transfer receipts of individuals from governments"? Other transfer receipts of individuals from governments- Other transfer receipts of individuals from governments consist largely of Bureau of Indian Affairs payments, education exchange payments, Alaska Permanent Fund dividend payments, compensation of survivors of public safety officers, compensation of victims of crime, disaster relief payments, compensation for Japanese internment, and other special payments to individuals. For a complete list of regional statistics, see Regional Definitions What is "Current transfer receipts of nonprofit institutions"? Current transfer receipts of nonprofit institutions- These payments consist of the payments made by the Federal Government, state governments, local governments, and businesses to nonprofit organizations that serve individuals. These payments exclude Federal Government payments for work under research and development contracts. For a complete list of regional statistics, see Regional Definitions What is "Current transfer receipts of individuals from businesses"? Current transfer receipts of individuals from businesses- Current transfer receipts of individuals from businesses consist of personal injury liability payments to individuals other than employees. For a complete list of regional statistics, see Regional Definitions. Table A1- Composition of Transfer Income by Recipient and Source Pennsylvania 2012 Source File CA35 Personal Current Transfer Receipts Bureau of Economic Analysis BEACode Pennsylvania 2012 Percent of Personal Current Transfer Receipts Personal current transfer 1000 receipts (Transfer Income) $ 111,642, Current transfer receipts of individuals from governments $109,066,399 98% 3000 Current transfer receipts of nonprofit institutions $1,523,529 1% 4000 Current transfer receipts of individuals from businesses $1,052,989 1% Analysis of Unearned Income in Rural and Urban Pennsylvania 59

60 Table A2- Composition of Transfer Income of Individuals from Government Pennsylvania 2012 Source File CA35 Personal Current Transfer Receipts Bureau of Economic Analysis BEACode Pennsylvania Current transfer receipts (Transfer Income) of individuals from governments $109,066, Retirement and disability insurance benefits $39,572, % 2200 Medical benefits $49,188, % 2300 Income maintenance benefits $10,448, % 2400 Unemployment insurance compensation $5,426, % 2500 Veterans benefits $2,266, % 2600 Education and training assistance $2,076, % 2700 Other transfer receipts of individuals from governments $87, % Total $109,066, % Table A3 - Program Composition of Transfer Income - Pennsylvania 1992, 2002, 2012 Source File CA35 Personal Current Transfer Receipts Bureau of Economic Analysis BEA Code Pennsylvania 2012 Percent of Transfer Income 1000 Personal current transfer receipts (Transfer Income) 100% 100% 100% 2000 Current transfer receipts of individuals from governments 97% 97% 98% 2100 Retirement and disability insurance benefits 43% 39% 35% 2110 Social Security benefits 40% 37% 34% 2120 Excluding Social Security benefits 3% 2% 1% 2200 Medical benefits 35% 42% 44% 2210 Medicare benefits 20% 22% 25% 2220 Public assistance medical care benefits 15% 19% 19% 2230 Military medical insurance benefits 0% 0% 0% 2300 Income maintenance benefits 9% 7% 9% 2310 Supplemental security income (SSI) benefits 2% 2% 2% 2320 Earned Income Tax Credit (EITC) 1% 1% 2% 2330 Supplemental Nutrition Assistance Program (SNAP) 2% 1% 2% 2340 Other income maintenance benefits 4% 2% 3% 2400 Unemployment insurance compensation 7% 5% 5% 2410 State unemployment insurance compensation 6% 5% 5% 2420 Excluding state unemployment insurance compensation 0% 0% 0% 2500 Veterans benefits 2% 2% 2% 2600 Education and training assistance 2% 2% 2% 2700 Other transfer receipts of individuals from governments 0% 0% 0% 3000 Current transfer receipts of nonprofit institutions 2% 2% 1% 4000 Current transfer receipts of individuals from businesses 1% 2% 1% Analysis of Unearned Income in Rural and Urban Pennsylvania 60

61 Rural/Urban Appendix B Table B1: County Ranks in Net Earnings Per Capita Net Earnings Per Capita 2012 (2009 $) Population Per Square Mile (2010) Bachelor's degree or higher for 25+ ( ) % Employment in High Earning Industry ( ) % Management, professional, and related occupations ( ) 1 Montgomery U $44,992 1, % 26.3% 48.4% 2 Chester U $43, % 26.8% 47.4% 3 Bucks U $36,784 1, % 24.8% 41.6% 4 Delaware U $33,174 3, % 20.3% 41.5% 5 Allegheny U $32,259 1, % 19.6% 42.0% 6 Washington R $31, % 20.2% 32.9% 7 Butler R $29, % 24.0% 34.6% 8 Cumberland U $28, % 18.6% 38.8% 9 Montour R $28, % 16.7% 40.0% 10 Dauphin U $27, % 18.2% 37.0% Pennsylvania $27, % 22.2% 35.9% 11 Westmoreland U $26, % 22.6% 34.0% 12 Lehigh U $26,152 1, % 25.2% 35.7% 13 Centre R $26, % 15.6% 43.7% 14 Northampton U $25, % 25.4% 34.5% 15 Lebanon U $24, % 23.5% 29.8% 16 York U $24, % 26.7% 31.7% 17 Berks U $24, % 27.0% 31.4% 18 Philadelphia U $24,076 11, % 18.8% 35.2% 19 Greene R $24, % 12.4% 27.6% 20 Lancaster U $23, % 24.4% 31.7% 21 Beaver U $23, % 20.8% 31.6% 22 Perry R $23, % 15.3% 27.9% 23 Indiana R $22, % 15.2% 27.6% 24 Pike R $22, % 14.6% 33.5% 25 Bradford R $22, % 25.7% 27.9% 26 Lackawanna U $21, % 18.5% 33.8% 27 Lycoming R $21, % 24.2% 28.8% 28 Luzerne U $21, % 20.9% 30.2% 29 Elk R $21, % 44.0% 22.6% 30 McKean R $20, % 25.3% 28.9% 31 Franklin R $20, % 22.9% 31.7% 32 Armstrong R $20, % 22.3% 25.8% 33 Adams R $20, % 24.6% 29.4% 34 Union R $20, % 18.2% 35.1% 35 Erie U $20, % 24.4% 32.8% Analysis of Unearned Income in Rural and Urban Pennsylvania 61

62 36 Clinton R $20, % 23.3% 23.5% 37 Monroe R $20, % 18.2% 33.4% 38 Blair R $19, % 18.1% 29.3% 39 Wyoming R $19, % 23.6% 25.7% 40 Carbon R $19, % 19.5% 27.4% 41 Northumberland R $19, % 19.9% 26.1% 42 Warren R $19, % 26.0% 28.0% 43 Bedford R $18, % 20.4% 24.4% 44 Susquehanna R $18, % 21.2% 27.9% 45 Fulton R $18, % 24.8% 22.7% 46 Schuylkill R $18, % 24.9% 27.6% 47 Clearfield R $18, % 16.2% 25.3% 48 Cambria R $18, % 17.6% 30.0% 49 Lawrence R $18, % 22.9% 29.5% 50 Potter R $18, % 23.4% 28.1% 51 Mercer R $18, % 23.2% 29.4% 52 Juniata R $18, % 24.8% 24.1% 53 Crawford R $18, % 24.3% 30.0% 54 Clarion R $18, % 18.2% 29.9% 55 Jefferson R $17, % 22.1% 23.5% 56 Somerset R $17, % 19.5% 27.0% 57 Columbia R $17, % 23.5% 28.5% 58 Wayne R $17, % 15.6% 28.0% 59 Fayette R $17, % 19.1% 25.7% 60 Venango R $17, % 27.3% 26.9% 61 Tioga R $17, % 22.5% 29.1% 62 Snyder R $16, % 22.1% 25.2% 63 Mifflin R $16, % 28.3% 25.0% 64 Huntingdon R $16, % 19.9% 28.6% 65 Cameron R $15, % 39.4% 23.6% 66 Sullivan R $15, % 24.6% 24.0% 67 Forest R $11, % 12.1% 19.5% Analysis of Unearned Income in Rural and Urban Pennsylvania 62

63 Table B2: County Ranks in Property Income Per Capita Rural/Urban Property Income Per Capita (2009 $) % Population 65+ Years Old, Average Gross Monthly Rent, (Not adjusted for inflation) Net Earnings Per Capita 2012 (2009 $) Avg. No. of Business Est Per 1000 in 2Q 2011 Analysis of Unearned Income in Rural and Urban Pennsylvania 63 Current Net Worth 2005 per capita (1000s) 1 Montgomery U $12, % $1,182 $ 44, $ Chester U $10, % $1,228 $ 43, $ Bucks U $9, % $1,188 $ 36, $ Delaware U $8, % $1,056 $ 33, $ Cumberland U $8, % $887 $ 28, $ Allegheny U $8, % $792 $ 32, $ Cameron R $7, % $528 $ 15, $ Sullivan R $7, % $494 $ 15, $ Butler R $7, % $832 $ 29, $ Lancaster U $7, % $922 $ 23, $ Centre R $7, % $982 $ 26, $ Wayne R $6, % $798 $ 17, $ Pennsylvania $6, % $864 $27, $ Montour R $6, % $710 $ 28, $ Lehigh U $6, % $915 $ 26, $ Northampton U $6, % $941 $ 25, $ Washington R $6, % $680 $ 31, $ Franklin R $6, % $799 $ 20, $ Dauphin U $6, % $845 $ 27, $ Lackawanna U $6, % $704 $ 21, $ Clarion R $6, % $636 $ 18, $ Westmoreland U $6, % $662 $ 26, $ York U $6, % $842 $ 24, $ Susquehanna R $6, % $699 $ 18, $ Lycoming R $6, % $698 $ 21, $ Lebanon U $6, % $754 $ 24, $ Elk R $6, % $578 $ 21, $ Berks U $6, % $846 $ 24, $ Adams R $5, % $857 $ 20, $ Luzerne U $5, % $680 $ 21, $ Warren R $5, % $599 $ 19, $ Pike R $5, % $1,076 $ 22, $ Wyoming R $5, % $686 $ 19, $ Northumberland R $5, % $590 $ 19, $ Fulton R $5, % $645 $ 18, $ Somerset R $5, % $564 $ 17, $ Blair R $5, % $655 $ 19, $ Lawrence R $5, % $639 $ 18, $ Union R $5, % $718 $ 20, $ Mercer R $5, % $618 $ 18, $ Erie U $5, % $707 $ 20, $ Bradford R $5, % $638 $ 22, $ Columbia R $5, % $731 $ 17, $ Indiana R $5, % $739 $ 22, $ Tioga R $5, % $690 $ 17, $ Schuylkill R $5, % $607 $ 18, $ Jefferson R $5, % $556 $ 17, $ Carbon R $5, % $772 $ 19, $ 74.35

64 48 Snyder R $5, % $657 $ 16, $ Cambria R $5, % $551 $ 18, $ Potter R $5, % $623 $ 18, $ McKean R $5, % $588 $ 20, $ Juniata R $5, % $627 $ 18, $ Forest R $5, % $516 $ 11, $ Perry R $5, % $727 $ 23, $ Venango R $5, % $581 $ 17, $ Clearfield R $5, % $596 $ 18, $ Fayette R $5, % $576 $ 17, $ Beaver U $5, % $658 $ 23, $ Armstrong R $5, % $633 $ 20, $ Philadelphia U $4, % $930 $ 24, $ Crawford R $4, % $626 $ 18, $ Monroe R $4, % $1,017 $ 20, $ Greene R $4, % $595 $ 24, $ Bedford R $4, % $598 $ 18, $ Huntingdon R $4, % $562 $ 16, $ Clinton R $4, % $717 $ 20, $ Mifflin R $4, % $604 $ 16, $ Analysis of Unearned Income in Rural and Urban Pennsylvania 64

65 Table B3: County Ranks in 2012 Retirement and Other Income Per Capita Rural/Urban Retirement and Other Income Per Capita 2012 (2009 $) % Population 65+ Years Old, Cameron R $9, % 2 Venango R $9, % 3 Sullivan R $9, % 4 Cambria R $8, % 5 Fayette R $8, % 6 Lawrence R $8, % 7 Beaver U $8, % 8 Lackawanna U $8, % 9 Elk R $8, % 10 Mercer R $8, % 11 Armstrong R $8, % 12 Jefferson R $8, % 13 Snyder R $8, % 14 Blair R $8, % 15 McKean R $7, % 16 Westmoreland U $7, % 17 Schuylkill R $7, % 18 Clarion R $7, % 19 Warren R $7, % 20 Luzerne U $7, % 21 Clearfield R $7, % 22 Mifflin R $7, % 23 Potter R $7, % 24 Philadelphia U $7, % 25 Northumberland R $7, % 26 Wayne R $7, % 27 Washington R $7, % 28 Crawford R $7, % 29 Somerset R $7, % 30 Allegheny U $7, % 31 Carbon R $7, % 32 Greene R $7, % 33 Bedford R $7, % 34 Montour R $7, % 35 Erie U $7, % 36 Pike R $7, % Pennsylvania $ 7, % 37 Delaware U $7, % 38 Tioga R $7, % 39 Indiana R $7, % 40 Fulton R $6, % 41 Bradford R $6, % 42 Northampton U $6, % 43 Huntingdon R $6, % 44 Susquehanna R $6, % 45 Columbia R $6, % 46 Forest R $6, % 47 Wyoming R $6, % 48 Dauphin U $6, % 49 Clinton R $6, % 50 Lycoming R $6, % 51 Lebanon U $6, % 52 Lehigh U $6, % 53 Berks U $6, % 54 Butler R $6, % 55 Bucks U $6, % 56 Franklin R $6, % Analysis of Unearned Income in Rural and Urban Pennsylvania 65

66 57 Montgomery U $6, % 58 Juniata R $6, % 59 Adams R $6, % 60 Cumberland U $6, % 61 Perry R $6, % 62 York U $6, % 63 Lancaster U $6, % 64 Monroe R $5, % 65 Chester U $5, % 66 Union R $5, % 67 Centre R $4, % Analysis of Unearned Income in Rural and Urban Pennsylvania 66

67 Table B4: County Ranks in 2012 Unemployment Insurance Compensation Per Capita Rural/Urban Unemployment Insurance Compensation Per Capita 2012 No High School Diploma for 25+ (2008- Unemployment Rate 2012 (2009 $) 12) 1 Cameron R $ % 13.0% 2 Huntingdon R $ % 9.5% 3 Clearfield R $ % 8.7% 4 Wyoming R $ % 9.8% 5 Somerset R $ % 8.6% 6 Schuylkill R $ % 9.5% 7 Carbon R $ % 9.9% 8 Clinton R $ % 9.0% 9 Bedford R $ % 9.1% 10 Armstrong R $ % 8.6% 11 Jefferson R $ % 7.8% 12 Lycoming R $ % 7.7% 13 Luzerne U $ % 9.8% 14 Northumberland R $ % 9.1% 15 Indiana R $ % 7.7% 16 Columbia R $ % 8.0% 17 Fayette R $ % 9.2% 18 Cambria R $ % 8.7% 19 Potter R $ % 9.0% 20 Juniata R $ % 7.4% 21 Lackawanna U $ % 9.0% 22 Tioga R $ % 7.7% 23 Snyder R $ % 8.0% 24 Sullivan R $ % 9.1% 25 Clarion R $ % 8.6% 26 Perry R $ % 7.9% 27 Westmoreland U $ % 7.4% 28 Beaver U $ % 7.4% 29 Mifflin R $ % 8.5% 30 Elk R $ % 6.9% 31 Fulton R $ % 9.0% 32 Venango R $ % 7.6% 33 Lehigh U $ % 8.5% 34 Blair R $ % 7.3% 35 Washington R $ % 7.3% 36 Lawrence R $ % 8.1% Pennsylvania $ % 7.9% Analysis of Unearned Income in Rural and Urban Pennsylvania 67

68 37 Philadelphia U $ % 10.8% 38 McKean R $ % 8.0% 39 Berks U $ % 8.1% 40 Butler R $ % 6.5% 41 Allegheny U $ % 6.9% 42 Bradford R $ % 6.4% 43 Dauphin U $ % 7.7% 44 Bucks U $ % 7.4% 45 York U $ % 7.8% 46 Erie U $ % 7.8% 47 Montgomery U $ % 6.8% 48 Lebanon U $ % 6.5% 49 Greene R $ % 6.8% 50 Delaware U $ % 8.1% 51 Northampton U $ % 8.4% 52 Crawford R $ % 7.4% 53 Susquehanna R $ % 7.2% 54 Monroe R $ % 9.8% 55 Wayne R $ % 7.6% 56 Mercer R $ % 8.3% 57 Lancaster U $ % 6.7% 58 Forest R $ % 8.3% 59 Cumberland U $ % 6.6% 60 Adams R $ % 6.6% 61 Montour R $ % 6.2% 62 Chester U $ % 6.2% 63 Warren R $ % 6.5% 64 Franklin R $ % 6.8% 65 Union R $ % 7.5% 66 Centre R $ % 5.8% 67 Pike R $ % 10.9% Analysis of Unearned Income in Rural and Urban Pennsylvania 68

69 Table B5: County Ranks in Income Maintenance Per Capita Rural/Urban Income Maintenance Per Capita 2012 (2009 $) % Single Parents (Male/Female, No Spouse), Children <18) ( ) Total Poverty Rate, 2010 No High School Diploma for 25+ ( ) % Population 18 to 64 with Disability 1 Philadelphia U $2, % 26.4% 19.6% 14.5% 2 Fayette R $1, % 20.7% 15.8% 17.7% 3 Erie U $1, % 17.2% 10.1% 13.0% 4 Greene R $ % 18.0% 14.9% 14.9% 5 Lawrence R $ % 16.2% 11.7% 11.4% 6 McKean R $ % 14.9% 11.1% 15.6% 7 Cameron R $ % 14.4% 13.8% 17.4% 8 Crawford R $ % 19.7% 13.3% 14.8% 9 Mercer R $ % 16.6% 11.9% 13.7% 10 Venango R $ % 15.4% 11.5% 15.0% 11 Blair R $ % 13.3% 9.6% 12.9% 12 Luzerne U $ % 15.9% 12.2% 12.3% 13 Mifflin R $ % 16.6% 18.6% 14.4% Pennsylvania $ % 13.4% 11.7% 10.7% 14 Lackawanna U $ % 13.6% 11.7% 11.4% 15 Cambria R $ % 13.7% 11.3% 14.0% 16 Clearfield R $ % 16.8% 13.4% 11.8% 17 Armstrong R $ % 13.7% 11.9% 16.5% 18 Berks U $ % 13.7% 15.9% 10.3% 19 Allegheny U $ % 11.9% 7.4% 10.1% 20 Dauphin U $ % 13.9% 11.3% 10.4% 21 Potter R $ % 14.8% 12.4% 15.9% 22 Beaver U $ % 15.1% 9.6% 12.6% 23 Jefferson R $ % 16.3% 13.0% 12.8% 24 Lehigh U $ % 13.2% 13.6% 10.9% 25 Lycoming R $ % 17.1% 12.6% 11.6% 26 Clarion R $ % 19.0% 12.1% 12.1% 27 Warren R $ % 14.1% 10.5% 13.4% 28 Bradford R $ % 10.9% 13.4% 11.7% 29 Schuylkill R $ % 13.0% 14.1% 14.2% 30 Northumberland R $ % 15.0% 15.3% 12.4% 31 Clinton R $ % 16.9% 13.6% 11.9% 32 Fulton R $ % 10.5% 16.4% 12.6% 33 Susquehanna R $ % 12.8% 11.9% 14.5% 34 Bedford R $ % 13.6% 15.2% 13.7% 35 Delaware U $ % 10.0% 8.5% 8.5% 36 Wyoming R $ % 12.7% 10.8% 13.0% Analysis of Unearned Income in Rural and Urban Pennsylvania 69

70 37 Somerset R $ % 14.9% 15.6% 13.2% 38 Elk R $ % 11.7% 9.4% 11.3% 39 Huntingdon R $ % 14.3% 12.9% 13.6% 40 Washington R $ % 10.6% 10.0% 11.7% 41 Wayne R $ % 12.4% 12.8% 13.7% 42 Tioga R $ % 15.8% 12.0% 11.8% 43 Westmoreland U $ % 10.4% 8.1% 11.1% 44 Monroe R $ % 13.0% 10.5% 11.8% 45 Indiana R $ % 18.6% 12.7% 10.3% 46 Lebanon U $ % 11.0% 14.8% 8.9% 47 Columbia R $ % 15.4% 13.1% 8.4% 48 Carbon R $ % 12.2% 13.0% 15.1% 49 York U $ % 9.2% 12.2% 10.0% 50 Northampton U $ % 10.6% 12.0% 9.3% 51 Lancaster U $ % 10.5% 16.4% 8.3% 52 Montour R $ % 12.1% 11.3% 9.9% 53 Juniata R $ % 11.1% 17.5% 11.9% 54 Pike R $ % 9.0% 8.4% 13.9% 55 Franklin R $ % 9.5% 15.0% 8.8% 56 Sullivan R $ % 15.2% 13.1% 16.5% 57 Perry R $ % 10.1% 14.3% 11.3% 58 Snyder R $ % 13.2% 17.1% 9.0% 59 Butler R $ % 9.3% 7.6% 8.7% 60 Forest R $ % 20.4% 19.7% 24.9% 61 Adams R $ % 9.9% 14.6% 10.3% 62 Union R $ % 12.7% 15.7% 9.0% 63 Bucks U $ % 6.4% 7.1% 7.8% 64 Cumberland U $ % 7.4% 8.8% 8.3% 65 Montgomery U $ % 5.8% 6.8% 6.4% 66 Centre R $ % 18.9% 7.0% 6.7% 67 Chester U $ % 6.4% 7.3% 5.3% Analysis of Unearned Income in Rural and Urban Pennsylvania 70

71 Appendix C Table C1: Growth of Personal Income Per Capita (2009$) County Rural/Urban Personal Income Per Capita Growth (2009$) Greene R $25,089 $37, % 2 Washington R $35,231 $46, % 3 Bradford R $28,129 $35, % 4 Indiana R $28,959 $36, % 5 Somerset R $25,945 $32, % 6 Butler R $35,731 $44, % 7 Westmoreland U $33,954 $41, % 8 McKean R $28,822 $35, % 9 Tioga R $25,213 $30, % 10 Beaver U $31,311 $38, % 11 Clinton R $27,089 $32, % 12 Philadelphia U $32,265 $39, % 13 Montour R $35,613 $43, % 14 Warren R $28,156 $34, % 15 Centre R $31,891 $38, % 16 Cameron R $28,437 $34, % 17 Lycoming R $30,133 $36, % 18 Wyoming R $28,068 $33, % 19 Crawford R $27,098 $31, % 20 Lawrence R $28,666 $33, % 21 Clarion R $28,399 $33, % 22 Huntingdon R $25,014 $29, % 23 Bedford R $27,284 $32, % 24 Sullivan R $27,907 $32, % 25 Jefferson R $27,842 $32, % 26 Lebanon U $33,277 $38, % 27 Susquehanna R $28,076 $32, % 28 Elk R $31,531 $36, % 29 Northumberland R $29,283 $34, % 30 Union R $27,498 $31, % 31 Cambria R $28,887 $33, % 32 Clearfield R $28,200 $32, % 33 Armstrong R $30,283 $35, % 34 Venango R $29,010 $33, % 35 Blair R $30,121 $34, % Analysis of Unearned Income in Rural and Urban Pennsylvania 71

72 36 Mercer R $29,137 $33, % 37 Mifflin R $26,488 $30, % Pennsylvania $37,444 $42, % 38 Perry R $31,225 $35, % 39 Schuylkill R $29,009 $32, % 40 Pike R $31,601 $35, % 41 Allegheny U $43,164 $48, % 42 Erie U $30,564 $34, % 43 Fayette R $29,405 $33, % 44 Lackawanna U $33,737 $37, % 45 Wayne R $29,898 $33, % 46 Fulton R $29,058 $32, % 47 Bucks U $48,015 $53, % 48 Montgomery U $57,809 $64, % 49 Delaware U $45,069 $49, % 50 Northampton U $36,052 $39, % 51 Luzerne U $33,019 $36, % 52 York U $34,380 $37, % 53 Franklin R $31,616 $34, % 54 Potter R $30,114 $32, % 55 Lancaster U $34,984 $37, % 56 Juniata R $28,588 $30, % 57 Cumberland U $40,441 $43, % 58 Dauphin U $38,905 $41, % 59 Chester U $56,149 $60, % 60 Carbon R $31,303 $33, % 61 Berks U $36,104 $38, % 62 Lehigh U $39,112 $40, % 63 Snyder R $29,856 $31, % 64 Monroe R $30,698 $31, % 65 Columbia R $30,216 $31, % 66 Forest R $23,320 $24, % 67 Adams R $32,724 $33, % Analysis of Unearned Income in Rural and Urban Pennsylvania 72

73 Table C2: Growth of Net Earnings Per Capita (2009$) County Rural/Urban Net Earnings Per Capita Growth (2009$) Greene R $14,735 $24, % 2 Washington R $23,375 $31, % 3 Indiana R $17,505 $22, % 4 Bradford R $17,739 $22, % 5 Philadelphia U $19,614 $24, % 6 Somerset R $15,021 $17, % 7 Westmoreland U $22,151 $26, % 8 Butler R $24,973 $29, % 9 Clinton R $17,214 $20, % 10 Forest R $9,663 $11, % 11 McKean R $17,724 $20, % 12 Montour R $23,878 $28, % 13 Beaver U $20,254 $23, % 14 Lycoming R $18,779 $21, % 15 Centre R $22,572 $26, % 16 Jefferson R $15,692 $17, % 17 Cambria R $16,095 $18, % 18 Union R $18,029 $20, % 19 Venango R $15,528 $17, % 20 Tioga R $15,239 $17, % 21 Allegheny U $28,766 $32, % 22 Lebanon U $22,310 $24, % 23 Sullivan R $13,829 $15, % 24 Crawford R $16,390 $18, % 25 Bedford R $16,894 $18, % 26 Warren R $17,362 $19, % 27 Clearfield R $16,683 $18, % 28 Montgomery U $40,612 $44, % 29 Schuylkill R $16,693 $18, % 30 Lawrence R $16,632 $18, % 31 Elk, R $19,326 $21, % 32 Armstrong R $18,820 $20, % 33 Northumberland R $17,703 $19, % Pennsylvania $24,862 $27, % 34 Wyoming R $18,041 $19, % 35 Blair R $18,260 $19, % 36 Delaware U $31,064 $33, % Analysis of Unearned Income in Rural and Urban Pennsylvania 73

74 37 Luzerne U $20,042 $21, % 38 Huntingdon R $15,662 $16, % 39 Erie U $19,390 $20, % 40 Chester U $40,944 $43, % 41 Lackawanna U $20,817 $21, % 42 Fayette R $16,838 $17, % 43 Franklin R $19,737 $20, % 44 Susquehanna R $17,763 $18, % 45 Wayne R $17,135 $17, % 46 Perry R $22,066 $23, % 47 Mercer R $17,568 $18, % 48 Cumberland U $27,345 $28, % 49 Northampton U $24,345 $25, % 50 Bucks U $35,706 $36, % 51 Clarion R $17,545 $18, % 52 Pike R $21,505 $22, % 53 Mifflin R $16,522 $16, % 54 York U $24,066 $24, % 55 Dauphin U $27,071 $27, % 56 Carbon R $19,296 $19, % 57 Lehigh U $26,242 $26, % 58 Berks U $24,244 $24, % 59 Juniata R $18,597 $18, % 60 Lancaster U $24,193 $23, % 61 Cameron R $15,809 $15, % 62 Snyder R $17,432 $16, % 63 Fulton R $19,212 $18, % 64 Adams R $21,538 $20, % 65 Monroe R $21,100 $20, % 66 Columbia R $19,331 $17, % 67 Potter R $20,054 $18, % Analysis of Unearned Income in Rural and Urban Pennsylvania 74

75 Table C3: Growth of Property Income Per Capita (2009$) County Rural/Urban Property Income Per Capita Growth (2009$) Clarion R $4,627 $6, % 2 Butler R $5,224 $7, % 3 Washington R $5,003 $6, % 4 Greene R $3,608 $4, % 5 Centre R $5,350 $7, % 6 Susquehanna R $4,778 $6, % 7 Montour R $5,269 $6, % 8 Cameron R $5,689 $7, % 9 Somerset R $4,368 $5, % 10 Tioga R $4,154 $5, % 11 Potter R $4,070 $5, % 12 Bucks U $7,391 $9, % 13 Wyoming R $4,630 $5, % 14 Warren R $4,686 $5, % 15 Fulton R $4,577 $5, % 16 Huntingdon R $3,696 $4, % 17 Beaver U $4,063 $5, % 18 Westmoreland U $5,194 $6, % 19 Mercer R $4,665 $5, % 20 Mifflin R $3,690 $4, % 21 Clinton R $3,804 $4, % 22 Lawrence R $4,773 $5, % 23 Blair R $4,797 $5, % 24 Perry R $4,340 $5, % 25 Lancaster U $6,044 $7, % 26 McKean R $4,458 $5, % 27 York U $5,465 $6, % 28 Northumberland R $5,012 $5, % 29 Lebanon U $5,485 $6, % 30 Bradford R $4,834 $5, % 31 Wayne R $6,209 $6, % 32 Northampton U $6,086 $6, % 33 Lycoming R $5,670 $6, % 34 Crawford R $4,431 $4, % 35 Lackawanna U $5,911 $6, % Analysis of Unearned Income in Rural and Urban Pennsylvania 75

76 36 Delaware U $7,800 $8, % Pennsylvania $6,397 $6, % 37 Union R $5,118 $5, % 38 Pike R $5,353 $5, % 39 Sullivan R $6,718 $7, % 40 Cambria R $4,842 $5, % 41 Clearfield R $4,708 $5, % 42 Elk R $5,789 $6, % 43 Armstrong R $4,669 $5, % 44 Juniata R $4,809 $5, % 45 Philadelphia U $4,546 $4, % 46 Fayette R $4,727 $5, % 47 Columbia R $5,180 $5, % 48 Snyder R $5,028 $5, % 49 Venango R $4,863 $5, % 50 Dauphin U $6,287 $6, % 51 Erie U $5,255 $5, % 52 Allegheny U $7,759 $8, % 53 Montgomery U $11,730 $12, % 54 Bedford R $4,553 $4, % 55 Indiana R $5,339 $5, % 56 Luzerne U $5,871 $5, % 57 Jefferson R $5,262 $5, % 58 Cumberland U $8,247 $8, % 59 Lehigh U $6,847 $6, % 60 Monroe R $4,822 $4, % 61 Franklin R $6,710 $6, % 62 Berks U $6,211 $6, % 63 Schuylkill R $5,389 $5, % 64 Chester U $10,907 $10, % 65 Carbon R $5,435 $5, % 66 Forest R $5,358 $5, % 67 Adams R $6,468 $5, % Analysis of Unearned Income in Rural and Urban Pennsylvania 76

77 Table C4: Growth of Transfer Receipts Per Capita (2009$) County Rural/Urban Transfer Receipts Per Capita Growth (2009$) Pike R $4,744 $7, % 2 Cameron R $6,938 $11, % 3 Fulton R $5,269 $8, % 4 Perry R $4,818 $7, % 5 Potter R $5,990 $8, % 6 Adams R $4,717 $7, % 7 Wyoming R $5,398 $7, % 8 Bucks U $4,918 $7, % 9 York U $4,849 $7, % 10 Bedford R $5,839 $8, % 11 Lancaster U $4,748 $6, % 12 Erie U $5,918 $8, % 13 Elk R $6,416 $9, % 14 Clarion R $6,228 $9, % 15 Warren R $6,108 $8, % 16 Bradford R $5,556 $8, % 17 Huntingdon R $5,655 $8, % 18 Mifflin R $6,277 $9, % 19 Cumberland U $4,849 $6, % 20 Monroe R $4,776 $6, % 21 Chester U $4,298 $6, % 22 Juniata R $5,181 $7, % 23 Dauphin U $5,545 $7, % 24 Susquehanna R $5,535 $7, % 25 Crawford R $6,277 $8, % 26 Lycoming R $5,684 $7, % 27 Lebanon U $5,483 $7, % 28 Tioga R $5,821 $8, % 29 Franklin, R $5,169 $7, % 30 Northampton U $5,621 $7, % 31 Berks U $5,648 $7, % 32 McKean R $6,639 $9, % 33 Columbia R $5,705 $7, % 34 Armstrong R $6,794 $9, % 35 Mercer R $6,904 $9, % 36 Lackawanna U $7,009 $9, % Analysis of Unearned Income in Rural and Urban Pennsylvania 77

78 37 Beaver U $6,995 $9, % 38 Butler R $5,534 $7, % 39 Westmoreland U $6,610 $8, % 40 Sullivan R $7,362 $9, % 41 Union R $4,351 $5, % 42 Northumberland R $6,569 $8, % 43 Jefferson R $6,888 $9, % 44 Centre R $3,970 $5, % 45 Lawrence R $7,262 $9, % 46 Clearfield R $6,808 $9, % Pennsylvania $6,184 $8, % 47 Indiana R $6,115 $8, % 48 Fayette R $7,839 $10, % 49 Wayne R $6,553 $8, % 50 Somerset R $6,555 $8, % 51 Schuylkill R $6,927 $9, % 52 Clinton R $6,071 $7, % 53 Blair R $7,065 $9, % 54 Lehigh U $6,023 $7, % 55 Delaware U $6,206 $8, % 56 Greene R $6,748 $8, % 57 Montgomery U $5,466 $7, % 58 Carbon R $6,572 $8, % 59 Luzerne U $7,105 $9, % 60 Allegheny U $6,639 $8, % 61 Washington R $6,852 $8, % 62 Montour R $6,465 $8, % 63 Venango R $8,620 $10, % 64 Philadelphia U $8,105 $10, % 65 Cambria R $7,950 $9, % 66 Snyder R $7,395 $8, % 67 Forest R $8,299 $7, % Analysis of Unearned Income in Rural and Urban Pennsylvania 78

79 Table C5: Growth of Retirement and Other Income Per Capita (2009$) County Rural/Urban Retirement and Other Income Per Capita Growth (2009$)2002 and Pike R $ 4,370 $ 7, % 2 Cameron R $ 5,949 $ 9, % 3 Fulton R $ 4,495 $ 6, % 4 Perry R $ 4,205 $ 6, % 5 Adams R $ 4,261 $ 6, % 6 Bucks U $ 4,412 $ 6, % 7 Potter R $ 5,224 $ 7, % 8 Huntingdon R $ 4,666 $ 6, % 9 Bedford R $ 4,998 $ 7, % 10 Elk R $ 5,629 $ 8, % 11 Wyoming R $ 4,642 $ 6, % 12 Erie U $ 4,936 $ 7, % 13 York U $ 4,253 $ 6, % 14 Mifflin R $ 5,354 $ 7, % 15 Warren R $ 5,417 $ 7, % 16 Lancaster U $ 4,231 $ 6, % 17 Chester U $ 3,873 $ 5, % 18 Cumberland U $ 4,422 $ 6, % 19 Bradford R $ 4,873 $ 6, % 20 Clarion R $ 5,524 $ 7, % 21 Crawford R $ 5,374 $ 7, % 22 Susquehanna R $ 4,892 $ 6, % 23 Dauphin U $ 4,835 $ 6, % 24 Juniata R $ 4,566 $ 6, % 25 Franklin R $ 4,611 $ 6, % 26 Monroe R $ 4,240 $ 5, % 27 Lycoming R $ 4,868 $ 6, % 28 Tioga R $ 5,109 $ 7, % 29 Berks U $ 4,879 $ 6, % 30 Lebanon U $ 4,914 $ 6, % 31 Centre R $ 3,537 $ 4, % 32 McKean R $ 5,791 $ 7, % 33 Northampton U $ 5,068 $ 6, % 34 Columbia R $ 4,989 $ 6, % 35 Butler R $ 4,884 $ 6, % 36 Union R $ 3,853 $ 5, % 37 Armstrong R $ 5,934 $ 8, % Analysis of Unearned Income in Rural and Urban Pennsylvania 79

80 38 Beaver U $ 6,173 $ 8, % 39 Westmoreland U $ 5,885 $ 7, % 40 Mercer R $ 6,144 $ 8, % 41 Northumberland R $ 5,785 $ 7, % 42 Clearfield R $ 5,855 $ 7, % 43 Jefferson R $ 6,047 $ 8, % 44 Sullivan R $ 6,780 $ 9, % 45 Lackawanna U $ 6,252 $ 8, % 46 Clinton R $ 5,122 $ 6, % 47 Lawrence R $ 6,411 $ 8, % 48 Indiana R $ 5,331 $ 7, % Pennsylvania $ 5,413 $ 7, % 49 Fayette R $ 6,651 $ 8, % 50 Blair R $ 6,174 $ 8, % 51 Wayne R $ 5,936 $ 7, % 52 Montgomery U $ 4,972 $ 6, % 53 Somerset R $ 5,759 $ 7, % 54 Schuylkill R $ 6,158 $ 7, % 55 Greene R $ 5,806 $ 7, % 56 Lehigh U $ 5,276 $ 6, % 57 Carbon R $ 5,834 $ 7, % 58 Delaware U $ 5,583 $ 7, % 59 Washington R $ 6,071 $ 7, % 60 Allegheny U $ 5,875 $ 7, % 61 Montour R $ 5,869 $ 7, % 62 Luzerne U $ 6,329 $ 7, % 63 Venango R $ 7,765 $ 9, % 64 Cambria R $ 7,098 $ 8, % 65 Snyder R $ 6,868 $ 8, % 66 Philadelphia U $ 6,666 $ 7, % 67 Forest R $ 7,555 $ 6, % Analysis of Unearned Income in Rural and Urban Pennsylvania 80

81 Table C6: Growth of Unemployment Insurance Compensation Per Capita (2009$) County Rural/Urban Unemployment Insurance Per Capita Growth (2009$) Pike R $122 $ % 2 Sullivan R $274 $ % 3 Tioga R $279 $ % 4 Snyder R $278 $ % 5 Clarion R $272 $ % 6 Bradford R $231 $ % 7 Wyoming R $370 $ % 8 Cameron R $589 $ % 9 Somerset R $387 $ % 10 Potter R $330 $ % 11 Monroe R $239 $ % 12 Juniata R $339 $ % 13 Indiana R $361 $ % 14 Susquehanna R $247 $ % 15 Venango R $304 $ % 16 Luzerne U $375 $ % 17 Lancaster U $228 $ % 18 Lycoming R $380 $ % 19 Lackawanna U $351 $ % 20 Jefferson R $381 $ % 21 Wayne R $248 $ % 22 Perry R $330 $ % 23 Cambria R $367 $ % 24 Lebanon U $281 $ % 25 Fayette R $385 $ % 26 Northampton U $274 $ % 27 Carbon R $417 $ % 28 Delaware U $285 $ % 29 Columbia R $394 $ % 30 Clearfield R $482 $ % 31 Armstrong R $412 $ % 32 Adams R $236 $ % 33 Schuylkill R $432 $ % 34 Greene R $296 $ % 35 Dauphin, U $304 $ % 36 Philadelphia U $318 $ % Analysis of Unearned Income in Rural and Urban Pennsylvania 81

82 37 Northumberland R $423 $ % 38 Mercer R $268 $ % 39 York U $305 $ % 40 Lawrence R $330 $ % 41 McKean R $321 $ % 42 Bucks U $310 $ % 43 Cumberland U $252 $ % Pennsylvania $327 $ % 44 Westmoreland U $374 $ % 45 Montgomery U $313 $ % 46 Chester U $254 $ % 47 Allegheny U $327 $ % 48 Bedford R $463 $ % 49 Lehigh U $360 $ % 50 Franklin R $263 $ % 51 Blair R $364 $ % 52 Butler R $358 $ % 53 Beaver U $411 $ % 54 Montour R $276 $ % 55 Washington R $381 $ % 56 Fulton R $401 $ % 57 Centre R $229 $ % 58 Huntingdon R $604 $ % 59 Union R $278 $ % 60 Clinton R $535 $ % 61 Berks U $408 $ % 62 Warren R $313 $ % 63 Elk, R $467 $ % 64 Mifflin R $480 $ % 65 Forest R $355 $ % 66 Crawford R $417 $ % 67 Erie U $440 $ % Analysis of Unearned Income in Rural and Urban Pennsylvania 82

83 Table C7:Growth of Income Maintenance Per Capita (2009$) County Rural/Urban Income Maintenance Per Growth (2009$) Cameron R $399 $ % 2 Berks U $361 $ % 3 Lebanon U $288 $ % 4 Luzerne U $401 $ % 5 Monroe R $298 $ % 6 Schuylkill R $337 $ % 7 Northampton U $278 $ % 8 Pike R $250 $ % 9 Elk R $320 $ % 10 Erie U $541 $ 1, % 11 Lackawanna U $408 $ % 12 York U $291 $ % 13 Lehigh U $387 $ % 14 Lancaster U $289 $ % 15 Snyder R $248 $ % 16 Delaware U $338 $ % 17 Cumberland U $176 $ % 18 Warren R $377 $ % 19 Juniata R $276 $ % 20 Philadelphia U $ 1,123 $ 2, % 21 Dauphin U $406 $ % 22 Northumberland R $361 $ % 23 Lawrence R $521 $ % 24 Mifflin R $441 $ % 25 Crawford R $486 $ % 26 Beaver U $411 $ % 27 Columbia R $323 $ % 28 Carbon R $321 $ % Pennsylvania $444 $ % 29 Mercer R $493 $ % 30 McKean R $528 $ % 31 Montgomery U $182 $ % 32 Fulton R $373 $ % 33 Westmoreland U $349 $ % 34 Allegheny U $438 $ % 35 Potter R $437 $ % Analysis of Unearned Income in Rural and Urban Pennsylvania 83

84 36 Perry R $282 $ % 37 Bedford R $377 $ % 38 Armstrong R $448 $ % 39 Adams R $221 $ % 40 Bucks U $197 $ % 41 Franklin R $295 $ % 42 Wayne R $369 $ % 43 Union R $219 $ % 44 Wyoming R $385 $ % 45 Clearfield R $472 $ % 46 Lycoming R $437 $ % 47 Susquehanna R $396 $ % 48 Clarion R $431 $ % 49 Montour R $321 $ % 50 Jefferson R $459 $ % 51 Huntingdon R $384 $ % 52 Cambria R $484 $ % 53 Sullivan R $307 $ % 54 Butler R $292 $ % 55 Clinton R $413 $ % 56 Venango R $551 $ % 57 Blair R $528 $ % 58 Greene R $646 $ % 59 Chester U $171 $ % 60 Somerset R $411 $ % 61 Washington R $399 $ % 62 Fayette R $804 $ 1, % 63 Bradford R $452 $ % 64 Indiana R $424 $ % 65 Tioga R $433 $ % 66 Centre R $203 $ % 67 Forest R $389 $ % Analysis of Unearned Income in Rural and Urban Pennsylvania 84

85 Appendix D Note: All tables in Appendix D are NOT adjusted for inflation. Table D1: Personal Income Per Capita by Decade Rank in County % of Pennsylvania in Montgomery U $6,664 $17,048 $32,038 $49,642 $68, % 2 Chester U $5,537 $14,982 $29,411 $48,217 $63, % 3 Bucks U $5,172 $13,375 $24,975 $41,232 $56, % 4 Delaware U $5,207 $14,125 $24,891 $38,702 $52, % 5 Allegheny U $5,047 $13,409 $23,667 $37,066 $51, % 6 Washington R $4,152 $11,086 $19,335 $30,254 $49, % 7 Butler R $4,204 $10,992 $19,767 $30,683 $47, % 8 Cumberland U $4,974 $12,067 $23,039 $34,728 $46, % 9 Montour R $3,971 $11,355 $21,557 $30,582 $45, % Pennsylvania $4,678 $11,880 $21,050 $32,154 $45, % 10 Westmoreland U $4,214 $11,381 $18,916 $29,157 $44,278 98% 11 Dauphin U $4,895 $11,968 $22,321 $33,409 $44,216 98% 12 Lehigh U $5,106 $13,112 $22,410 $33,587 $43,364 96% 13 Northampton U $4,613 $12,230 $20,570 $30,959 $42,233 94% 14 Philadelphia U $4,715 $10,914 $19,220 $27,707 $41,452 92% 15 Lebanon U $4,190 $10,505 $19,078 $28,576 $41,268 92% 16 Centre R $3,490 $9,208 $17,929 $27,386 $40,894 91% 17 Berks U $4,879 $12,749 $21,480 $31,004 $40,453 90% 18 Beaver U $4,105 $11,513 $17,255 $26,888 $40,428 90% 19 Lackawanna U $4,211 $10,566 $18,726 $28,971 $40,254 89% 20 York U $4,952 $12,453 $21,095 $29,523 $40,124 89% 21 Lancaster U $4,826 $11,696 $20,698 $30,042 $40,088 89% 22 Greene R $3,287 $9,312 $14,781 $21,545 $39,904 89% 23 Elk R $3,952 $11,122 $18,624 $27,077 $39,030 87% 24 Luzerne U $4,189 $10,430 $18,312 $28,354 $38,654 86% 25 Indiana R $3,600 $9,469 $16,754 $24,868 $38,315 85% 26 Lycoming R $4,123 $10,094 $17,077 $25,876 $38,239 85% 27 Pike R $4,807 $12,196 $17,777 $27,137 $37,976 84% 28 Bradford R $3,750 $9,189 $16,142 $24,155 $37,653 84% 29 Perry R $3,683 $9,652 $17,136 $26,814 $37,547 83% 30 McKean R $4,073 $10,262 $16,780 $24,750 $37,506 83% 31 Armstrong R $3,897 $10,530 $16,573 $26,005 $37,164 82% 32 Franklin R $4,374 $10,579 $18,227 $27,150 $36,743 82% 33 Erie U $4,430 $10,638 $18,431 $26,246 $36,671 81% 34 Blair R $3,829 $9,408 $16,706 $25,866 $36,570 81% Analysis of Unearned Income in Rural and Urban Pennsylvania 85

86 Table D1: Personal Income Per Capita by Decade Rank in County % of Pennsylvania in Cameron R $4,071 $8,981 $17,105 $24,420 $36,438 81% 36 Northumberland R $3,872 $9,427 $16,924 $25,146 $36,144 80% 37 Warren R $4,353 $10,792 $18,579 $24,178 $36,121 80% 38 Lawrence R $4,137 $9,736 $16,595 $24,616 $35,853 80% 39 Adams R $4,302 $10,787 $18,356 $28,101 $35,720 79% 40 Cambria R $3,807 $9,810 $16,501 $24,806 $35,620 79% 41 Wayne R $4,036 $10,179 $17,116 $25,674 $35,582 79% 42 Venango R $4,305 $11,644 $18,039 $24,912 $35,548 79% 43 Clarion R $3,813 $9,699 $15,861 $24,387 $35,509 79% 44 Wyoming R $3,980 $9,490 $17,282 $24,103 $35,418 79% 45 Mercer R $4,220 $10,516 $17,104 $25,021 $35,355 78% 46 Carbon R $3,931 $10,397 $16,961 $26,881 $35,251 78% 47 Fayette R $3,613 $9,509 $15,452 $25,251 $35,155 78% 48 Schuylkill R $4,051 $10,166 $17,316 $24,911 $34,882 77% 49 Clinton R $3,660 $9,075 $15,586 $23,262 $34,819 77% 50 Susquehanna R $3,689 $9,403 $16,969 $24,110 $34,764 77% 51 Clearfield R $3,625 $9,995 $16,053 $24,216 $34,718 77% 52 Sullivan R $3,256 $8,217 $16,183 $23,965 $34,704 77% 53 Potter R $3,255 $8,473 $15,805 $25,860 $34,585 77% 54 Jefferson R $3,915 $10,085 $16,858 $23,909 $34,566 77% 55 Fulton R $3,231 $8,603 $14,253 $24,953 $34,375 76% 56 Somerset R $3,641 $9,735 $16,887 $22,280 $34,281 76% 57 Bedford R $3,489 $8,540 $14,227 $23,430 $33,977 75% 58 Crawford R $3,920 $9,103 $16,168 $23,270 $33,932 75% 59 Union R $3,832 $9,503 $18,172 $23,613 $33,929 75% 60 Monroe R $4,977 $11,383 $18,290 $26,361 $33,781 75% 61 Columbia R $4,036 $9,484 $16,640 $25,947 $33,185 74% 62 Snyder R $4,025 $10,222 $18,624 $25,638 $33,075 73% 63 Juniata R $3,821 $9,291 $16,480 $24,549 $32,705 73% 64 Tioga R $3,474 $8,417 $14,902 $21,651 $32,623 72% 65 Mifflin R $3,859 $8,672 $14,958 $22,746 $32,078 71% 66 Huntingdon R $3,283 $8,170 $14,180 $21,480 $31,231 69% 67 Forest R $3,410 $9,151 $14,265 $20,026 $25,540 57% Analysis of Unearned Income in Rural and Urban Pennsylvania 86

87 Table D2: Net Earnings Per Capita by Decade Rank in County % of Pennsylvania in Montgomery U $4,953 $11,323 $20,979 $34,875 $47, % 2 Chester U $4,340 $10,865 $21,222 $35,160 $45, % 3 Bucks U $4,296 $9,852 $18,214 $30,662 $39, % 4 Delaware U $4,002 $9,370 $16,074 $26,676 $35, % 5 Allegheny U $3,807 $8,678 $15,280 $24,702 $34, % 6 Washington R $3,135 $7,038 $12,194 $20,073 $33, % 7 Butler R $3,278 $7,397 $13,375 $21,445 $31, % 8 Cumberland U $3,995 $8,251 $15,864 $23,482 $30, % 9 Montour R $2,867 $7,035 $13,792 $20,505 $29, % 10 Dauphin U $3,802 $8,080 $15,464 $23,247 $28, % Pennsylvania $3,549 $7,705 $13,622 $21,350 $28, % 11 Westmoreland U $3,244 $7,412 $11,926 $19,022 $28,031 97% 12 Lehigh U $4,059 $8,852 $14,823 $22,535 $27,737 96% 13 Centre R $2,745 $6,344 $12,443 $19,383 $27,715 96% 14 Northampton U $3,559 $8,117 $13,570 $20,906 $26,722 92% 15 Lebanon U $3,303 $7,074 $12,797 $19,158 $26,479 92% 16 York U $3,969 $8,853 $14,798 $20,666 $25,891 90% 17 Berks U $3,794 $8,627 $14,420 $20,819 $25,612 89% 18 Philadelphia U $3,464 $6,458 $11,566 $16,843 $25,536 88% 19 Greene R $2,264 $5,768 $8,635 $12,653 $25,474 88% 20 Lancaster U $3,859 $8,085 $14,208 $20,775 $25,223 87% 21 Beaver U $3,234 $7,714 $10,874 $17,393 $25,015 86% 22 Perry R $2,856 $6,579 $12,109 $18,949 $24,466 85% 23 Indiana R $2,709 $6,023 $10,418 $15,032 $23,937 83% 24 Pike R $3,225 $7,346 $11,653 $18,467 $23,493 81% 25 Bradford R $2,830 $5,948 $10,551 $15,233 $23,371 81% 26 Lackawanna U $3,021 $6,128 $11,009 $17,876 $23,265 80% 27 Lycoming R $3,122 $6,523 $10,671 $16,126 $23,139 80% 28 Luzerne U $2,968 $5,987 $10,783 $17,211 $22,680 78% 29 Elk, R $3,087 $7,359 $11,859 $16,596 $22,572 78% 30 McKean R $2,897 $6,531 $9,893 $15,220 $22,207 77% 31 Franklin R $3,434 $6,914 $11,801 $16,949 $22,046 76% 32 Armstrong R $2,942 $6,629 $9,788 $16,161 $21,960 76% 33 Adams R $3,384 $7,422 $12,668 $18,495 $21,946 76% 34 Union R $2,862 $5,797 $11,166 $15,482 $21,763 75% Analysis of Unearned Income in Rural and Urban Pennsylvania 87

88 Table D2: Net Earnings Per Capita by Decade Rank in 2012 County % of Pennsylvania in Erie U $3,468 $7,159 $12,149 $16,651 $21,762 75% 36 Clinton R $2,700 $5,537 $9,488 $14,782 $21,633 75% 37 Monroe R $3,678 $7,303 $12,153 $18,119 $21,405 74% 38 Blair R $2,838 $5,720 $10,130 $15,680 $20,808 72% 39 Wyoming R $3,044 $6,561 $11,470 $15,492 $20,747 72% 40 Carbon R $2,813 $6,105 $10,137 $16,570 $20,608 71% 41 Northumberland R $2,768 $5,562 $10,085 $15,202 $20,594 71% 42 Warren R $3,259 $6,946 $11,375 $14,909 $20,503 71% 43 Bedford R $2,584 $5,345 $8,683 $14,507 $19,951 69% 44 Susquehanna R $2,742 $6,023 $11,094 $15,254 $19,793 68% 45 Fulton R $2,477 $5,464 $8,965 $16,498 $19,752 68% 46 Schuylkill R $2,893 $5,911 $10,214 $14,335 $19,609 68% 47 Clearfield R $2,659 $6,317 $9,470 $14,326 $19,608 68% 48 Cambria R $2,795 $5,663 $9,409 $13,821 $19,529 68% 49 Lawrence R $3,081 $5,912 $9,632 $14,282 $19,527 68% 50 Potter R $2,397 $5,236 $9,743 $17,221 $19,519 67% 51 Mercer R $3,260 $6,616 $10,423 $15,086 $19,468 67% 52 Juniata R $2,952 $5,934 $10,523 $15,970 $19,421 67% 53 Crawford R $2,925 $5,676 $10,068 $14,075 $19,369 67% 54 Clarion R $2,881 $6,200 $9,654 $15,066 $19,168 66% 55 Jefferson R $2,893 $6,314 $10,022 $13,475 $19,082 66% 56 Somerset R $2,627 $5,867 $10,378 $12,899 $19,064 66% 57 Columbia R $3,041 $5,908 $10,342 $16,600 $19,049 66% 58 Wayne R $2,869 $5,999 $9,725 $14,714 $19,008 66% 59 Fayette R $2,575 $5,523 $8,536 $14,459 $18,816 65% 60 Venango R $3,068 $6,990 $9,783 $13,334 $18,704 65% 61 Tioga R $2,585 $5,213 $9,250 $13,086 $18,337 63% 62 Snyder R $2,977 $6,085 $10,391 $14,969 $18,001 62% 63 Mifflin R $3,007 $5,567 $9,389 $14,188 $17,875 62% 64 Huntingdon R $2,408 $5,098 $8,857 $13,449 $17,710 61% 65 Cameron R $3,121 $5,085 $9,929 $13,576 $16,456 57% 66 Sullivan R $2,270 $4,482 $8,694 $11,875 $16,375 57% 67 Forest R $2,458 $5,326 $6,942 $8,298 $12,124 42% Analysis of Unearned Income in Rural and Urban Pennsylvania 88

89 Table D3: Property Income Per Capita by Decade Rank in 2012 County % of Pennsylvania in Montgomery U $1,285 $4,119 $8,007 $10,073 $12, % 2 Chester U $820 $2,733 $5,781 $9,366 $11, % 3 Bucks U $525 $2,219 $4,206 $6,347 $9, % 4 Delaware U $734 $3,019 $5,455 $6,698 $9, % 5 Cumberland U $605 $2,467 $4,619 $7,082 $8, % 6 Allegheny U $674 $2,668 $4,567 $6,663 $8, % 7 Cameron R $466 $1,711 $3,349 $4,885 $7, % 8 Sullivan R $412 $1,796 $3,691 $5,769 $7, % 9 Butler R $466 $1,895 $3,351 $4,486 $7, % 10 Lancaster U $578 $2,249 $4,053 $5,190 $7, % 11 Centre R $426 $1,688 $3,338 $4,594 $7, % 12 Wayne R $622 $2,224 $3,876 $5,332 $7, % Pennsylvania $581 $2,250 $3,937 $5,493 $7, % 13 Montour R $386 $1,708 $3,463 $4,525 $7,351 99% 14 Lehigh U $618 $2,584 $4,379 $5,880 $7,306 99% 15 Northampton U $574 $2,263 $3,730 $5,226 $7,231 98% 16 Washington R $431 $1,892 $3,172 $4,296 $7,126 96% 17 Franklin R $509 $2,106 $3,730 $5,762 $7,064 95% 18 Dauphin U $555 $2,214 $3,764 $5,399 $6,946 94% 19 Lackawanna U $484 $2,020 $3,528 $5,076 $6,883 93% 20 Clarion R $418 $1,784 $2,838 $3,973 $6,785 91% 21 Westmoreland U $450 $2,017 $3,326 $4,460 $6,760 91% 22 York U $577 $2,175 $3,767 $4,693 $6,698 90% 23 Susquehanna R $407 $1,782 $2,923 $4,103 $6,666 90% 24 Lycoming R $484 $1,734 $3,178 $4,869 $6,644 90% 25 Lebanon U $460 $1,908 $3,435 $4,710 $6,638 90% 26 Elk R $398 $1,992 $3,411 $4,971 $6,607 89% 27 Berks U $585 $2,339 $3,901 $5,334 $6,527 88% 28 Adams R $511 $2,042 $3,229 $5,554 $6,331 85% 29 Luzerne U $458 $1,940 $3,383 $5,042 $6,292 85% 30 Warren R $572 $1,965 $3,782 $4,024 $6,249 84% 31 Pike R $1,014 $3,243 $3,811 $4,597 $6,200 84% 32 Wyoming R $455 $1,408 $2,867 $3,976 $6,188 83% 33 Northumberland R $428 $1,685 $3,083 $4,304 $6,138 83% 34 Fulton R $365 $1,549 $2,769 $3,930 $6,088 82% Analysis of Unearned Income in Rural and Urban Pennsylvania 89

90 Table D3: Property Income Per Capita by Decade Rank in 2012 County % of Pennsylvania in Somerset R $394 $1,793 $2,763 $3,751 $6,080 82% 36 Blair R $361 $1,555 $2,794 $4,119 $5,980 81% 37 Lawrence R $484 $1,749 $2,812 $4,099 $5,952 80% 38 Union R $462 $1,891 $3,714 $4,395 $5,930 80% 39 Mercer R $457 $1,955 $3,056 $4,006 $5,915 80% 40 Erie U $491 $1,766 $3,101 $4,513 $5,793 78% 41 Bradford R $419 $1,554 $2,748 $4,151 $5,791 78% 42 Columbia R $461 $1,689 $3,054 $4,448 $5,786 78% 43 Indiana R $347 $1,715 $2,900 $4,585 $5,779 78% 44 Tioga R $416 $1,560 $2,622 $3,567 $5,676 77% 45 Schuylkill R $411 $1,816 $3,038 $4,628 $5,641 76% 46 Jefferson R $386 $1,828 $3,026 $4,519 $5,635 76% 47 Carbon R $439 $1,994 $2,998 $4,667 $5,608 76% 48 Snyder R $392 $1,656 $3,445 $4,318 $5,579 75% 49 Cambria R $344 $1,675 $2,722 $4,158 $5,554 75% 50 Potter R $333 $1,455 $2,652 $3,495 $5,545 75% 51 McKean R $573 $1,816 $3,186 $3,828 $5,533 75% 52 Juniata R $421 $1,822 $2,996 $4,130 $5,471 74% 53 Forest R $346 $1,540 $2,832 $4,601 $5,461 74% 54 Perry R $383 $1,653 $2,596 $3,727 $5,394 73% 55 Venango R $537 $2,011 $3,161 $4,176 $5,390 73% 56 Clearfield R $345 $1,723 $2,879 $4,043 $5,386 73% 57 Fayette R $311 $1,528 $2,470 $4,059 $5,368 72% 58 Beaver U $399 $1,755 $2,612 $3,489 $5,339 72% 59 Armstrong R $383 $1,846 $2,948 $4,009 $5,313 72% 60 Philadelphia U $548 $1,989 $3,006 $3,904 $5,167 70% 61 Crawford R $468 $1,587 $2,691 $3,805 $5,166 70% 62 Monroe R $796 $2,453 $3,404 $4,141 $5,135 69% 63 Greene R $335 $1,448 $2,255 $3,098 $5,133 69% 64 Bedford R $361 $1,506 $2,477 $3,910 $4,964 67% 65 Huntingdon R $348 $1,335 $2,352 $3,174 $4,886 66% 66 Clinton R $412 $1,563 $2,619 $3,267 $4,779 64% 67 Mifflin R $360 $1,346 $2,311 $3,169 $4,651 63% Analysis of Unearned Income in Rural and Urban Pennsylvania 90

91 Table D4: Transfer Income Per Capita by Decade Rank in 2012 County % of Pennsylvania in Cameron R $484 $2,184 $3,827 $5,958 $12, % 2 Venango R $700 $2,644 $5,095 $7,402 $11, % 3 Fayette R $727 $2,458 $4,446 $6,732 $10, % 4 Philadelphia U $703 $2,467 $4,649 $6,960 $10, % 5 Sullivan R $574 $1,939 $3,798 $6,322 $10, % 6 Cambria R $668 $2,471 $4,369 $6,827 $10, % 7 Lawrence R $572 $2,075 $4,151 $6,236 $10, % 8 Lackawanna U $706 $2,419 $4,189 $6,019 $10, % 9 Beaver U $472 $2,045 $3,769 $6,007 $10, % 10 Mercer R $503 $1,946 $3,625 $5,929 $9, % 11 Armstrong R $572 $2,055 $3,837 $5,834 $9, % 12 Elk R $468 $1,771 $3,353 $5,510 $9, % 13 Jefferson R $635 $1,943 $3,810 $5,915 $9, % 14 Blair R $629 $2,133 $3,782 $6,067 $9, % 15 McKean R $603 $1,914 $3,701 $5,701 $9, % 16 Clearfield R $622 $1,956 $3,704 $5,846 $9, % 17 Luzerne U $764 $2,503 $4,145 $6,101 $9, % 18 Schuylkill R $747 $2,438 $4,064 $5,948 $9, % 19 Clarion R $514 $1,715 $3,369 $5,348 $9, % 20 Mifflin R $492 $1,760 $3,258 $5,390 $9, % 21 Potter R $526 $1,782 $3,409 $5,144 $9, % 22 Snyder R $656 $2,482 $4,787 $6,350 $9, % 23 Westmoreland U $519 $1,952 $3,665 $5,676 $9, % 24 Northumberland R $676 $2,180 $3,757 $5,641 $9, % 25 Crawford R $527 $1,839 $3,409 $5,390 $9, % 26 Warren R $522 $1,881 $3,423 $5,245 $9, % 27 Greene R $687 $2,096 $3,891 $5,795 $9, % 28 Washington R $586 $2,155 $3,969 $5,884 $9, % 29 Wayne R $545 $1,956 $3,514 $5,627 $9, % 30 Somerset R $620 $2,076 $3,747 $5,629 $9, % 31 Erie U $471 $1,714 $3,181 $5,082 $9, % 32 Bedford R $544 $1,688 $3,067 $5,014 $9, % 33 Allegheny U $566 $2,063 $3,819 $5,701 $9, % 34 Carbon R $679 $2,297 $3,826 $5,644 $9, % Pennsylvania $548 $1,925 $3,491 $5,310 $8, % Analysis of Unearned Income in Rural and Urban Pennsylvania 91

92 Table D4: Transfer Income Per Capita by Decade Rank in 2012 County % of Pennsylvania in Huntingdon R $527 $1,737 $2,971 $4,856 $8,635 99% 36 Tioga R $473 $1,643 $3,030 $4,999 $8,610 98% 37 Indiana R $544 $1,731 $3,436 $5,251 $8,599 98% 38 Montour R $718 $2,611 $4,302 $5,552 $8,592 98% 39 Delaware U $471 $1,735 $3,362 $5,329 $8,558 98% 40 Fulton R $389 $1,590 $2,520 $4,525 $8,536 98% 41 Bradford R $501 $1,687 $2,842 $4,771 $8,491 97% 42 Wyoming R $480 $1,521 $2,945 $4,635 $8,484 97% 43 Lycoming R $517 $1,837 $3,228 $4,881 $8,455 97% 44 Clinton R $548 $1,975 $3,479 $5,213 $8,406 96% 45 Columbia R $535 $1,888 $3,244 $4,899 $8,351 95% 46 Dauphin U $539 $1,675 $3,093 $4,762 $8,347 95% 47 Lehigh U $429 $1,676 $3,208 $5,172 $8,322 95% 48 Berks U $500 $1,783 $3,159 $4,850 $8,315 95% 49 Susquehanna R $540 $1,597 $2,952 $4,753 $8,305 95% 50 Pike R $568 $1,606 $2,313 $4,074 $8,283 95% 51 Northampton U $480 $1,850 $3,270 $4,827 $8,280 95% 52 Lebanon U $428 $1,522 $2,846 $4,708 $8,151 93% 53 Forest R $606 $2,285 $4,490 $7,127 $7,955 91% 54 Butler R $459 $1,700 $3,041 $4,752 $7,943 91% 55 Juniata R $447 $1,535 $2,961 $4,449 $7,812 89% 56 Bucks U $350 $1,304 $2,555 $4,223 $7,710 88% 57 Perry R $443 $1,420 $2,430 $4,137 $7,686 88% 58 Franklin, R $430 $1,559 $2,696 $4,439 $7,633 87% 59 York U $406 $1,425 $2,531 $4,164 $7,535 86% 60 Montgomery U $427 $1,606 $3,051 $4,694 $7,521 86% 61 Adams R $406 $1,323 $2,459 $4,051 $7,443 85% 62 Cumberland U $374 $1,349 $2,556 $4,164 $7,374 84% 63 Lancaster U $389 $1,361 $2,437 $4,077 $7,353 84% 64 Monroe R $503 $1,627 $2,734 $4,101 $7,242 83% 65 Chester U $377 $1,384 $2,408 $3,691 $6,486 74% 66 Union R $508 $1,816 $3,292 $3,736 $6,236 71% 67 Centre R $320 $1,177 $2,148 $3,409 $5,672 65% Analysis of Unearned Income in Rural and Urban Pennsylvania 92

93 Table D5: Income Maintenance Per Capita by Decade Rank in County % of Pennsylvania in Philadelphia U $172 $474 $786 $964 $2, % 2 Fayette R $116 $295 $600 $690 $1, % 3 Erie U $62 $183 $345 $465 $1, % 4 Greene R $115 $256 $523 $555 $1, % 5 Lawrence R $65 $188 $364 $447 $ % 6 McKean R $91 $183 $360 $453 $ % 7 Cameron R $38 $187 $269 $343 $ % 8 Crawford R $56 $173 $345 $417 $ % 9 Mercer R $54 $168 $325 $423 $ % 10 Venango R $59 $166 $380 $473 $ % 11 Blair R $48 $191 $354 $453 $ % 12 Luzerne U $53 $152 $261 $344 $ % 13 Mifflin R $76 $186 $292 $379 $ % Pennsylvania $71 $185 $309 $381 $ % 14 Lackawanna U $53 $154 $265 $350 $812 99% 15 Cambria R $47 $157 $302 $416 $803 98% 16 Clearfield R $49 $148 $327 $405 $802 98% 17 Armstrong R $59 $172 $320 $385 $784 96% 18 Berks U $35 $105 $210 $310 $784 96% 19 Allegheny U $81 $192 $321 $376 $775 95% 20 Dauphin U $99 $171 $297 $349 $775 95% 21 Potter R $70 $231 $369 $375 $772 94% 22 Beaver U $44 $142 $310 $353 $767 94% 23 Jefferson R $51 $132 $294 $394 $764 93% 24 Lehigh U $24 $105 $221 $332 $763 93% 25 Lycoming R $50 $175 $290 $375 $741 90% 26 Clarion R $52 $152 $313 $370 $728 89% 27 Warren R $41 $120 $235 $324 $724 88% 28 Bradford R $82 $211 $335 $388 $713 87% 29 Schuylkill R $40 $120 $208 $289 $693 85% 30 Northumberland R $40 $144 $235 $310 $688 84% 31 Clinton R $58 $195 $313 $355 $675 82% 32 Fulton R $54 $171 $279 $320 $669 82% 33 Susquehanna R $44 $131 $261 $340 $669 82% 34 Bedford R $46 $165 $272 $324 $663 81% Analysis of Unearned Income in Rural and Urban Pennsylvania 93

94 Table D5: Income Maintenance Per Capita by Decade Rank in County % of Pennsylvania in Wyoming R $37 $178 $240 $331 $658 80% 36 Delaware U $50 $133 $207 $290 $658 80% 37 Somerset R $56 $149 $275 $353 $657 80% 38 Elk R $27 $107 $192 $275 $648 79% 39 Huntingdon R $63 $179 $262 $330 $639 78% 40 Washington R $65 $169 $318 $343 $637 78% 41 Wayne R $28 $118 $228 $317 $635 78% 42 Tioga R $58 $178 $299 $372 $630 77% 43 Westmoreland U $45 $140 $257 $300 $624 76% 44 Monroe R $29 $100 $169 $256 $621 76% 45 Indiana R $57 $143 $315 $364 $617 75% 46 Lebanon U $30 $76 $159 $247 $612 75% 47 Columbia R $30 $131 $194 $277 $601 73% 48 Carbon R $30 $130 $200 $276 $595 73% 49 York U $37 $96 $168 $250 $580 71% 50 Northampton U $32 $109 $183 $239 $573 70% 51 Lancaster U $37 $101 $178 $248 $569 69% 52 Montour R $45 $134 $173 $276 $541 66% 53 Juniata R $46 $122 $177 $237 $529 65% 54 Pike R $16 $63 $155 $215 $513 63% 55 Franklin R $30 $96 $165 $253 $509 62% 56 Sullivan R $47 $132 $202 $264 $505 62% 57 Perry R $46 $126 $174 $242 $496 61% 58 Snyder R $39 $105 $161 $213 $486 59% 59 Butler R $38 $125 $213 $251 $479 58% 60 Forest R $41 $166 $281 $334 $431 53% 61 Adams R $29 $87 $137 $190 $386 47% 62 Union R $39 $84 $158 $188 $376 46% 63 Bucks U $45 $83 $121 $169 $343 42% 64 Cumberland U $17 $53 $94 $151 $342 42% 65 Montgomery U $26 $71 $110 $156 $327 40% 66 Centre R $24 $84 $135 $174 $287 35% 67 Chester U $39 $94 $118 $147 $274 33% Analysis of Unearned Income in Rural and Urban Pennsylvania 94

95 Table D6: Unemployment Insurance Compensation Per Capita by Decade Rank in 2012 County % of Pennsylvania in Cameron R $37 $416 $360 $506 $ % 2 Huntingdon R $61 $248 $399 $519 $ % 3 Clearfield R $74 $263 $334 $414 $ % 4 Wyoming R $51 $133 $362 $318 $ % 5 Somerset R $50 $273 $295 $332 $ % 6 Schuylkill R $82 $216 $337 $371 $ % 7 Carbon R $70 $223 $359 $358 $ % 8 Clinton R $79 $284 $310 $459 $ % 9 Bedford R $100 $232 $330 $398 $ % 10 Armstrong R $39 $278 $309 $354 $ % 11 Jefferson R $73 $222 $301 $327 $ % 12 Lycoming R $47 $209 $295 $326 $ % 13 Northumberland, R $94 $222 $320 $363 $ % 14 Luzerne U $88 $192 $340 $322 $ % 15 Indiana R $43 $168 $299 $310 $ % 16 Columbia R $61 $240 $345 $338 $ % 17 Fayette R $54 $354 $263 $331 $ % 18 Cambria R $53 $285 $266 $315 $ % 19 Potter R $48 $136 $251 $283 $ % 20 Juniata R $50 $210 $430 $291 $ % 21 Lackawanna U $65 $169 $275 $301 $ % 22 Tioga R $31 $137 $180 $240 $ % 23 Snyder R $41 $166 $257 $239 $ % 24 Sullivan R $35 $146 $328 $235 $ % 25 Clarion R $54 $184 $239 $234 $ % 26 Perry R $25 $133 $229 $283 $ % 27 Westmoreland U $52 $292 $262 $321 $ % 28 Beaver U $36 $423 $246 $353 $ % 29 Mifflin R $44 $248 $304 $412 $ % 30 Elk, R $37 $224 $240 $401 $ % 31 Fulton R $34 $359 $226 $344 $ % 32 Venango R $36 $268 $224 $261 $ % 33 Lehigh U $29 $191 $261 $309 $ % 34 Blair R $46 $205 $257 $313 $ % 35 Washington R $48 $258 $227 $327 $ % Analysis of Unearned Income in Rural and Urban Pennsylvania 95

96 Table D6: Unemployment Insurance Compensation Per Capita by Decade Rank in 2012 County % of Pennsylvania in Lawrence R $62 $260 $268 $283 $ % Pennsylvania $44 $187 $232 $281 $ % 37 Philadelphia U $49 $139 $233 $273 $ % 38 McKean R $49 $145 $241 $276 $ % 39 Butler R $57 $286 $223 $307 $422 99% 40 Berks U $38 $177 $222 $350 $422 99% 41 Allegheny U $43 $211 $206 $281 $411 97% 42 Bradford R $47 $151 $139 $198 $409 96% 43 Dauphin, U $29 $123 $209 $261 $408 96% 44 Bucks U $28 $151 $234 $266 $405 95% 45 York U $25 $188 $202 $262 $404 95% 46 Erie, U $35 $200 $226 $378 $402 95% 47 Montgomery U $24 $122 $223 $269 $402 95% 48 Lebanon U $27 $183 $217 $241 $401 94% 49 Greene R $35 $163 $234 $254 $399 94% 50 Delaware U $35 $116 $219 $245 $397 93% 51 Northampton U $42 $199 $219 $235 $386 91% 52 Crawford R $57 $212 $237 $358 $385 91% 53 Susquehanna R $107 $83 $217 $212 $377 89% 54 Monroe R $36 $149 $259 $205 $369 87% 55 Wayne R $50 $127 $294 $213 $366 86% 56 Mercer R $49 $259 $223 $230 $356 84% 57 Lancaster U $21 $122 $146 $196 $340 80% 58 Forest R $36 $229 $330 $305 $335 79% 59 Cumberland U $21 $120 $153 $216 $327 77% 60 Adams R $45 $161 $182 $203 $324 76% 61 Montour R $41 $147 $183 $237 $320 75% 62 Warren R $44 $147 $228 $269 $319 75% 63 Chester U $18 $124 $174 $218 $319 75% 64 Franklin, R $34 $216 $140 $226 $317 75% 65 Union R $42 $200 $239 $239 $307 72% 66 Centre R $29 $121 $146 $197 $259 61% 67 Pike R $41 $59 $100 $105 $230 54% Analysis of Unearned Income in Rural and Urban Pennsylvania 96

97 Table D7: Retirement and Other Income Per Capita by Decade Rank in County % of Pennsylvania in Cameron R $409 $1,583 $3,201 $5,109 $10, % 2 Venango R $605 $2,210 $4,491 $6,668 $10, % 3 Sullivan R $492 $1,659 $3,263 $5,822 $9, % 4 Cambria R $568 $2,027 $3,799 $6,095 $9, % 5 Fayette R $557 $1,809 $3,584 $5,711 $9, % 6 Lawrence R $444 $1,628 $3,519 $5,505 $8, % 7 Beaver U $391 $1,480 $3,214 $5,301 $8, % 8 Lackawanna U $588 $2,095 $3,649 $5,369 $8, % 9 Elk R $404 $1,443 $2,924 $4,834 $8, % 10 Mercer R $401 $1,517 $3,076 $5,276 $8, % 11 Armstrong R $474 $1,607 $3,210 $5,096 $8, % 12 Jefferson R $511 $1,590 $3,216 $5,193 $8, % 13 Snyder R $576 $2,209 $4,365 $5,898 $8, % 14 Blair R $535 $1,737 $3,171 $5,302 $8, % 15 McKean R $463 $1,584 $3,096 $4,973 $8, % 16 Westmoreland U $423 $1,521 $3,147 $5,054 $8, % 17 Schuylkill R $625 $2,101 $3,517 $5,288 $8, % 18 Clarion R $408 $1,377 $2,815 $4,744 $8, % 19 Warren R $436 $1,614 $2,961 $4,652 $8, % 20 Luzerne U $622 $2,158 $3,543 $5,435 $8, % 21 Clearfield R $498 $1,544 $3,042 $5,028 $8, % 22 Mifflin R $372 $1,327 $2,664 $4,598 $8, % 23 Potter R $409 $1,417 $2,792 $4,486 $8, % 24 Philadelphia U $482 $1,854 $3,630 $5,724 $8, % 25 Northumberland R $542 $1,814 $3,201 $4,968 $8, % 26 Wayne R $467 $1,710 $2,992 $5,097 $8, % 27 Washington R $473 $1,729 $3,425 $5,213 $8, % 28 Crawford R $414 $1,454 $2,826 $4,615 $8, % 29 Somerset R $514 $1,653 $3,176 $4,945 $7, % 30 Allegheny U $442 $1,661 $3,293 $5,045 $7, % 31 Carbon R $579 $1,945 $3,269 $5,010 $7, % 32 Greene R $537 $1,673 $3,129 $4,986 $7, % 33 Bedford R $397 $1,294 $2,468 $4,292 $7, % 34 Montour R $632 $2,328 $3,944 $5,040 $7, % 35 Erie U $374 $1,329 $2,608 $4,239 $7, % Analysis of Unearned Income in Rural and Urban Pennsylvania 97

98 Table D7: Retirement and Other Income Per Capita by Decade Rank in County % of Pennsylvania in Pike R $510 $1,485 $2,061 $3,753 $7, % Pennsylvania $434 $1,553 $2,949 $4,648 $7, % 37 Delaware U $386 $1,485 $2,935 $4,794 $7, % 38 Tioga R $384 $1,328 $2,550 $4,387 $7,462 99% 39 Indiana R $444 $1,418 $2,818 $4,578 $7,429 99% 40 Fulton R $302 $1,062 $2,018 $3,860 $7,408 99% 41 Bradford R $373 $1,326 $2,371 $4,185 $7,369 98% 42 Northampton U $406 $1,541 $2,867 $4,352 $7,322 98% 43 Huntingdon R $403 $1,303 $2,302 $4,007 $7,321 98% 44 Susquehanna R $389 $1,385 $2,477 $4,201 $7,259 97% 45 Columbia R $444 $1,515 $2,701 $4,284 $7,203 96% 46 Forest R $529 $1,887 $3,875 $6,488 $7,189 96% 47 Wyoming R $392 $1,211 $2,344 $3,986 $7,183 96% 48 Dauphin U $410 $1,382 $2,588 $4,152 $7,164 95% 49 Clinton R $411 $1,495 $2,854 $4,398 $7,155 95% 50 Lycoming R $420 $1,451 $2,642 $4,180 $7,151 95% 51 Lebanon U $371 $1,263 $2,471 $4,220 $7,138 95% 52 Lehigh U $376 $1,380 $2,726 $4,531 $7,113 95% 53 Berks U $428 $1,501 $2,727 $4,190 $7,109 95% 54 Butler R $365 $1,289 $2,605 $4,194 $7,041 94% 55 Bucks U $278 $1,071 $2,202 $3,789 $6,962 93% 56 Franklin R $366 $1,248 $2,393 $3,960 $6,808 91% 57 Montgomery U $377 $1,413 $2,720 $4,270 $6,792 91% 58 Juniata R $352 $1,204 $2,355 $3,921 $6,760 90% 59 Adams R $332 $1,075 $2,138 $3,659 $6,733 90% 60 Cumberland U $336 $1,174 $2,305 $3,797 $6,705 89% 61 Perry R $372 $1,163 $2,030 $3,611 $6,704 89% 62 York U $344 $1,142 $2,163 $3,652 $6,552 87% 63 Lancaster U $331 $1,138 $2,115 $3,633 $6,445 86% 64 Monroe R $438 $1,379 $2,307 $3,641 $6,252 83% 65 Chester U $320 $1,165 $2,116 $3,326 $5,893 79% 66 Union R $427 $1,516 $2,874 $3,309 $5,553 74% 67 Centre R $267 $965 $1,858 $3,037 $5,127 68% Analysis of Unearned Income in Rural and Urban Pennsylvania 98

99 The Center for Rural Pennsylvania 625 Forster St., Room 902 Harrisburg, PA (717) Analysis of Unearned Income in Rural and Urban Pennsylvania 99