Using Personal Income Statistics

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Using Personal Income Statistics
David G. Lenze Understanding Regional Economic
Data for Policy and Planning Conference 8
September 2006
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Overview

• Personal income its chief alternatives
• Improvements in wage measurement
• Why QCEW BEA job counts differ
• Revision schedule
• Supplements to wages salaries
• Pension income (work in progress)

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What is Income?
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Per Capita Income Change 2000-01 (Dollars)
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Per Capita Income, 2004, dollars
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Some differences between BEA, Census, IRS

• Transfers, in cash, in kind
• Capital gains
• Pension benefits
• FICA taxes
• Misreporting

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Personal Income income from all sources

• Income from labor services
• Compensation
• Income from household enterprises
• Proprietors income
• Net rent
• Income from ownership of capital
• Dividends
• Interest
• Taxes and transfers

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Derivation of Disposable Personal Income

• Wage and salary disbursements
• Supplements to wages and salaries
• Compensation
• Proprietors income
• Earnings (pow)
• Contributions for govt. social insurance
• Adjustment for residence
• Earnings (por)
• Dividends, interest, and rent
• Personal current transfer receipts
• Personal income
• Personal current taxes
• Disposable personal income

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Real WagesTexas US
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Improved Preliminary Wage Estimates
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(No Transcript)
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Revisions

• Regular revision schedule to incorporate data
  that are
• More complete
• More detailed
• More appropriate
• Benchmark revisions

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Revision Schedule
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Supplements to Wages Salaries

• 13 of personal income
• Employer contributions to
• Pension private insurance funds (9)
• Govt. social insurance funds (4)

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Supplements as a of Compensation,Texas 2004
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Supplements as a of CompensationTexas 2003
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Real Compensation Wages per Worker, Texas,
20001.00
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US Pension Accounting, 2000

• Personal income 8,429.7
• - Net reclassifications 3.0
• - Pension contributions 697.7
• - Pension Fund Property Income 367.7
• Pension benefits 652.2
• Adjusted personal income 8,013.6

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Contributions to Texan Earnings Growth, 20061
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For Further Information

• Working papers available at
• http//www.bea.gov/bea/regional/articles.cfm?sect
  ionpapers
• Alternative Measures of Household Income BEA
  Personal Income, CPS Money Income and Beyond by
  John W. Ruser, Adrienne T. Pilot, and Charles
  Nelson
• Reliability of the State Personal Income
  Estimates by Robert L. Brown, Bruce T. Grimm, and
  Marian B. Sacks
• Using Efficiency Tests to Reduce Revisions in
  Panel Data The Case of Wage and Salary Estimates
  for U.S. States by Jeremy J. Nalewaik
• State Pension Benefit Estimates
• Methodologies available at
• http//www.bea.gov/bea/regional/articles.cfm?secti
  onmethods

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Questions/Comments

• David.Lenze_at_bea.gov
• [phone]