Comparing Per Capita Incomes Across Country
In the first study of its kind, two Old Dominion University economics professors have price adjusted real per capita income to compare the relative standard of living - or buying power - among 212 United States metropolitan areas for 1996. They have also estimated real per capita income for the United States.
The study, conducted by Gilbert R. Yochum and Vinod B. Agarwal, took metropolitan area nominal personal income and population figures from the 1996 Regional Economic Information System (REIS) of the U.S. Department of Commerce and weighted them for cost-of-living differences to achieve "real" per capita income figures. The study used 1996 price index data reported by the Dept. of Commerce which was based on the American Chamber of Commerce Research Association's (ACCRA) third quarter 1996 price index of metropolitan areas.
"Given price differentials among metropolitan areas, the Dept. of Commerce figures do not allow for a meaningful comparison of relative living standards," said Yochum. "With these new numbers, we can now compare apples to apples."
According to the study, the top 10 metropolitan areas by real per capita personal income are: West Palm Beach/Boca Raton, Fl. ($35,358); New Haven/Bridgeport/ Stamford/Danbury/Waterbury, Ct. ($31,676); Sarasota/Bradenton, Fl. ($30,325); Houston, Tx. ($28,993); Minneapolis/St. Paul, Mn. ($28,894); Dallas, Tx. ($28,830); Denver, Co. ($28,273); Cincinnati, Oh. ($28,052); Nashville, Tn. ($27,879); and Omaha, Ne. ($27,490).
Surprisingly, the New York metropolitan area, which includes New York City, ranked 210, one of the bottom 10 areas in the country. Yochum and Agarwal contribute this to large concentrations of immigrants and relatively high concentrations of youths.
The bottom 10 metropolitan areas by real per capita income are: Sumter, SC ($17,210); Bakersfield, Ca. ($17,125); Flagstaff, Az. ($16,021); Yuma, Az. ($15,693); Visalia/Tulare/Porterville, Ca. ($15,566); Provo/Orem, Ut. ($15,495); Las Cruces, NM ($14,826); New York, NY ($14,148); Brownsville/Harlingen/San Benito, Tx. ($14,128); and McAllen/Edinburg/Mission, Tx. ($12,146).
Yochum and Agarwal plan to release part two of the study, which will examine why real per capita income varies across metropolitan areas and provide insight on how cities can increase their real per capita income, sometime next month.
For more information about the study, call Dr. Yochum at 757-683-3535 or Dr. Agarwal at 757-683-3526. To receive a copy of the study, call 757-683-3580.
###
RSS