ANALYSIS OF GROWTH AND CHANGE AMONG ANALYSIS OF GROWTH AND CHANGE AMONG THE MAJOR COMPONENTS OF PERSONAL THE MAJOR COMPONENTS OF PERSONAL

INCOME WITHIN DOUGLAS COUNTYINCOME WITHIN DOUGLAS COUNTY

Thomas R. HarrisThomas R. Harris

Recent RecessionsRecent Recessions

Table 1. Length of Last Four National Recessions.

Dates of RecessionLength of Recession

(months)Beginning Ending

July 1981 November 1982 16

July 1990 March 1991 8

March 2001 November 2001 8

December 2007 June 2009 18

Source: National Bureau of Economic Research. U.S. Bureau Cycle Expansion and contractions.” Cambridge, MA, April 1, 2010.

DOUGLAS COUNTYDOUGLAS COUNTY

STRONGER ECONOMIES TOGETHERSTRONGER ECONOMIES TOGETHER

• Usually look only at employment

• Understanding Sources of Income will give additional perspective

• Sources of Income provide information for regionalization

• Gives perspective of the county’s economy

DOUGLAS COUNTY: DOUGLAS COUNTY: BACKGROUND INFORMATIONBACKGROUND INFORMATION

• In 2010, Per Capita Income in Douglas County was $52,084.

• Douglas County is ranked 55th highest among the nation’s 3,140 counties.

• In 2010, Douglas County’s Average Earnings Per Job was $39,388.

• This ranked Douglas County 14th among Nevada’s 17 counties.

• What does the difference mean?

• Any Economic Development Opportunities?

• The share of Douglas County's personal income that originates as property income (36.1%) is well above the share nationally (16.8%).

• The share of Douglas County's personal income that stems from transfer payments (13.8%) is below the national average (14.7%).

• In combination, property income and transfer payments amounted to 49.9% of Douglas County's income in 2010. Earned income made up the balance with 50.1% of personal income, which amounted to a substantially smaller share than the corresponding 64.8% for earned income nationwide.

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Fig.2. County, State, and National comparison of major personal income components.Fig.2. County, State, and National comparison of major personal income components.

The above figure traces their changing share and relative importance over time. Differences in growth among the three income components translates the changes in their relative share, as shown here. Earned income as a share of Douglas County's personal income declined from 71% in 1969 to 50.1% in 2010; a shift in relative share of -20%. Offsetting this decline was a 11.1% increase in property income's share from 25% in 1969 to 36.1% in 2010; and a 9.1% advance in transfer payments share, from 4.7% to 13.8% over the same period.

Property income as a share of personal income locally, statewide, and nationally from 1969-2010. Common to all three is the rise and advancement of property income’s share to a new plateau from 1979-82. This period was plagued by double-digit rates of inflation and interest. This played a leading role in the growth and rise in share of property income over 1979-82. Moreover, contained within the period 1979-82 were two back-to-back recessions. Unlike many recessions, the early 1980s recessions were disbursed regionally so declines in the share of earned income were often observed, further bolstering property income's share during this period. Also the dip in 2008 to 2009 reflects quantitative easing by the FED.

DOUGLAS COUNTYDOUGLAS COUNTY

CyclicalRespose Standard

Douglas Index ErrorNet Industry Earnings 1.47 0.392(***)Property Income 1.77 0.633(***)Retirement Related Transfers 0.23 0.456(NS)Other Transfers -6.16 0.843(***)Total Personal Income 1.42 0.326(***)

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