Wednesday, July 13, 2016

Oregon’s Income is Less Dependent on Earnings, More on Benefits

The largest source of total personal income for Oregon residents is earnings (60%), followed by transfer receipts (21%), and dividends, interest, and rent (19%). In other words, for every $100 of income that accrued to Oregonians in 2015, $60.50 was derived from earnings, $20.60 from transfer receipts, and $18.90 from investment income.

Oregon’s per capita personal income was $42,974 in 2015, or 90 percent of the U.S. per capita income. Compared with the nation, Oregon relies more on investment income and less on earnings for its personal income. Over time, the composition of Oregon’s total income has changed, with more income coming from transfer receipts and less from earnings, although earnings still make up $3 out of every $5 earned by Oregonians.
‘Earnings’ is essentially income derived from working. Nearly half of Oregon’s wages are earned in just three industries: government; trade, transportation, and utilities; and education and health care (private). We’re no different from the nation in that regard. However, Oregon diverges from national trends in that we derive more earnings from manufacturing and company headquarters (management of companies and enterprises). For manufacturing, not only is it more concentrated in Oregon, it also pays more than the national average. For company headquarters, Oregon wages are lower than the national average but it’s still a high-paying industry which, like manufacturing, is relatively more concentrated here.

To learn more about other components of Oregonians' income: transfer receipts, dividends, interest, and rent, read Regional Economist Amy Vander Vliet's article "Oregon’s Income is Less Dependent on Earnings, More on Benefits".

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