Per Capita Personal Income (PCPI) in Wisconsin in 2002 of $29,923 was 97 percent of the per capita income in the United States of $30,941. The PCPI in Wisconsin ranked 21st in the nation, better than Indiana, Iowa, Nebraska and Ohio; but lower than Minnesota, Illinois, and Michigan. The current rank is lower than in the last two years (19th in 2000 and 20th in 2001) in spite of an increase from 2001 to 2002 of 2.5 percent that was slightly better than the increase of 1.7 percent in the United States. The relationship of Wisconsin PCPI to the rest of the states doesn’t fluctuate significantly from year to year and one of the primary reasons why Wisconsin remains in that position is the decentralization and composition of its labor force.
While most of the labor force in Wisconsin is located in metropolitan areas the share of metropolitan labor force is much smaller than in other states, especially those neighboring states with a higher per capita income. In Wisconsin roughly 68 percent of the labor force lives in a metropolitan area compared with 70 percent in Minnesota and 85 percent in Illinois. Nationwide, 80 percent of the labor force lives in a metropolitan area.
Per capita personal income is higher in metropolitan areas. Every year in early spring the Bureau of Economic Analysis releases updates to the total personal income estimates for counties. In 2001 (latest available for sub-state areas - see chart below) the PCPI for all metropolitan areas in the United States was $32,336 compared with $22,472 for all non-metropolitan areas and $30,413 for all areas combined. Although the ratio changes from state to state, in every case PCPI in metropolitan areas is higher than both the total and the non-metropolitan PCPI. Thus, states with a greater share of population in metropolitan areas have a higher total PCPI.
There are several reasons for higher incomes in metropolitan areas. First, the concentration of professional and technical jobs, with the greater earnings potential, is greater in metropolitan areas. Second, there are more corporate offices, with higher paying administrative positions, in larger metro areas. And third, competition for jobs, both professional and non-professional, places upward pressure on wages.
| 2001 County Per Capita Personal Income in Wisconsin (ranked) | |||||||
|---|---|---|---|---|---|---|---|
| County | Income | County | Income | County | Income | ||
| Ozaukee | $47,122 |
|
Calumet | $26,200 |
|
Iron | $21,936 |
| Waukesha | $41,337 |
|
Manitowoc | $26,099 |
|
Langlade | $21,908 |
| Dane | $36,201 |
|
Columbia | $26,081 |
|
Kewaunee | $21,888 |
| St. Croix | $32,232 |
|
Waupaca | $25,959 |
|
Jackson | $21,854 |
| Washington | $31,941 |
|
Rock | $25,908 |
|
Dunn | $21,815 |
| Outagamie | $31,274 |
|
Vilas | $25,279 |
|
Shawano | $21,734 |
| Brown | $30,535 |
|
Portage | $25,216 |
|
Monroe | $21,359 |
| Milwaukee | $29,886 |
|
Chippewa | $25,199 |
|
Washburn | $21,108 |
| Racine | $29,550 |
|
Green | $25,102 |
|
Crawford | $20,990 |
| Door | $29,534 |
|
Walworth | $24,831 |
|
Richland | $20,977 |
| Sheboygan | $29,409 |
|
Iowa | $24,601 |
|
Juneau | $20,709 |
| Wood | $29,155 |
|
Barron | $23,881 |
|
Taylor | $20,645 |
| Winnebago | $28,704 |
|
Dodge | $23,872 |
|
Burnett | $20,625 |
| Fond du Lac | $28,649 |
|
Douglas | $23,364 |
|
Clark | $20,587 |
| Marathon | $28,274 |
|
Florence | $23,331 |
|
Pepin | $20,560 |
| Jefferson | $27,901 |
|
Trempealeau | $23,110 |
|
Marquette | $20,048 |
| La Crosse | $27,820 |
|
Polk | $23,030 |
|
Rusk | $19,984 |
| Kenosha | $27,217 |
|
Lincoln | $23,016 |
|
Forest | $19,760 |
| Oneida | $27,176 |
|
Sawyer | $22,983 |
|
Lafayette | $19,529 |
| Pierce | $27,141 |
|
Marinette | $22,603 |
|
Oconto | $19,473 |
| Sauk | $27,036 |
|
Price | $22,482 |
|
Waushara | $19,172 |
| Green Lake | $26,563 |
|
Ashland | $22,428 |
|
Adams | $19,121 |
| Buffalo | $26,358 |
|
Bayfield | $22,234 |
|
Vernon | $18,570 |
| Eau Claire | $26,315 |
|
Grant | $22,182 |
|
Menominee | $16,930 |
| Source: US Dept. of Commerce, Bureau of Economic Analysis, REIS May 6, 2003 | |||||||
The PCPI in Wisconsin reflects the rural nature of the state and that the metropolitan areas are numerous and small. There are 20 counties included in metropolitan areas, and 15 are among the top 20 with the highest PCPI in the state. Per capita personal income is a measure of all income sources (wages and salaries, asset income, and transfer payments) divided by the total population.
In the case of some of the counties with the highest PCPI the wages and salaries are earned outside the county. A good example is St. Croix County (part of the Minneapolis-St. Paul, MN MSA). Nearly half (47%) of the net earnings in St. Croix County are earned outside the county. Over 15,000 residents (43% of the labor force) commute to jobs in Minnesota. A similar scenario unfolds every day in Kenosha County where nearly 30 percent of the labor force travels to jobs in Illinois. There roughly 31 percent of the net earnings are from residents working outside the county.
Finally, earnings are the most significant component of PCPI. The highest ranked counties have the greatest share of total personal income from net earnings while the lowest ranked counties have the least share of income from earnings. There are a few notable exceptions among the top ten counties, however. In Ozaukee County, net earnings are only 66 percent of total income and in Door County only 50 percent of total income is from earnings. In both these counties the income from assets is more significant
Written by Bev Gehrke, Regional Analyst for Wisconsin Northwest and
West Central areas. May, 2003.