[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/ags/jrapmc/243973.html
   My bibliography  Save this article

The Importance of Non-labor Income: An Analysis of Socioeconomic Performance in Western Counties by Type of Non-labor Income

Author

Listed:
  • Lawson, Megan M.
  • Rasker, Ray
  • Gude, Patricia H.
Abstract
Non-labor income (NLI) is one of the largest and fastest growing sources of income, constituting more than one-third of personal income in the U.S. West. Given the unprecedent-ed growth in NLI and its diverse make-up, which includes investment income, Social Security, Medicare and Medicaid, and welfare, it is worth asking what effect the different types of NLI have on local economies and social well-being. We classify NLI into payments associated with investments, aging, and economic hardship, and then we use an empirical approach to evalu-ate the relationships between these NLI types and socioeconomic performance in western counties. We find that the NLI types accruing in the West are concentrated in rural counties and are associated with predictable, and in many cases undesirable, socioeconomic character-istics. Policies and demographic trends that affect the disbursement of NLI (e.g., aging baby boomers and reforms to retirement, income maintenance, and medical benefits) will have widespread effects, particularly in the rural West.

Suggested Citation

  • Lawson, Megan M. & Rasker, Ray & Gude, Patricia H., 2014. "The Importance of Non-labor Income: An Analysis of Socioeconomic Performance in Western Counties by Type of Non-labor Income," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 44(2).
    • Handle: RePEc:ags:jrapmc:243973
    DOI: 10.22004/ag.econ.243973
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/243973/files/jrap_v44_n2_a7_lawson.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.243973?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peter B Nelson, 2005. "Migration and the Regional Redistribution of Nonearnings Income in the United States: Metropolitan and Nonmetropolitan Perspectives from 1975 to 2000," Environment and Planning A, , vol. 37(9), pages 1613-1636, September.
    2. Cebula, Richard J. & Alexander, Gigi M., 2006. "Determinants of Net Interstate Migration, 2000-2004," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(2), pages 1-8.
    3. Gunderson, Ronald J. & Sorenson, David J., 2010. "An Examination of Domestic Migration from California Counties," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(1), pages 1-19.
    4. Gunderson, Ronald J. & Pinto, James V. & Williams, Robert H., 2008. "Economic or Amenity Driven Migration? A Cluster-Based Analysis of County Migration in the Four Corners States," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(3), pages 1-12.
    5. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    6. Congressional Budget Office, 2013. "Updated Budget Projections: Fiscal Years 2013 to 2023," Reports 44172, Congressional Budget Office.
    7. Congressional Budget Office, 2013. "The Budget and Economic Outlook: Fiscal Years 2013 to 2023," Reports 43907, Congressional Budget Office.
    8. DaVanzo, Julie, 1978. "Does Unemployment Affect Migration?-Evidence from Micro Data," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 504-514, November.
    9. Gunderson, Ronald J. & Ng, Pin T., 2005. "Analyzing the Effects of Amenities, Quality of Life Attributes and Tourism on Regional Economic Performance using Regression Quantiles," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 35(1), pages 1-22.
    10. Graves, Philip E & Waldman, Donald M, 1991. "Multimarket Amenity Compensation and the Behavior of the Elderly," American Economic Review, American Economic Association, vol. 81(5), pages 1374-1381, December.
    11. Congressional Budget Office, 2013. "The Budget and Economic Outlook: Fiscal Years 2013 to 2023," Reports 43907, Congressional Budget Office.
    12. Lacombe, Donald J. & Michieka, Nyakundi M. & Gebremedhin, Tesfa, 2012. "A Bayesian Spatial Econometric Analysis of SNAP Participation Rates in Appalachia," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 42(3), pages 1-12.
    13. Chi, Guangqing & Marcouiller, David W., 2012. "Recreational Homes and Migration to Remote Amenity-Rich Areas," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 42(1), pages 1-14.
    14. Congressional Budget Office, 2013. "The Budget and Economic Outlook: Fiscal Years 2013 to 2023," Reports 43907, Congressional Budget Office.
    15. Congressional Budget Office, 2013. "Updated Budget Projections: Fiscal Years 2013 to 2023," Reports 44172, Congressional Budget Office.
    16. repec:rre:publsh:v:37:y:2007:i:2:p:251-78 is not listed on IDEAS
    17. Cromartie, John & Nelson, Peter, 2009. "Baby Boom Migration and Its Impact on Rural America," Economic Research Report 55947, United States Department of Agriculture, Economic Research Service.
    18. Schlottmann, Alan M & Herzog, Henry W, Jr, 1981. "Employment Status and the Decision to Migrate," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 590-598, November.
    19. Deller, Steven C., 2009. "Wages, Rent, Unemployment and Amenities," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(2), pages 1-14.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francisco Parro & Loreto Reyes, 2017. "The rise and fall of income inequality in Chile," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 26(1), pages 1-31, December.
    2. Kent Kovacs & Robert G. Haight & Grant West, 2017. "Protected Area Designation, Natural Amenities, and Rural Development of Forested Counties in the Continental United States," Growth and Change, Wiley Blackwell, vol. 48(4), pages 611-639, December.
    3. James, Ryan D. & Campbell Jr., Harrison S., 2016. "Exploring the Role of Unearned and Non-Wage Income on Regional Income Convergence," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(2), December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jason E. Taylor & Ronald L. Klingler, 2016. "Fiscal Contraction and Economic Expansion: The 2013 Sequester and Post–World War II Spending Cuts," Cato Journal, Cato Journal, Cato Institute, vol. 36(1), pages 69-88, Winter.
    2. Christopher S. Brunt, 2015. "Medicare Part B Intensity and Volume Offset," Health Economics, John Wiley & Sons, Ltd., vol. 24(8), pages 1009-1026, August.
    3. Shinichi Nishiyama, 2013. "Fiscal Policy Effects in a Heterogeneous-Agent Overlapping-Generations Economy With an Aging Population: Working Paper 2013-07," Working Papers 44941, Congressional Budget Office.
    4. Robert Murphy, 2016. "Explaining the Recent Behavior of Inflation in the United States," EcoMod2016 9550, EcoMod.
    5. Michalis Nikiforos, 2013. "Employment Recovery? after the Great Recession," Economics Policy Note Archive 13-03, Levy Economics Institute.
    6. Jagjit S Chadha & Philip Turner & Fabrizio Zampolli, 2013. "The interest rate effects of government debt maturity," BIS Working Papers 415, Bank for International Settlements.
    7. Liu, Liqun & Rettenmaier, Andrew J. & Saving, Thomas R. & Wang, Zijun, 2017. "The effects of trust fund surpluses on the rest of the federal budget," The Quarterly Review of Economics and Finance, Elsevier, vol. 64(C), pages 228-237.
    8. Murphy, Robert G., 2014. "Explaining inflation in the aftermath of the Great Recession," Journal of Macroeconomics, Elsevier, vol. 40(C), pages 228-244.
    9. David M. Byrne & Stephen D. Oliner & Daniel E. Sichel, 2013. "Is the Information Technology Revolution Over?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 25, pages 20-36, Spring.
    10. Dimitri B. Papadimitriou & Greg Hannsgen & Michalis Nikiforos, 2013. "Is the Link between Output and Jobs Broken?," Economics Strategic Analysis Archive sa_mar_13, Levy Economics Institute.
    11. Bo Zhao & David Coyne, 2017. "Walking a Tightrope: Are U.S. State and Local Governments on a Fiscally Sustainable Path?," Public Budgeting & Finance, Wiley Blackwell, vol. 37(3), pages 3-23, September.
    12. David J. Stockton, 2013. "Fiscal Policy in the United States: Still in Need of a Strategy," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(02), pages 09-16, August.
    13. Robert G. Murphy, 2016. "Why Has Inflation Been So Unresponsive to Economic Activity in Recent Years?," Boston College Working Papers in Economics 920, Boston College Department of Economics.
    14. Barry Z. Cynamon & Steven M. Fazzari, 2017. "Household Income, Demand, and Saving: Deriving Macro Data With Micro Data Concepts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(1), pages 53-69, March.
    15. Jannsen, Nils, 2013. "Zu den automatischen Budgetkürzungen in den Vereinigten Staaten," Kiel Insight 2013.1, Kiel Institute for the World Economy (IfW Kiel).
    16. Michalis Nikiforos, 2013. "A New 'Lehman Moment,' or Something Worse? A Scenario of Hitting the Debt Ceiling," Economics Policy Note Archive 13-09, Levy Economics Institute.
    17. Stormy-Annika Mildner & Julia Howald, 2013. "Jumping the Fiscal Cliff: The Political Economy of Fiscal Policy-Making under President Obama," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(02), pages 17-24, August.
    18. David Greenlaw & James D. Hamilton & Peter Hooper & Frederic S. Mishkin, 2013. "Crunch Time: Fiscal Crises and the Role of Monetary Policy," NBER Working Papers 19297, National Bureau of Economic Research, Inc.
    19. repec:aei:rpaper:37301 is not listed on IDEAS
    20. John Goering & Christine M. E. Whitehead, 2017. "Fiscal Austerity and Rental Housing Policy in the United States and United Kingdom, 2010–2016," Housing Policy Debate, Taylor & Francis Journals, vol. 27(6), pages 875-896, November.
    21. Chi, Guangqing & Marcouiller, David W., 2012. "Recreational Homes and Migration to Remote Amenity-Rich Areas," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 42(1), pages 1-14.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jrapmc:243973. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/mcrsaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.