Table SA05 -- Personal Income by Major Source and Earnings by Industry


     The first section of the Table SA05 presents the summary
statistics: Personal income, population (estimated as of July 1 of each
year by the Census Bureau), and per capita personal income, which is the
ratio of personal income to population. Nonfarm personal income, which
is personal income less farm earnings (defined below), is also
presented.
     The second part of Table SA05 presents the derivation of personal
income. Personal income is measured as the sum of wages and salaries;
other labor income; proprietors' income; dividends, interest, and rent;
and transfer payments; less personal contributions for social insurance.
The sum of the first three of these components is termed "earnings," and
the last is largely a deduction from earnings.  The personal income of a
State is defined as the income received by the residents of the State,
but the estimates of wages and salaries, other labor income, and
personal contributions for social insurance by employees are based
mainly on source data that are reported not by the place of residence of
the income recipients but by their place of work.  Accordingly, an
adjustment for residence--which is the net inflow of the earnings of
wage and salary workers who are interstate commuters--is estimated so
that place-of-residence measures of earnings and personal income can be
derived. (The estimates of proprietors' income, although presented on
the table as part of place-of-work earnings, are largely by place of
residence; no residence adjustment is made for this component.) Net
earnings by place of residence is calculated by subtracting personal
contributions for social insurance from earnings by place of work and
then adding the adjustment for residence. The estimates of dividends,
interest, and rent, and of transfer payments are prepared by place of
residence only.
     The third part of Table SA05 presents the estimates of earnings by
type of payment and by industry. The estimates of total earnings by
place of work are provided at the Standard Industrial Classification
(SIC) two-digit level. The principal source data for the wage and salary
portion of BEA's earnings estimates are from the ES-202 series provided
by the Bureau of Labor Statistics. The ES-202 series provides monthly
employment and quarterly wages for each State (and county) in SIC
four-digit detail.  BEA restricts its earnings estimates to the SIC
Division ("one-digit") and two-digit levels and suppresses these
estimates in many individual cases in order to preclude the disclosure
of information about individual employers.
    Greater detail of the BEA State-level personal income methodology is
located in the PI_METH sub-directory of the SPI CD-ROM.  Please read
the file README.DOC in that directory, or select "1987-93 Methodology"
from the "Personal Income Methodology" submenu of the "Documentation"
menu.

U.S. Department of Commerce
Bureau of Economic Analysis
Regional Economic Measurement Division