Western incomes 12% higher than reported Details
Was an economic boom in the Western states happening earlier than we thought?
The Census Bureau, using a broader than usual set of income and financial data from 2018, released new estimates of what Americans earn. The program dubbed NEWS — National Experimental Wellbeing Statistics — is digging into the vast amount of economic data collected by government and private institutions, both surveys and filings.
One key revelation from the data is that Western states had 12% more household income than previously reported.
By this math, income was $77,560 for 2018, pushing the West past the Northeast, where the retooled incomes went up 10% to $76,810. The Midwest grew only 4% to $66,460 and the South grew 3% to $58,890.
Overall, NEWS found the typical American household’s 2018 income was 6% larger than originally calculated, at $67,170.
NEWS shows us these larger U.S. incomes were concentrated among people who were older, Hispanic, female, single and naturalized citizens.
Creating this kind of income estimate takes time. Census promises that more results with more geographical slices and deeper dives into various sources of income are on the way.
But even 2018 data gives some hints about the gaps in our knowledge of who’s making what. My trusty spreadsheet found the new national income data raised some interesting questions:
• Location, within locations? America’s suburbs are slightly hotter than we thought. Incomes
of people living just outside principal cities was 7% larger at $75,780. City dweller incomes were actually 6% high at $63,210. But rural incomes didn’t budge, sticking at $50,040.
• More older cash? Elder Americans were the big winners. Incomes of those 65 years and older were found to be 27% higher than the $55,610 originally reported. Incomes for the rest of the nation didn’t change at $71,580.
• Family values? Traditional households still earn the most, but their advantage was modestly smaller. Incomes for nonfamily households were 10% higher at $41,800. Meanwhile, family households grew by 6% to $85,210.
• Wage gap? Men still earn more than women, but that nationwide difference shrunk.
Incomes in female-led households, with no husband present, were found to be 5% higher at $47,490. Compare that to male-led households without a wife with a 3% improvement to $63,550. But note where the bump in non-family household income came from. Single female incomes were found to be 19% higher at $38,010. The comparable male incomes were only revised up 1% to $46,230.
• Racial divide? The incomes of Hispanics are greater than previously reported, too. Hispanics of any race were found to have 12% more pay at $57,710. White, non-hispanics had incomes 5% larger at $74,210. Black incomes grew 4% to $43,100. And Asians grew by 2% to $89,270.
• Citizenship? Immigrant earnings were greater, too. Incomes of naturalized citizens were 10% higher at $72,290. Foreign-born immigrants grew by 9% to $64,140. Those households without legal citizens took in 7% more at $55,670. And native-born Americans were up 5% to $67,680.
Bottom line
We often forget that financial data, whether compiled by government agencies or private firms, are typically some sort of estimate.
A constant challenge is the gap between what’s readily accessible and the nonrespondents — the harder to find people. Filling in those gaps is tricky and the “NEWS” effort is an attempt to improve on the shortfalls of such estimates.
“Accurately measuring household income and poverty is essential to understanding the nation’s overall economic wellbeing,” the executive summary of the report said.