Total Personal Income by Place of Residence is the income from all sources received by individuals, nonprofit institutions, private noninsured welfare funds, and private trust funds.Total personal income is calculated by summing wage and salary disbursements, other labor income, proprietors’ income (with inventory valuation and capital consumption adjustments), rental income of persons (with capital consumption adjustment), personal dividend income, personal interest income, and transfer payments, less personal contributions for social insurance. Personal income is measured before the deduction of personal income taxes and other personal taxes and is reported in current dollars. The Bureau of Economic Analysis seasonally adjusts and publishes income data in its Survey of Current Business.
Wage and Salary Disbursements by Place of Work, a component of personal income, is defined as the monetary remuneration of employees, including the compensation of corporate officers, commissions, tips, bonuses, and receipts in kind. Disbursements are recorded on a place-of-work basis and are then adjusted to a place-of-residence basis for the data series Personal Income by Place of Residence. This is done so that the income of the recipients whose place of residence differs from their place of work will be correctly assigned to the appropriate state of residence. Additional definitions related to personal income are available in the BEA’s online glossary of regional economic accounts terms, http://bea.gov/bea/regional/articles/spi2001/glossary.cfm.
Source
U.S. Bureau of Economic
Analysis
http://www.bea.gov