Earnings in North Carolina: An Analysis of the Industrial Mix and Local Effects

The impressive growth of economic activity in the State of North Carolina since World War II has been accompanied by a rather disappointing performance in per capita personal income. It now seems apparent that the rapid rate of closure between North Carolina and the rest of the United States in per capita personal income has declined in recent years. Further, economic projections indicate that North Carolina will likely continue to experience little growth in per capita income relative to the nation. Per capita personal income is perhaps the most widely accepted and applied social indicator of the quality of life in a region. While per capita income is primarily an economic indicator, both economic and non-economic variables may affect its level. For example, high dependency ratios reflect a relatively lower percentage of the population in working ages and tend to depress per capita income. The labor force participation rate and the unemployment rate account for that part of the working age population actually employed. Together these factors determine the proportion of society employed in the economy. Earnings received in exchange for labor service account annually for more than four-fifths of total personal income in North Carolina, the remainder being composed of proprietors' income, property income, and transfer payments