How to Calculate Per Capita Personal Income
Per capita personal income is a measure of the average amount of income per person in a given region. Per capita means per person. It is a different measure than per capita GDP, which includes not only personal income but also investment, government expenditure and net exports. Per capita income gives a more accurate, although not completely flawless, measure of average income levels.
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Instructions
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Gather information regarding population size for the area you wish to study. Information on population may be found from government statistical agencies. In the United States, data for population sizes may be found from the U.S. Census Bureau, which conducts population surveys every 10 years. At the time of publication, the last census was in 2010.
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Gather data regarding total personal income for a given region for the same time period as that of population size. Personal income takes into account not only wages but all of net earnings, which may include income derived from dividends, rental income, investment income and interest. For the United States, data on personal income may be found from the U.S. Bureau of Economic Analysis.
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Divide the total personal income in a given region by its total population for the same time period to derive per capita personal income. This figure will give you an indication of a region's wealth and prosperity. To compare per capita personal income between two regions, ensure that you compare data for the same time period.
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Tips & Warnings
Although per capita personal income does give some indication of comparable income levels, it is by no means an accurate means of comparison. Remember that population sizes take into account children and those who have passed retirement age. Thus, two areas may have the same per capita personal income, but the actual average incomes may significantly differ. This may be due to one region having significantly more children than the other, which may lower the actual average personal income.
