The document provides a socioeconomic profile of Erie County, Pennsylvania. It includes data on demographics, employment, income, firms, and other economic indicators from 1970 to 2006. Some highlights are that population growth in Erie County was somewhat slow, median age was somewhat young, per capita income and average earnings per job were roughly average, and the education rate and share of government employment were also roughly average compared to other US counties.

1. www.headwaterseconomics.org
A SocioEconomic Profile
Erie County, Pennsylvania
Produced by the
Economic Profile System (EPS)
February 14, 2009

2. Erie County, Pennsylvania About EPS
About The Economic Profile System (EPS)
This profile was produced using the 2008 version of the Economic Profile System (EPS), last updated in February 2009. EPS is designed
to allow users to produce detailed socioeconomic profiles automatically and efficiently at a variety of geographic scales using the
spreadsheet program Microsoft Excel.
Profiles contain tables and figures that illustrate long-term trends in population; employment and personal income by industry; average
earnings; business development; retirement and other non-labor income; commuting patterns; agriculture; and earnings by industry.
Databases used for EPS profiles are from: Bureau of the Census including County Business Patterns; Bureau of Labor Statistics; and the
Regional Economic Information System (REIS) of the Bureau of Economic Analysis, U.S. Department of Commerce.
EPS was developed in partnership with the Bureau of Land Management by Ray Rasker, Jeff van den Noort, Ben Alexander and Patty
Gude.
EPS and Acrobat files (.pdf) of completed profiles for the West are available for free download at www.headwaterseconomics.org.
For technical questions about EPS, contact Jeff van den Noort at jeff@headwaterseconomics.org.
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3. Erie County, Pennsylvania Table of Contents
About the Economic Profile System
Table of Contents
Read This First
Demographics, Employment and Income
Demographics, Employment and Income 1
Population Trends 2
Population 3
Age and Gender 4
Income Distribution & Housing 5
Employment 6
Employment 7
Personal Income 8
Proprietors 9
Non-labor Income 10
Transfer Payments 11
Personal Income 12
Government Employment 13
Earnings Per Job 14
Per Capita Income 15
Firms by Industry 16
Firms by Industry in 2001 (NAICS) 17
Firms by Size 18
Unemployment Trends 19
Commuting 20
Agriculture (Business Income) 21
Relative Performance Comparisons
Relative Performance Comparisons 22
Specialization 23
Stability 24
Performance Comparisons 25
Employment and Personal Income by Industry
Employment and Income by Industry 26
Read This First 27
Employment (SIC) 28
Employment (NAICS) 29
Personal Income (SIC) 30
Personal Income (NAICS) 31
Wages and Employment 32
Data Sources Data Sources
Methods Methods
Glossary Glossary
Table of Contents

4. Erie County, Pennsylvania Read This First
There are two related systems for producing socioeconomic profiles: this one, the Economic Profile System (EPS) and the Economic
Profile System Community (EPSC). For best results, use both profile systems. Below is a table highlighting how the two systems
complement each other.
EPS EPSC
Geographic level of detail Nation Nation, Region, Division, States, Counties,
Region (metro, non-metro, total) County Subdivisions, Places (Towns), Indian
Reservations, Congressional Districts
State (metro, non-metro, total)
County
Databases used Bureau of the Census (Census) Bureau of the Census, Decennial Census of
County Business Patterns (CBP) Population and Housing, 1990, 2000. (1990 to
2000 comparisons at the county level only)
Bureau of Labor Statistics (BLS)
Bureau of Economic Analysis (BEA), Regional
Economic Information System (REIS)
Time series used Continuous data from 1970 to the most recent 2000. At the county level only 1990 to 2000
data available. comparisons can be made to show changes in
age and household income distribution.
Advantages Long-term trend analysis including trends in Age distribution, race, housing costs, housing
employment and personal income by sector, the affordability, education rates, poverty.
number of businesses establishments by type
and size, and non-labor sources of income such
as retirement and age-related income.
Wages by Industry. Finer geographic detail.
Counties are compared to states and nation. Key
indicators of performance are benchmarked
against the US medians.
Disadvantages For some counties employment and personal Census data is never suppressed, but it is less
income data may be suppressed for some useful than REIS data used in EPS to see long-
industries and for some years. EPS includes a term trends by industry; it is only available only
system for estimating these data gaps. for 2000 with limited comparisons to 1990.
Important notes:
1) Total employment figures from the Regional Economic Information System (used in most of EPS) and the other sources can
differ for the following reasons:
- Census employment figures are reported by place of residence, while BEA REIS and the other sources are by place of work.
- BEA REIS counts all jobs, regardless of whether part-time or whether a person has several jobs. For example, if a person has
three part-time jobs, they count it as three jobs.
- In some areas seasonality may play a role: the census is taken in the spring, a shoulder season for many “resort” areas, while
BEA REIS data is an annual average.
- BEA REIS includes sole proprietors and government employment while County Business Patterns and BLS Wages do not.
- Earnings from BEA REIS on pages 14 and 25 include the value of benefits while the wages on page 32 from the BLS do not.
2) Tables and charts may be copied from Excel into any other program, like Word or PowerPoint: highlight the selection, choose
copy from the edit menu, then open Word or PowerPoint and insert by choosing "Paste Special" in the Edit Menu. We
recommend that you paste charts as a picture.
3) This profile also shows business cycles, represented as vertical bars on selected charts.
4) EPS is updated every year with the latest figures.
5) All income figures in this profile (except for the graph on the top of page 5) are adjusted for inflation reported in 2006 dollars.
Introduction

5. Erie County, Pennsylvania Demographics, Employment and Income
The following pages (2-25) contain long-term trends in demographics, employment and income. No disclosure restrictions occur in this
section.
In this section you will learn about:
1. Changes in population, age distribution, household income distribution and housing affordability.
2. Comparisons of the county to the state and the nation.
3. Employment and income by type: proprietors versus wage and salary.
4. Personal income by type: labor versus non-labor income.
5. The role of transfer payments.
6. How well does this area recover from recessions?
7. Trends in government employment.
8. Earnings per job versus per capita income.
9. Growth in firms by size and industry type.
10. Unemployment rates.
11. Cross-county flow of dollars via commuting.
12. Trends in agricultural businesses.
Highlights - In Erie County, Pennsylvania:
These highlights are based on how this area compares to the distribution of all of the counties in the United States. See the methodology
section at the end for more information.
• Population Growth (Annualized rate, 1970-2006) was somewhat slow.
• Employment Growth (Annualized rate, 1970-2006) was somewhat slow.
• Personal Income Growth (Adjusted for Inflation, Annualized rate, 1970-2006) was somewhat slow.
• Non-labor Income Share of Total in 2006 was roughly average.
• Median Age* was somewhat young.
• Per Capita Income (2006) was roughly average.
• Average Earnings Per Job (2006) was somewhat high.
• Education Rate* (% of population 25 and over who have a college degree) was somewhat high.
• Education Rate* (% of population 25 and over who have less than a high school diploma) was somewhat low.
• Employment Specialization* was roughly average.
• Rich-Poor Ratio* (for each household that made over $100K, how many households made less than $30K) was roughly average.
Housing Affordability in 2000 (100 or above means that the median family can afford the median house)* was roughly average
• affordable.
• Government share of Total employment was somewhat low.
• Unemployment Rate in 2007** was roughly average.
* from 2000 US Census ** from Bureau of Labor Statistics
Demographic, Employment and Income Trends Page 1

6. Erie County, Pennsylvania Population Trends
Population
Population Trends
285.0
280.0 279,686
• From 1970 to 2006
Thousands of People
population grew by
15,371 people, a 6% 275.0
increase in population.
270.0
265.0
• At an annual rate, this 260.0
represents an increase
of 0.2%.
255.0
70
73
76
79
82
85
88
91
94
97
00
03
06
19
19
19
19
19
19
19
19
19
19
20
20
20
The vertical shaded bars on the figure below represent the last five recession periods: November 1973 to March 1975; January 1980 to
July 1980; July 1981 to November 1982; July 1990 to March 1991; March 2001 to November 2001. More information about recessions
is available on the next page.
Population Growth Compared to the State and the Nation
Population Comparison
Population Comparison
• Over the last 36 years
population growth in Erie
160
160 160
145
County, Pennsylvania 140 147
145
140 140
Population (Index 1970=100)
has been the same as
Population (Index 1970=100)
Population (Index 1970=100)
Pennsylvania and 120
slower than the nation. 120 120
106
105
100 106
105
106
105
100 100
8080
• Population growth is not 80
generally impacted by 6060
national recessions. 60
4040
40
2020
20 - -
• Data is indexed by - -
-
dividing by the value in -
721 7 0
19 972
19 774
19 1 976
19 978
19 780
19 19982
19 984
19 986
19 19 8
0
19 992
19 19 94
19 6
78
20 00
20 2
04
066
0
761 3
6
821 9
841 82
85
901 88
1
9619 4
0220 0
3
19 1 97
98
99
9
99
0
20 0
1970 times 100. A
781 7
9
20 0
199
199
9
9419
9819
0020
0420
0620
9
9
19
19
701
741
801
861
881
921
value of 100 indicates
19
19
19
20
20
20
that it has not changed Recession Bars
Recession Bars Erie County, Pennsylvania
Erie County, Pennsylvania
National Recessions Erie County, Pennsylvania
since 1970. Pennsylvania
Pennsylvania United States States
United
Pennsylvania United States
Source: BEA REIS 2006 Table CA30
Page 2 Demographic, Employment and Income Trends

7. Erie County, Pennsylvania Population
How well do we recover from recessions?
An important indicator of economic performance is the ability to recover quickly from recessions.
A recession is defined by the National Bureau of Economic Research as “a significant decline in activity spread across the economy,
lasting more than a few months, visible in industrial production, employment, real income, and wholesale-retail sales.”
The graph below shows how well we have recovered from the last five recessions. The recovery periods are from the end of one
recession (the trough) to the beginning of the next recession (the peak).
This type of graph is repeated throughout the profile to show how the area recovers from recessions compared to the state and the nation.
See www.nber.org/cycles.html for more information about business cycles.
Population Growth During Recent Recoveries -
Annualized % Change from Trough to Following Peak
• In the latest recovery (2001 to
2006), population growth in
1.4%
1.2%
the United States (up 0.9%) 1.2%
1.1%
outpaced Pennsylvania and 1.0%
Erie County, Pennsylvania. 1.0% 0.9% 0.9%
Annual % Change
0.8%
• Similarly, in the last recovery
(1991 to 2001), the United 0.6%
States (up 1.2%) grew the
fastest. 0.4%
0.3%
0.2% 0.2%
0.2% 0.1%
0.1% 0.1%
• In the recovery from 1982 to
1990, the United States (up
0.0%
0.0%
-0.1%
0.9%) grew the fastest. -0.2% -0.1%
-0.2%
-0.4%
1975 to 1980 1980 to 1981 1982 to 1990 1991 to 2001 2001 to 2006
Erie County, Pennsylvania - Population Pennsylvania - Population
United States - Population
Source: BEA REIS 2006 Table CA30
Demographic, Employment and Income Trends Page 3

8. Erie County, Pennsylvania Age and Gender
(From EPSC)
• The population has
gotten older since
Population by Age and Sex
1990. The median age Density
in 2000 is 36.2 years, 40 - 54 (Baby Median (Pop.
up from 32.9 years in Total Under 20 years Boom in 2000) 65 years and over Age per sq.
1990. Number Number Share NumberShare Number Share mi.)
Total Population
2000 280,843 80,092 29% 60,412 22% 40,256 14% 36.2 350.2
• The largest age 1990 275,572 82,322 30% 44,422 16% 38,025 14% 32.9 343.6
category is 15 to 19 10 Yr. Change 5,271 (2,230) -1% 15,990 5% 2,231 1% 3.3 6.6
years old (22,404
10 Yr. % Change 2% -3% 36% 6% 10% 2%
people or 8.0% of the
total). 2000 Sex Breakout
Male 136,967 41,067 30% 30,054 22% 16,109 12% 34.6
• Total Population in Female 143,876 39,025 27% 30,358 21% 24,147 17% 37.7
2000 was 280,843 Male/Female Split 49% / 51% 51% / 49% 50% / 50% 40% / 60%
people, up 2% from
2000 Table SF1 - P12 & 1990 SF1 Table P05 & P12
275,572 in 1990.
• The age group that has In the graphs below, changes in population by age are shown two ways. The "Change in Population" graph
grown the fastest, as a illustrates how each age bracket has changed in the last 10 years. The "Change in Share" graph illustrates
share of total, is 45 to how each category has changed as a share of total. Note that an age bracket can have an increase in
49 years , up 6,552 population while declining as a share of total. The "Change in Share" graph usually demonstrates how the
people. Their share of baby boom has caused a demographic shift in the population (growth in the 40-60 age brackets).
total rose by 2.2%
Note: In aggregated profiles, medians are interpolated.
2000 Breakout Change in Population Change in Share of Total
(90-2000) (90-2000)
85 years and over 3,539 1,353 1,572
80 to 84 years 3,985 2,248 1,853
75 to 79 years 5,474 3,689 1,872
70 to 74 years 5,854 4,412 35
65 and 69 years 5,295 4,407 3,031
60 and 64 years 5,624 5,078 2,300
55 to 59 years 6,951 6,503 1,968
50 to 54 years 8,608 8,577 5,307
45 to 49 years 10,583 10,420 6,552
40 to 44 years 11,167 11,057 4,131
35 to 39 years 10,286 9,997 1,315
30 to 34 years 8,976 9,171 4,202
25 to 29 years 8,419 8,659 3,164
20 to 24 years 10,090 10,329 1,707
15 to 19 years 11,020 11,384 103
10 to 14 years 9,881 10,370 802
5 to 9 years 9,747 10,250 396
Under 5 years 8,377 9,063 2,533
15.0 10.0 5.0 0.0 5.0 10.0 15.0 -5.0 0.0 5.0 10.0 -2.0% 0.0% 2.0% 4.0%
Thousands of People Thousands of People Thousands of People
Male Female Change 1990-2000 Change in Share
Source: Census 2000 and Census 1990
Page 4 Demographic, Employment and Income Trends

9. Erie County, Pennsylvania Income Distribution & Housing
(From EPSC)
Income Distribution - Household Income Distribution (Not adjusted for inflation)
Households
Less than $10,000 16,948
10,749
• In 1999, for every
household that made over $10,000 to $14,999 10,468
8,442
$100K, there were 6.4 $15,000 to $19,999 10,019
7,926
households that made
$20,000 to $24,999 9,936
under $30K. 10 years 8,381
earlier, for every household $25,000 to $29,999 9,408
8,077
that made over $100K, 9,120
there were 24.7 households $30,000 to $34,999 7,253
that made under $30K. $35,000 to $39,999 7,575
7,014
$40,000 to $44,999 6,382
6,873
5,079
• Please note that the
income distribution is not
$45,000 to $49,999 5,818
$50,000 to $59,999 6,814
adjusted for inflation so 9,768
$60,000 to $74,999 5,006
some of the changes are 10,661
due to inflation. $75,000 to $99,999 2,602 1989
8,665
$100,000 to $124,999 914 1999
3,252
$125,000 to $149,999 443
1,308
$150,000 or more 938
2,301
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0
Thousands of Households
Housing Affordability - Owner Occupied
• The housing affordability Owner Occupied Housing Affordability 1990 2000
index is 186, which
suggests that the median
Specified owner-occ. housing units: Median value (2000 $'s) $ 70,619 $ 85,300
family can afford the
median house. * % of median income necessary to buy the median house 14% 13%
Income required to qualify for the median house $ 23,818 $ 24,103
• Housing has become more
affordable in the last
Housing Affordability Index: (100 or above means that the median
family can afford the median house.)* 178 186
decade, from 178 in 1990
Universe: Specified owner-occupied housing units Census SF3 - H76
to 186 in 2000.
Income in: 1989 1999
Per capita income $ 17,932
Median household income (Adj. for Inflation in 2000 $) $ 35,021 $ 36,627
Median family income (Adj.for Inflation in 2000 $) $ 42,352 $ 44,829
Universe: Total population, Households, Families Census SF3 - P82,P53,P77
* Note: The housing affordability figures assume a 20% down payment and that no more than 25%
of a family's income goes to paying the mortgage. It is based on an interest rate of 10.01% in 1990
and 8.03% in 2000. Use this statistic as a comparative, rather than absolute, measure.
Source: Census 2000 and Census 1990
Demographic, Employment and Income Trends Page 5

10. Erie County, Pennsylvania Employment
Long term trend
180.0
165,688
160.0
• From 1970 to 2006, 48,278 new 140.0
Thousands of Jobs
jobs were created.
120.0
100.0
80.0
• From 1970 to 2006, the majority of
job growth, 75% of new jobs, was in 60.0
wage and salary employment
40.0
(people who work for someone
else). 20.0
-
0.0
70
73
76
79
82
85
88
91
94
97
00
03
06
19
19
19
19
19
19
19
19
19
19
20
20
20
• Wage and salary employment 160.0
(people who work for someone 140.0 138,901
else) contributed 75% of new
Thousands of Jobs
employment from 1970 to 2006, 120.0
and 62% of new employment since 100.0
1995. 80.0
60.0
40.0
• In 1970, proprietors represented 20.0
26,787
12.6% of total employment; by
0.0
2006, they represented 16.2%.
70
73
76
79
82
85
88
91
94
97
00
03
06
19
19
19
19
19
19
19
19
19
19
20
20
20
Wage and salary jobs Number of proprietors
Wages and Salaries vs. Proprietors
Changes from 1970 to 2006
% of New % of
New New Employm New
% of % of Employme Employm ent (95- Employ
1970 Total 1995 2006 Total nt (70-06) ent 06) ment
Total full-time and part-time employment 117,410 154,222 165,688 48,278 11,466 100.0%
Wage and salary jobs 102,644 87.4% 131,832 138,901 83.8% 36,257 75.1% 7,069 61.7%
Number of proprietors 14,766 12.6% 22,390 26,787 16.2% 12,021 24.9% 4,397 38.3%
Number of nonfarm proprietors 5/ 12,793 10.9% 20,850 25,299 15.3% 12,506 25.9% 4,449 38.8%
Number of farm proprietors 1,973 1.7% 1,540 1,488 0.9% -485 NA -52 NA
Proprietors include sole proprietorships, partnerships, and tax-exempt cooperatives. A sole proprietorship is an unincorporated business
owned by a person. A partnership is an unincorporated business association of two or more partners. A tax-exempt cooperative is a
nonprofit business organization that is collectively owned by its members.
Wage and salary employment refers to employees.
Source: BEA REIS 2006 Table CA30
Page 6 Demographic, Employment and Income Trends

11. Erie County, Pennsylvania Employment
How well do we recover from recessions?
• In the latest recovery
(2001 to 2006),
Employment During Recent Recoveries -
Annualized % Change from Trough to Following Peak
employment growth in the 4.0%
United States (up 1.3%) 2.9%
has outpaced 3.0% 2.5%
Pennsylvania and Erie
1.8% 1.9%
County, Pennsylvania. 2.0% 1.6%
Annual % Change
1.2% 1.3%
1.1%
• Similarly, in the last 0.9% 0.9% 0.9%
1.0% 0.5% 0.5%
recovery (1991 to 2001),
the United States (up
0.0%
1.9%) grew the fastest.
-1.0% -0.6%
• In the recovery from 1982 -2.0%
-2.1%
to 1990, the United States
(up 2.5%) grew the -3.0%
fastest. Erie County, Pennsylvania - Employment1982 to 1990 1991 to 2001 2001 to 2006
1975 to 1980 1980 to 1981 Pennsylvania - Employment
United States - Employment
Job Growth Compared to the State and the Nation
• Over the last 36 years
population growth in Erie
Jobs Compared to the State and the Nation
250
County, Pennsylvania has
been faster than
Pennsylvania and slower
200 195
than the nation.
Jobs (Index 1970=100)
• Some areas can
experience employment 150
141
140
gains even during
recessions. If so, check
to see how much is due to 100
migration and population
changes.
50
-
0
70
72
74
76
78
80
82
84
86
88
90
92
94
96
98
00
02
04
06
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
20
20
20
National Recessions Erie County, Pennsylvania
Pennsylvania United States
Source: BEA REIS 2006 Table CA30
Demographic, Employment and Income Trends Page 7

12. Erie County, Pennsylvania Personal Income
Long term trend
Total Personal Income
• From 1970 to 2006, personalin 9.0
Income (Billions of 2006 $)
income added $2,730 million
real terms. 8.0 8,046
7.0
6.0
• The annualized growth rate was
1.2%. 5.0
4.0
3.0
2.0
1.0 -
0.0
70
73
76
79
82
85
88
91
94
97
00
03
06
19
19
19
19
19
19
19
19
19
19
20
20
20
Importance of Proprietors
5.0
Income (Billions of 2006 $)
• In the last 36 years, wage and
salary disbursements grew at an
4.5 4,526
4.0
annual rate of 0.6%, outpacing 3.5
proprietors' income which was 3.0
roughly unchanged. 2.5
2.0
1.5
1.0
0.5 434
0.0
70
73
76
79
82
85
88
91
94
97
00
03
06
19
19
19
19
19
19
19
19
19
19
20
20
20
Wage and salary disbursements Proprietors' income
Wages and Salaries vs. Proprietors
1970 1995 2006 New % of
% of % of % of Income New
All income in millions of 2006 dollars 1970 Labor 1995 Labor 2006 Labor 70-06 Income
Labor Sources 4,167 100% 4,972 100% 5,156 100% 989 100.0%
Wage and salary disbursements 3,632 87% 4,300 86% 4,526 88% 894 90.4%
Proprietors' income 485 12% 553 11% 434 8% (51) NA
Nonfarm proprietors' income 456 11% 548 11% 432 8% (24) NA
Farm proprietors' income 29 1% 5 0% 2 0% (27) NA
Wage and salary is monetary remuneration of employees, including employee contributions to certain deferred compensation programs,
such as 401(K) plans.
Proprietors' income includes income from sole proprietorships, partnerships and tax-exempt cooperatives. A sole proprietorship is an
unincorporated business owned by a person. A partnership is an unincorporated business association of two or more partners. A tax-
exempt cooperative is a nonprofit business organization that is collectively owned by its members.
Source: BEA REIS 2006 Table CA05N and CA30
Page 8 Demographic, Employment and Income Trends

13. Erie County, Pennsylvania Proprietors
Definitions:
“Proprietors” refers to employment and income from sole proprietorships, partnerships, and tax-exempt cooperatives.
“Wage and salary” refers to employees; people who work for someone else.
Are proprietors an important indicator of economic health?
Growth of proprietor employment and income can be a healthy sign that opportunities for entrepreneurship exist. Another way to gauge
the health of small business growth is to look at changes in businesses by type and size of establishment (pages 16-18).
Growth of proprietors can also mean that a rising number of people in the community want to (or need to) have side jobs in addition to
their wage and salary jobs. When this is the case, earnings from second jobs can pull down average wages. To see if this is a sign of
stress, look for other potential stress indictors in this profile: unemployment rates over time and changes in earnings per job.
Proprietors' Share of Total (Income vs. Employment)
18%
• In 2006, proprietors' share of total
employment (16%) was higher 16% 16%
than proprietors' share of total 14%
income (5%) .
Share of Total
12%
• From 1970 to 2006, proprietors'
income share of total fell by
10%
8%
40.9%, while proprietors'
employment share of total grew 6% 5%
by 28.6%. 4%
2%
0%
70
73
76
79
82
85
88
91
94
97
00
03
06
19
19
19
19
19
19
19
19
19
19
20
20
20
How are Proprietors Doing?
Employment Income
• From 1970 to 2006, average
wage and salary disbursements
40.0
fell at an annualized rate of 0.2%
(adjusted for inflation), declining 35.0
slower than average nonfarm 32,582
Thousands of 2006 $
proprietors' income which fell by 30.0
2.0%.
25.0
• In 2006, average wage and
salary disbursements were
20.0
17,059
$32,582 (adjusted for inflation), 15.0
more than average nonfarm
10.0
proprietors' income ($17,059).
5.0
• In 1970, it was the other way
around. Average nonfarm
0.0
proprietors' income was $35,639
70
73
76
79
82
85
88
91
94
97
00
03
06
19
19
19
19
19
19
19
19
19
19
20
20
20
(adjusted for inflation), more than
average wage and salary
disbursements ($35,384).
Average wage and salary disbursements
• If these shares vary widely, it
suggests that proprietors and
Average nonfarm proprietors' income
wage earners have different
earnings.
Source: BEA REIS 2006 Table CA30
Demographic, Employment and Income Trends Page 9

14. Erie County, Pennsylvania Non-labor Income
The term "Non-Labor Income" is also referred to by some economists as "Non-Earnings Income". It consists of:
• Dividends, Interest and Rent (collectively often referred to as money earned from investments).
• Transfer Payments (payments from governments to individuals such as Medicare, Social Security, unemployment compensation,
disability insurance payments and welfare). See the next page for a breakout of transfer payments.
Non-labor Income Share of Total Income
40%
36%
• In the last 36 years, non-
labor sources grew at an
35%
annual rate of 2.6%,
30%
outpacing labor sources
Percent of Total Income
which grew at a 0.6% rate.
25%
• 35.9% of total personal
income in 2006 was from
20%
non-labor sources.
15%
10%
• 63.8% of new income
from 1970 to 2006 was
from non-labor sources. 5%
0%
70
73
76
79
82
85
88
91
94
97
00
03
06
19
19
19
19
19
19
19
19
19
19
20
20
20
Non-labor income under estimates retirement income because it does not include pensions (401Ks).
Labor vs. Non-Labor
1970 1995 2006 New % of % Chg % Chg
% of % of % of Income New Ann. Rate Ann. Rate
All income in millions of 2006
dollars 1970 Total 1995 Total 2006 Total 70-06 Income 70-06 95-06
Total Personal Income 5,316 100% 7,585 100% 8,046 100% 2,730 100.0% 1.2% 0.5%
Labor Sources 4,167 78% 4,972 66% 5,156 64% 989 36.2% 0.6% 0.3%
Non-Labor Sources 1,149 22% 2,613 34% 2,889 36% 1,740 63.8% 2.6% 0.9%
Dividends, interest, and rent 630 12% 1,277 17% 1,122 14% 492 18.0% 1.6% -1.2%
Personal current transfer receipts 519 10% 1,336 18% 1,767 22% 1,249 45.7% 3.5% 2.6%
Percentages do not add to 100 because of adjustments made by BEA, such as residence, social security, and others.
Source: BEA REIS 2006 Table CA30
Page 10 Demographic, Employment and Income Trends

15. Erie County, Pennsylvania Transfer Payments
Components of Transfer Payments
New % of
% of % of Payments New
Total Total 1970 to Pay- Change in Share of
All figures in millions of 2006 dollars 1970 TP 2006 TP 2006 ments Total (1970 - 2006)
Total transfer payments 519.0 1,767.5 1,248.5
Government payments to individuals 464.4 89% 1,703.7 96% 1,239.3 99.3%
Retirement & disab. insurance benefit payments 255.3 49% 649.9 37% 394.6 31.6%
Medical payments 62.6 12% 775.7 44% 713.1 57.1%
Income maintenance benefit payments ("welfare") 73.3 14% 178.5 10% 105.2 8.4%
Unemployment insurance benefit payments 21.7 4% 48.0 3% 26.4 2.1%
Veterans benefit payments 49.5 10% 31.7 2% (17.8) NA
Federal educ. & trng. asst. pay. (excl. vets) 2.0 0.4% 19.3 1.1% 17.3 1.4%
Other payments to individuals 0.1 0.0% 0.5 0.0% 0.4 0.0%
Payments to nonprofit institutions * 40.1 8% 50.2 3% 10.2 0.8%
Business payments to individuals 14.5 3% 13.5 1% (1.0) NA
-50% 0% 50%
Age-related (Retirement, Disability & Medicare) 266.0 51% 1,031.2 58% 765.2 61.3%
Trends in Non-Labor Income by Type
• The largestIncome are from
Non-Labor
components of
Trends in Non Labor Income
Dividends, Interest & Rent 1,600.0
(i.e., money earned from past
1,400.0
investments).
1,200.0
Millions of 2006 $
1,122
1,031
1,000.0
• In 2006 welfare represented
10.1% of transfer payments, 800.0
and 2.2% of total personal
income. This is down from 600.0
1970 and down slightly from 400.0
1980.
200.0 179
0.0
70
73
76
79
82
85
88
91
94
97
00
03
06
Components of Transfer
19
19
19
19
19
19
19
19
19
19
20
20
20
Payments Dividends, Interest & Rent
Age-related (Retirement, Disability & Medicare)
• In 2006, 58% of Transfer
Payments were from age-
Income Maintenance (Welfare)
related sources (retirement,
disability, insurance
payments, and Medicare),
while 10.1% was from
welfare.
Source: BEA REIS 2006 Table CA35
Demographic, Employment and Income Trends Page 11