Minnesotans' per capita income is over 13 percent higher than the national average
11/15/2017 12:00:00 PM
Minnesotans enjoy per capita income that is 13.3 percent higher than the national average.
According to U.S. Census Bureau figures, Minnesota’s workers had an aggregated income of $179.3 billion in 2015, which ranked 16th nationally, even though the state was 21st in population. Minnesota’s total income that year topped Arizona, Indiana, Tennessee, Missouri and Wisconsin – all states with more residents than Minnesota.
So why do Minnesotans on average make $3,826 more in annual income than the typical U.S. worker?
Part of the answer may lie in income sources. Wages and salaries accounted for 77 percent of Minnesotans’ income in 2015, followed by Social Security income; investment, dividends and net rental income; self-employment income; and retirement income.
Meanwhile, wages and salaries accounted for 74.3 percent of household income nationally. Social Security income; interest, dividend or net rental income; and retirement income accounted for a larger share of income nationally than in Minnesota.
Minnesota ranks seventh nationally when it comes to percentage of income generated from wages and salaries. It finishes much lower in other income categories: Social Security (35th), interest, dividends or net rental (32nd), self-employment (24th), retirement (48th) and other types of income (38th).
Household income is a good tool for understanding how the Minnesota economy works and how well it performs in comparison with other states.
Read more in the latest issue of Trends magazine.