Real income

Additional real income, If real wages aren’t rising, how is household income going up?


    A recent Economic Synopses additional real income examined whether this is true by looking at the link between real price-level adjusted income and population growth for the largest U.

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    Economist Maximiliano Dvorkin and Research Associate Asha Bharadwaj found that real income in the early s influenced population growth over the next few decades. Adjusting for Regional Price Levels To see if higher average real income was correlated with higher population growth, the authors first adjusted nominal income for cost of living differences across locations and over time.

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    Dvorkin and Bharadwaj then plotted average real income in against population growth over the period They noted that there seems to be a positive correlation between the two variables and cited the following examples: Seattle, Denver, Anchorage and San Diego had relatively higher real incomes in and high population growth. Detroit, Philadelphia and Pittsburgh had lower real incomes in and lower population growth.

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    The authors also pointed out some exceptions: Atlanta, Houston and Dallas all had low real incomes in but high population growth. For a figure showing real income and population growth across the largest U.

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