Monday, March 10, 2008

Income is not income

Money: A song written by Berry Gordy, first recorded by Barrett Strong, then a bit later by a British band called the Beatles.

But income is not income. If you check the results of the Census/ACS and BEA for similar time frames, you'll see two different definitions of income. The Census/ACS definition is MONEY income. BEA measures PERSONAL income.

Data Detective Lenny explains:
Money income is essentially gross cash received on a regular basis (inheritence, etc. are not included). So wages and salaries are measured before taxes are removed.

According to the BEA web site:


This includes such income as housing subsidies, Medicare/Medicaid payments to hospitals on behalf of individuals, etc. even though the individual does not personally see it. The idea is that this is money supporting individuals. So the BEA figures will be significantly different ($10k higher) then the Census Bureau's.

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