WHY IS THIS IMPORTANT?
Per capita income is an important measure of the overall economic health of the community and the financial resources of individual households. High per capita income increases a region’s ability to attract and retain a highly skilled workforce.[i] Per capita income is a major factor in a community’s standard of living and is regularly used as a quality-of-life indicator.[ii] Regions with high per capita incomes tend to have more educational, recreational, and entertainment opportunities. When measured across disparate populations, however, per capita income can also be used to measure inequity.
[i] C. Berry and E. Glaeser, “The Divergence of Human Capital Levels across Cities,” Regional Science 84, no. 3 (2005): 407-444.
[ii] K. Schuessler and G. Fisher, “Quality of Life Research and Sociology,” Annual Review of Sociology 11 (1985): 129-149.