Per Capita Income
Definition
Total personal income divided by total population. It represents the average income earned per person, including everyone (children, retirees, unemployed) — not just workers.
Why It Matters
Per capita income is used to compare economic output between states and countries. It helps businesses assess market purchasing power and is used by the federal government to allocate certain grants.
How It's Measured
Calculated by dividing aggregate personal income by total population. Includes wages, investment income, government transfers, and business income.
Related Ranking
View ranking →Related Terms
Frequently Asked Questions
Total personal income divided by total population. It represents the average income earned per person, including everyone (children, retirees, unemployed) — not just workers.
Per capita income is used to compare economic output between states and countries. It helps businesses assess market purchasing power and is used by the federal government to allocate certain grants.
Calculated by dividing aggregate personal income by total population. Includes wages, investment income, government transfers, and business income.