Proprietor Employment and Income Data

OVERVIEW

Proprietor Income (PI) is a component of Value Added (VA) and consists of payments received by self-employed individuals and unincorporated business owners. More specifically, it represents the current-production income of sole proprietorships, partnerships, and tax-exempt cooperatives. It includes the capital consumption allowance and is recorded on Federal Tax form 1040C. It excludes dividends, monetary interest received by nonfinancial business, and rental income received by persons not primarily engaged in the real estate business. 

Labor Income is the sum of Proprietor Income and Employee Compensation (wages and benefits). Labor Income reflects the combined cost of total payroll paid to employees (e.g. wages and salaries, benefits, payroll taxes) and payments received by self-employed individuals and/or unincorporated business owners across the defined economy. 

DATA SOURCES AND ESTIMATION METHODS

Data for Proprietor Income and Proprietor Employment come primarily from the Bureau of Economic Analysis's (BEA) Regional Economic Accounts (REA) data. This dataset is the most inclusive available and provides information on sectors such as agriculture, construction, and railroads not directly available through other data sources. It also provides information on self-employment and proprietor income. 

The major drawback to these data, however, is that they are only available at the 3-digit NAICS level for state and county income, and the 3-digit and 2-digit level for state and county employment and that the data is lagged a year. IMPLAN therefore uses Bureau of Labor Statistics (BLS) Census of Employment and Wages (CEW) data to project REA data to the current data year and disaggregate to a more detailed Industry Scheme.

The BEA REA data provide a means to estimate proprietor employment and income, allowing for completion of the IMPLAN labor income data. The information used in developing IMPLAN data in this section is the following:

  • 3-digit State level wage and salary income - SA7 tables
  • 3-digit State level wage and salary employment - SA27 tables
  • 3-digit State level employee compensation (wage and salary plus other labor income and benefits) - SA06 tables
  • 3-digit State level total income (wage and salary and self-employment) - SA05 tables
  • 3-digit State level total employment (wage and salary and self-employment) - SA25 tables
  • 3-digit County level total income (wage and salary and self-employment) - CA05 tables
  • 3-digit County level employee compensation (wage and salary plus other labor income and benefits) - CA06 tables
  • 2-digit County level total employment (wage and salary and self-employment) - CA25 tables
  • 6-digit disclosed CEW state and county employment and income data aggregated to the 3-digit NAICS, BEA sectoring scheme (used to project the REA data to the current data year).

BEA employment and income data are also subject to non-disclosure rules; therefore, estimates are made for non-disclosed values. 

RELATED ARTICLES

Employment and Labor Income Data Sources

Comparison of IMPLAN Source Data for Employment and Labor Income