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Personal Transfer Receipts Represent Significant Segment of N.D. Economy

Personal transfer receipts accounted for 15.1 percent of all personal income received by North Dakota residents in 2007, a proportion relatively unchanged since the late 1980s.

“We should expect this percentage to begin rising dramatically in the next few years as the baby boomer population begins entering retirement years,” says Richard Rathge, North Dakota State Data Center director. The center is at North Dakota State University. “From 2007 to 2020, we will see a 60 percent increase in those ages 65 and older in North Dakota.”

This month’s “Economic Brief,” a monthly publication from the State Data Center, focuses on current personal transfer receipts. These are payments by government and businesses for individuals and nonprofit institutions serving individuals.

North Dakotans received $3.47 billion in personal transfer receipts in 2007, a 6.2 percent increase from $3.27 billion in 2006.

The largest category of transfer receipts for North Dakota residents in 2007 consisted of retirement and disability insurance benefits ($1.439 billion), followed by medical benefits ($1.420 billion) and income maintenance benefits ($239 million).

The remaining $374 million in transfer payments to North Dakotans included unemployment insurance compensation, veterans’ benefits, federal education and training assistance, Bureau of Indian Affairs payments, disaster relief, and personal injury and educational assistance payments.

Personal transfer receipts as a proportion of total personal income varies from state to state. Nationally, personal transfer receipts were 14.7 percent of the total personal income in 2007.

Three states showed personal transfer receipts accounting for at least one-fifth of all personal income received by residents. The three are West Virginia, Mississippi and Arkansas (25.5 percent, 22 percent and 20.9 percent, respectively). Colorado had the smallest proportion of personal transfer receipts at 10 percent.


NDSU Agriculture Communication

Source:Richard Rathge, (701) 231-8621, richard.rathge@ndsu.edu
Editor:Rich Mattern, (701) 231-6136, richard.mattern@ndsu.edu

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