Determinants of Median Income

Abstract

What essential differences account for the variation in median income across U.S. counties? This paper proposes a linear model examining the effects of minimum-wage laws, educational attainment, labor market density, and innovation within each county’s median income. Each of these are found to have a significant, positive correlation with median income, suggesting that these factors should be taken into consideration by policymakers seeking to improve incomes for their counties.