NONEMPLOYMENT INCOME AND THE ECONOMIC BASE OF MICHIGAN COUNTIES - 1959-1986

Despite the fact that nonemployment income makes up approximately one- third of all personal income, its impact on local area economies has n ot been closely examined. This study uses Michigan county data to exam ine the impact of nonemployment income on nonbasic income over a twent y-seven-year period. This impact is compared to the impact of basic in come by employing regression analysis to estimate comparative multipli er effects for both types of income. Nonemployment income is found to have a significant impact on nonbasic income, particularly in metropol itan and nonmetropolitan urban counties, where its impact appears to b e stronger than that of basic income.