Using an Expanded Demographic-Economic Accounting Matrix to Project Income Distribution in Southern California

Simon Choi, Southern California Association of Governments

The purpose of this study is to develop a projection model reflecting a linkage of population, employment, and income distribution. The new projection model will help to measure the effects of changing population and employment on income distribution. With recent and expected trends in demographic characteristics (aging, ethnic diversification, immigrants with different time of arrival), employment structure (more share of service jobs), and income distribution (more inequality of income), the newly developed projection model is expected to discuss the following questions:1) What are effects of aging on income level/distribution?;2) What are effects of ethnic diversity on income level/distribution?; 3) What are effects of immigrants with different time of arrival on income level/distribution?.The study employs an economic-demographic model to link population and employment projections. The study uses the demographic-economic accounting matrix (DEAM). DEAM, based on the most recent census data base, to link demographic characteristics to employment sectors to income level/distribution.