Adjustment for residence
The adjustment for residence is the net flow of the net labor earnings of interarea commuters. The state and county estimates of personal income are presented by the state and county of residence of the income recipients. However, the source data for most of the components of wage and salary disbursements, supplements to wages and salaries, and contributions for government social insurance are on a place-of-work basis. Consequently, a residence adjustment is made to convert the estimates based on these source data to a place-of-residence basis.