Individual Income by ZIP Code Area, 1979 and 1982 By Bob Kalish and H. Lock Oh* ZIP Code area statistics based on individual i ncome tax returns for 1982 continued to confirm the shift in economic activity from the so-called "snow belt" to the "sun belt." This shift was previously observed in the ZIP Code data for 1979. The data also reflect the trend away from the large industrial, commercial and financial centers of nationwide significance, to smaller urban areas [I]. There appear to be other major factors at work as well, such as the emergence of new population centers in the 1970's and early 1980's located in areas associated with energy-related resources, such as oil or gas. Other new population centers reflect the general move to the South and West, with sharp increases in returns filed and income reported for cities situated in recreation or resort areas as well as in areas long popular with retired i ndi vi dual s. In addition to the effects of regional migration, one can also see evidence of the continuing movement, especially of higher income taxpayers, from center city ZIP Code areas to surrounding suburbs [2]. In the previous article covering Tax Years 1969 and 1979 [1], it was observed that often areas which had a reduction in number of tax return filers had an increase in median income, while the areas on the receiving end of this migration had a reduction in median income. The data appeared to indicate that the less affluent (including, in many cases, retirees) accounted for more migration than the higher-income taxpayers. However, this was not observed in comparing 1979 to 1982. It is too soon to tell whether a new trend is beginning. Suburbs continued to grow faster than urban centers, but this tendency may be lessening. In two major urban centers of the Northeast, New York City and Boston, the growth rates of city and suburbs were about the same from 1979 to 1982 [3]. The three-digit ZIP Code areas with the largest and smallest median incomes for 1982 are shown in Figure A [4,51. Figure B shows the most rapidly growing areas, based on rate of increase in returns filed and in median adjusted gross income (AGI). In most cases, the names used to describe the areas are those developed by the U.S. Postal Service, although a few liberties have been taken in describing the areas in order to clarify their location. It should be noted that the rankings in Figure B that involve ZIP Code areas with small numbers of taxpayers may be affected by sampling error for 1979. The effects of sampling variability on the 1979 ZIP Code data are discussed at the end of this article. Nearly 12,000 returns were filed for area "202-205," a ZIP Code number applicable to Federal Government facilities in Washington, DC. The effect on ZIP Code data of individual taxpayers who used a business address (or the address of a lawyer or accountant), o ' r who used a post office box in a community other than the one they lived in, is not known for other areas of the country, although it is an obvious limitation, especially for large urban areas. This should be kept in mind, for example, when using the ZIP Code area data for Manhattan (code 100) in New York City [6]. CONCEPTUAL AND DATA LIMITATIONS The remainder of this article discusses conceptual and data limitations that should be taken into account in analyzing the ZIP Code area statistics in Table 1. Included are conceptual concerns surrounding the ZIP Code area as a geographical entity, the definitions of income and the tax return reporting unit, the effects of tax law changes and, finally, sampling and interpolation error. Conceptual Limitations The ZIP Code area is a comparatively new geographic reporting unit overlapping political boundaries, such as those of counties, that normally serve as the basis for most local area statistics. There are 837 three-digit ZIP Code areas, each of which represents a postal 11sectional center" or lizoned ci ty" [7]. *Individual Special Projects Section and Coordination and Publications Staff, respectively. Prepared under the direction of Peter J. Sailer, Chief and Lillie B. Dorsey, Chief. I
27
Embed
Individual Income by ZIP Code Area, and - Internal … · Individual Income by ZIP Code Area, ... The effect on ZIP Code data of individual ... San Francisco suburbs, California 22,670
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Individual Income by ZIP Code Area,1979 and 1982By Bob Kalish and H. Lock Oh*
ZIP Code area statistics based on individuali ncome tax returns for 1982 continued toconfirm the shift in economic activity from theso-called "snow belt" to the "sun belt." Thisshift was previously observed in the ZIP Codedata for 1979. The data also reflect the trendaway from the large industrial, commercial andfinancial centers of nationwide significance,to smaller urban areas [I].
There appear to be other major factors atwork as well, such as the emergence of newpopulation centers in the 1970's and early1980's located in areas associated withenergy-related resources, such as oil or gas.Other new population centers reflect thegeneral move to the South and West, with sharpincreases in returns filed and income reportedfor cities situated in recreation or resortareas as well as in areas long popular withretired i ndi vi dual s. In addition to theeffects of regional migration, one can also seeevidence of the continuing movement, especiallyof higher income taxpayers, from center cityZIP Code areas to surrounding suburbs [2].
In the previous article covering Tax Years1969 and 1979 [1], it was observed that oftenareas which had a reduction in number of taxreturn filers had an increase in median income,while the areas on the receiving end of thismigration had a reduction in median income.The data appeared to indicate that the lessaffluent (including, in many cases, retirees)accounted for more migration than thehigher-income taxpayers. However, this was notobserved in comparing 1979 to 1982. It is toosoon to tell whether a new trend is beginning.
Suburbs continued to grow faster than urbancenters, but this tendency may be lessening.In two major urban centers of the Northeast,New York City and Boston, the growth rates ofcity and suburbs were about the same from 1979to 1982 [3].
The three-digit ZIP Code areas with thelargest and smallest median incomes for 1982are shown in Figure A [4,51. Figure B shows
the most rapidly growing areas, based on rateof increase in returns filed and in medianadjusted gross income (AGI). In most cases,the names used to describe the areas are thosedeveloped by the U.S. Postal Service, althougha few liberties have been taken in describingthe areas in order to clarify their location.It should be noted that the rankings in FigureB that involve ZIP Code areas with smallnumbers of taxpayers may be affected bysampling error for 1979. The effects ofsampling variability on the 1979 ZIP Code dataare discussed at the end of this article.
Nearly 12,000 returns were filed for area"202-205," a ZIP Code number applicable toFederal Government facilities in Washington,DC. The effect on ZIP Code data of individualtaxpayers who used a business address (or theaddress of a lawyer or accountant), o
'r who used
a post office box in a community other than theone they lived in, is not known for other areasof the country, although it is an obviouslimitation, especially for large urban areas.This should be kept in mind, for example, whenusing the ZIP Code area data for Manhattan(code 100) in New York City [6].
CONCEPTUAL AND DATA LIMITATIONS
The remainder of this article discussesconceptual and data limitations that should betaken into account in analyzing the ZIP Codearea statistics in Table 1. Included areconceptual concerns surrounding the ZIP Codearea as a geographical entity, the definitionsof income and the tax return reporting unit,the effects of tax law changes and, finally,sampling and interpolation error.
Conceptual Limitations
The ZIP Code area is a comparatively newgeographic reporting unit overlapping politicalboundaries, such as those of counties, thatnormally serve as the basis for most local areastatistics. There are 837 three-digit ZIP Codeareas, each of which represents a postal11sectional center" or lizoned ci ty" [7].
*Individual Special Projects Section and Coordination and PublicationsStaff, respectively. Prepared under the direction of Peter J. Sailer,Chief and Lillie B. Dorsey, Chief. I
Ranking of Highest Income Areas Based on Median AGI, 1982
Figure A
1982Ranking ZIP Code Area 3-Digit Code
20
Virginia4 Summit area, New Jersey 079 21,1575 Gillette area, Wyoming 827 20,9476 Hicksville (City) area, 118 20,904
10 Chicago South Suburban 605 79,911(western) area, Illinois
11 Conroe area, Texas 773 19,90212 Provo eastern area, Utah 845 19,82513 Long Island Terminal suburbs, ITO 19,782
New York14 San Mateo (City), California 944 19,77015 Dover area, New Jersey 078 19,75416 Juneau area, Alaska 998 19,64017 Oakland suburbs, California 945 79,60618 Paterson suburbs, New Jersey 074 T9,59019 Denver norther n
suburbs, 800 19,579
Individual Income by ZIP Code Area
Median AGI
1982 T979
(expressed in1982 dollars)
Rock Springs eastern area, 829 $23,230 $22,044IWyoming
2 Denver southern suburbs, Sol 22,244 22,105
Colorado3 Northern Virginia area, 220-221 21,882 22,735
ColoradoSan Francisco suburbs,California
22,67020,3482T,753
22,343
19,77421,4582T,447
20,96118,59520,347
19,99819,95520,69820,10920,25318,950
940 19,561 T9,025
NOTE: Excluded from the Towest income areas above arepersonnel with San Francisco (APO-FPO) ZIP Codes.
overseas military
Figure B
Ranking of Highest Growth Areas Based on Percentage Rate of Increase in Returns Filed, 1982
1982 Number of Percent increase
Ranking ZIP Code Area 3-Diqit Code returns 1982 over 1979
1 Conroe area, Texas 773 150,053 25.7%2 Clinton area, Oklahoma 736 28,165 23.03 Gillette a rea, Wyoming 827 18,952 20.1
20 Rock Springs eastern area, Wyoming 829 23,230 5.4
I
I
NOTE: Excluded from the tables above are overseas military personnel with Seattle and NewYork City (APO or FPO) ZIP Codes and Maryland suburbs. (see text section on conceptuallimitations)
Individual Income by ZIP Code Area
Sectional centers are identified by the name ofthe "hub" city in which mail is sorted fordistribution to peripheral postal outlets whichare, in turn, identified by the fourth and
fifth digits of the ZIP Code. Zoned cityboundaries generally coincide with those of the
larger communities or cities.
Although its primary purpose is to meet thespecific needs of the U.S. Postal Service, theZIP Code area is not without economicsignificance. The three-digit areas, the nextlargest unit below the state, are set up tofacilitate the movement of mail transportationpatterns and, thus, patterns of commerce.Therefore, as economic units, they often may beequated with marketing or commuting areas. Ina sense, the three-digit area may be thought ofas an alternative to the county as a reportingunit for economic analysis.
ZIP Code areas obviously have limitationswhen used for this purpose. In contrast tocounties, only limited data are currentlyavailable by ZIP Code area [8]. Moreover,because their boundaries may change, whathistorical data there are by ZIP Code may bedifficult to compare [9]. Also, ZIP Codeboundaries, parti c ul arly at the three-digitlevel, while significant for measuring sometrends, can obscure others. For example, until1981, Maryland suburbs were included in the
same Washington, DC, ZIP Code areas asWashington itself. Thus, ZIP Code data forWashington for 1979 and 1982 are not comparable.
Summarized below are the number of
three-digit ZIP Code areas whose boundaries
were changed between 1979 and 1982. About Ipercent of the areas were affected. While
former boundaries can be generallyreconstructed by a regrouping of the unaerlyingfive-digit areas, no attempt was made to do so
for this article.
Total areas 837Areas increased in size 4Areas decreased in size 3Areas unchanged 830
The definitions that precede Table I include alist of areas and their number as well as anindication of comparability, 1979 versus 1982,based on boundary changes.
Historical comparisons based on Statistics ofIncome (SOI) ZIP Code data are difficult tomake. Because the data are based on taxreturns, those at the lower end of the incomescale are affected by changes in the incomecutoffs that are part of the filingrequirement. For both 1979 and 1982 the filingrequirement set forth income cutoffs thatranged from $1,000 to $7,400, depending on age,marital status and type of return. Since thesefiling requirements were based on currentdollars, it is possible that some taxpayers who
experienced no increase in income in terms ofconstant dollars were brought under the taxsystem simply through the process of inflation.
Figure C shows the changes in median incomefrom 1979 to 1982 in constant dollars. In thefirst column, the 837 3-digit ZIP Code areasare broken into three groups of 279 each, basedon the median income of these areas in 1979.On the top line of the table, the 837 areas arebroken into three different groups (also of 279each), based on the rate of growth of theirmedian incomes between 1979 and 1982. Thetable shows that 109 of the 279 areas with thelowest incomes in 1979 experienced high incomegrowth rates based on the 1982 results. On theother hand, only 62 of the 279 areas with thehighest incomes in 1979 were in the top incomegrowth rate tercile for 1982. Obviously, it isharder to attain high growth rates when themedian income is already very high.Nonetheless, the data appear to indicate thatthe relative positions of some of the 837areas, when arrayed by size of median income,have changed.
All of the SOI data are based on thetax-defined concept of income, i.e., AGI, andthis means that certain Kinds of income areexcluded either wholly or in part. The effectof these exclusions may be compounded bydefinitional differences based on tax lawchanges. For the majority of taxpayers, theremay well be little or no difference betweentotal economic income and AGI, but the two tendto diverge as income increases. Thus, towardthe upper end of the income scale, interest onstate and local Government obligations and theexcluded portion of capital gai ns becomeimportant; neither is included in AGI. Inaddition, certain amounts are deductible inarriving at AGI and therefore are alsoexcluded. Examples are trade and businessexpenses as well as certain employee expensesassociated with a business or job, plus alimonypaid, losses from sales of certain property, apart of dividend income, and contributions toself-employed retirement plans or to individualretirement arrangements. Moreover, for taxpurposes, certain deductions have specialmeanings that differ from their normalaccounting counterparts. Depreciation anddepletion are but two examples of this. At thelower end of the income scale, the exclusion ofsocial security, cash public assi stance andin-kind transfer payments of various sorts mayalso understate income [101.
It should be noted that three major tax lawchanges affected the computation of AGI in1982, relative to 1979. First, eligibility toparticipate in individual retirement
arrangements was expanded to include all
employees, even those covered byemployer-sponsored plans. Second, two-earnercouples became eligible for the "deduction for
4 Individual Income by ZIP Code Area
Figure C.--Number of ZIP Code Areas by Median Income Tercile and by Rate of Change Tercile
Median incometercile, 1982 All ZIP Code areas
Rate of change tercile, 19
Medium increaseLargest increase
(1)
Total ..........
Highest tercile
Medium tercile
Lowest tercile ...
837
279
279
279
working married couples" of up to $1 500.Thi rd, the maximum excludable unemploymentcompensation
'was decreased from $20,000
($25-,000 on joint returns) to $12,000 ($18,000on.joint returns).
If AGI is an unusual income concept, the taxreturn itself is an unusual "reporting unit."Just as the ZIP Code area is designed to meetpostal needs, the IRS reporting unit isdesigned for tax administration purposes. itis therefore synonymous neither with the"individual" nor with the "family," and isactually a hybrid of the two [111.
Data Sources and Limitations
ZIP Code data on income have been tabulatedonly infrequently. for the SOI program [12,131. The most recent tabulations, shown inthis article, are for 1979 and 1982. Becausethe data sources and basic tabulations differedfor these two years, it was necessary to make avariety of statistical adjustments to the datain order to facilitate comparisons. Those whowish to use these data for analytical purposesshould do so with care, and should be aware ofthe nature of the adjustments made to the rawdata.
The ZIP Code data in this article were basedon several . sources. In particular, the 1979data were derived primarily from a tabulationof a systematic 10-percent sample of the returnrecords of all taxpayers on the InternalRevenue Service (IRS) Individual Master File(IMF), supplemented by previously published1979 information from the SOI sample for thatyear [141. The 1982 Income Year inforinationwas obtained from complete counts taken fromthe IMF through the end of September 1983; thereturn records were not subjected to samplingas they were for 1979.
(2)
279
99
119
61
There are a number of data limitations thatmust be considered. The 1979 data are subjectto sampling error. On the other hand, the 1982
(3)
279
109
64
106
79 to 1982
Lowest or.no increase
, (4)
.279
71
96
112
data were not ratio-adjusted, as. they were for1979, to conform with published totals in theregular Statistics of Income report. The 1979data were adjusted to represent the full year'sfiling and processing; the 1982 data were not.Therefore, the statistics for 1982 actuallyrepresent about 9 month's of returns filed (andprocessed). (Returns processed between Octoberand the end of the year represent about 3percent of all returns and 4 percent of totaladjusted gross income; a disproportionatenumber of those returns are returns of higherincome individuals). The 1982 statistics areunderstated as a result.
The 1979 ZIP Code area data were obtained ina tnree-step process. First, tabulations wereproduced , from a 10-percent systematic randomsample of the IMF tax return records. Forpurposes of computing median AGI, thesetabulations were by three-digit ZIP Code areaand counted the number of returns in five AGIsize classes (Under $1, $1 under $10,000,$10,000 under $20,000, $20,000 under $30,000,$30,000 under $50,000, and $50,000 or more).Special ZIP Code tabulations by state were thenadjusted to agree with already published statetotals taken from the regular annual SOIseries. This step" was taken to improveconsistency (even though the definedpopulations, SOI versus the Master File, werenot exactly the same).
Once the 1979 adjusted tabulations wereproduced, median AGI was calculated using anosculatory interpolation method [151. Mediansdevised in this way are generally better thanthose obtained in the more customary manner ofsimple linear interpolation. Both linear andosculatory interpolation depend greatly,however, on the width of the size class inwhich the median falls. The wider the classinterval, the greater the potential error maybe. Moderate interpolation errors weretherefore to be expected, given that the medianclass was about $10,000 wide. For purposes ofthis article, all 1979 medians so derived wereconverted to 1982 dollars [4].
Individual Income by ZIP Code Area
The 1982 ZIP Code data were obtained in atwo-step process. Fi rst, tabulations wereproduced from complete totals of the IMF taxreturn records (for returns processed by IRSthrough September 1983). Then, osculatoryinterpolation was employed in calculatingmedian AGI for the 1982 distributions in amanner similar to that employed for 1979.(Since for the 1982 data, the median class wasagain about $10,000 wide, moderateinterpolation errors are again to be expected.)
Because the same interpolation methods wereused for 1979 and 1982, it is likely that thedifferences in the median for the two years'distributions would not be affected as much asthe levels estimated for each year are. Moreinformation on this issue is provided in apaper presented at the 1983 AmericanStatistical Association meetings [161.
The 1982 data were based on a 100-percentsample and thus there is no sampling error.For 1979, however, the data were based on a10-percent sample~ which was adjusted to the1979 state totals estimated by the SOI sample[1 21. Fi gure D presents approximatedcoefficients of variation (CV's) for frequencyestimates for 1979. The approximate CV's shownhere are intended only as a general indicationof the reliability of the data. (For numbersother than those shown below, the correspondingCV's can be estimated by interpolation.)
DEFINITIONS
For 1979 and 1982, the full ZIP Codeconsisted of f i ve-di gi ts. The first digitidentifies one of ten postal national serviceareas, each consisting of from three to sevenstates. The second digit identifies a state, a
5
portion of a large state, or two small states.The third digit identifies a portion of astate, known as a "sectional center" or "zonedci ty, " while the fourth and fifth digitspinpoint an individual post office facility andthe area it serves.
In Table 1, statistics are presented for eachthree-digit area, comprising sectional centersand zoned cities.
Sectional Centers.--A sectional centerconsists of a huF--city and surrounding townsand rural areas. Mail is sorted in thehub-city post office for distribution to postoffices in surrounding towns. Hub-cities,therefore, are chosen in such a way as to bethe natural transportation centers for thesectional centers. The most distant postoffice is to be no more than two to three hoursdriving time away from the hub-city.
Sectional centers are identified by the nameof the hub-city. Thus, "077 Red Bank"designates an area consisting of Red Bank, NewJersey, and surrounding towns. Sometimes asectional center is identified by more than onethree-digit code. For instance, code "210"identifies towns around Baltimore, Maryland,beginning with letters A through L, while code"211 " identifies towns in the Baltimoresectional center whose names begin with Mthrough Z. Since neither 210 nor 211identifies one contiguous area, they have beencombined in these tabulations.
There are also cases where more than onethree-digit code applies to a sectional centerand each three-digit code represents acontiguous area by itself. Thus, 301represents towns to the north of Atlanta,
Figure D.--Coefficients of Variation (Percent) For Estimated Numbers of Returns, Tax Year 1979
Returns by size of adjusted gross income1979 dollars
Under$10,000
(2)
16.2712.8612.039.717.756.685.974.503.04
N/A
$10,000to
$20,000
(3)
12.339.799.167.405.905.074.543.41
N/AN/A
$20,000to
$30,000
(4)
10.808.537.986.445.144.423.962.98
N/AN/A
$30,000to
$50,000
(5)
10.808.537.986.445.144.423.96
N/AN/AN/A
in
$50,000or
more
(6)
8.036.325.914.773.80
N/AN/AN/AN/AN/A
N/A - Not applicable.
6 Individual Income by ZIP Code Area
Georgia; 302, towns to the south of Atlanta.These areas are shown separately in thestatistics and designated as "301 Atlanta(North)" and "302 Atlanta (South),"respecti vely.
Sectional centers do not cross stateboundaries. There are some cases where a cityin one state serves as the naturaltransportation center for a portion of anotherstate. Thus, it is not unusual for a sectionalcenter to have a hub-city which lies in adifferent state. However, whenever onehub-:city serves two states, the sectionalcenters in each of the states are givenseparate numbers. Thus, Charlotte, NorthCarolina, serves as hub-city for sectionalcenter 280-281 (entirely within North Carolina)and. sectional center 297 (entirely within SouthCarolina).' The latter sectional center isdesignated "297 Charlotte, North Carolina,~(South Carolina offices)" for the statistics,and is shown as part of South Carolina.
Zoned Cities.--In addition to the sectionalcenters, some three-digit codes representsimply a city by itself. This is true of manyof the largest cities in the country, whichhave been designated as "zoned cities," i.e.,they have been divided up into individual maildelivery areas (zones), each served by its ownpost office facility.
It should be noted that the boundaries of thezoned cities, as identified by. the U.S. PostalService, are not always identical with thecities' political boundaries. As in the caseof sectional centers, the boundaries of thezoned cities were chosen to reflect economic,not political realities. Thus, the zoned cityof Baltimore includes those portions of AnneArundel, Baltimore, and Howard counties whichare economically integrated with the city.
Some zoned cities also serve as hub-citiesfor sectional centers. As a result, manysectional centers assume the shapes of ringssurrounding these large cities. For instance,the three-digit code 441 represents the zonedcity, of Cleveland, Ohio; the code 440represents the surrounding towns and ruralareas (i.e., the sectional center).
The zoned cities and sectional centers ofAtlanta, Georgia; Pittsburgh, Pennsylvania; andSpokane, Washington present a further variationon this principle. There is one code (in thecase of Spokane, it is 992) that represents thecentral city; a second code (990) representsthe "metro" which is defined as the immediatelysurrounding area; and a third code (991) whichrepresents the sectional center which is thearea surrounding the metro.
New York City is a special case in that it isrepresented by a total of eight three-digit
codes. The boroughs of Manhattan, Richmond,the Bronx, and Brooklyn are represented by ZIPCodes 100, 103, 104, and 112, respectively;ZIP Codes areas 111, 113, 114, and 116 are inthe borough of Queens.
In Tabl e I , wherever a three-digit coderepresents a city or metro, ! it is sodesignated. Thus, the heading "152 Pittsburgh(Metro)*" applies to the close-in suburbs; and150 Pittsburgh*" designates the surroundingsectional center. Whenever an asterisk isshown following the name of an area, itindicates that this is a "surrounding area;"the hub7city after which the area is named isnot included.
NOTES AND REFERENCES
See Wilson, Robert, and Oh, H. Lock,"Individual Income by ZIP Code Area, 1969and 1979," Statistics of Income Bulletin,Spring 1983.- o
[21 For a brief review of geographic patternsof filing individual income tax returns,see Blacksin, Jack and Plowden, Ray,"Statistics of Income for Individuals: AHistorical Perspective," 1981 Proceedings,American Statistical Association, Sectionon Statistical Uses of AdministrativeRecords.
[31 Population and migration estimates bycounty based on individual income, taxreturns are available from the 'InternalRevenue Service. The migration data showthe number of taxpayers whose county ofresidence (as indicated by the addressshown on thei r. tax returns) changedbetween 1 980 and 1982. AGI of migrantsand nonmigrants_ is also available bycounty. For additional information aboutpurchasing the - resul ts of this study,write to the Director, Statistics ofIncome Division, Internal Revenue Service,lill Constitution Avenue, N.W.,Washington, DC 20224.
[41 Constant dollars were based on thepersonal consumption (PCE) implicit pricedeflator (1972=100) calculated by theDepartment of Commerce, Bureau of EconomicAnalysis. The deflator was available onlyon a national level; regional or stateadjustment factors were not calculated.(Therefore, any evaluation of the varyingeffect of inflation on increases ordecreases in median income by state,region or ZIP Code area must be based onthe national deflation adjustment factor.)Since the index stood at 162.5 in 1979 and206.0 in 1982, the deflator for the 1979dollars was 0.7888 (162.5 divided by206.0). See U.S. Department of Commerce,Bureau of Economic Analysis, National
Individual Income by ZIP Code Area
Income and Product Accounts of the UnitedStates, 1929-76, Statistical Tables, U.S.-Government Printing Office, 1981, Table7.1, page 219 and the Survey of CurrentBusiness, July 1983, and July 1984,--Ta-ET-e7.1. For discussions of the deflator,see, e.g., the Survey of Current Business,March 1978, Vol. 57, No. 3, and h1979, Vol. 58, No. 11.
Some of the other factors that should betaken into account in comparing 1979 with1982 are the varying effects of inflationby geographic area which have an unknownimpact on median income in constantdollars. Also, data for the states ofCalifornia, Florida, New York, andWashington include overseas militarypersonnel because army and fleet postoffice addresses are located in thesestates.
[51 Table I shows both median income and meanincome for each tnree-digit ZIP Code for1982.
[61 See Childers, Danny R., and Hogan, Howard"Matching IRS Records to Census Records:Some Problems and Results" in Statisticsof Income and Rel ated AdmiWi~strati veRecord Research: 1984.
[71 There are actual ly mo re than 837three-digit ZIP Codes, but some have beenCombined.
[81 U.S. Department of the Treasury, InternalRevenue Service, Supplemental Reports,Statistics of Inco_m_e-__-T97T_ Smal I AreaData, Individual Income Tax Returns,Publication 1008, 1977, and SERI'stics ofIncome--1974, Small Area Data, IndividIncome Tax Returns, Publication 1008-1979. These reporf-s present tax returndata by county.
[91 Maps generally of three-digit ZIP Codeareas by state may be found in the 1982National ZIP Code and Post Offi`ceDirectory, U.S. Postal Service, 1981.Am-ong other sources, maps are alsopresented annually in the various Bellsystem-Yellow Pages.directories.
7
[101 Income in kind, such as food produced forhome consumption, is another factor thatmight be included as Ileconomic" incontrast to "taxable" income. Such incomeis likely to have a more noticeable effectat the lower end of the income scale.
[III in this context, see Irwin, Richard andHerri ot, Roger, "An Initial Look atPreparing Local Estimates of HouseholdSize from Income Tax Returns," 1982Proceedings, Ainerican Statisti`c~aAssociation, Section on ApplicatT3'nsFAdministrative Records Data.
[121 U.S. Department of the Treasury, InternalRevenue Service, Supplemental Report,Statistics of Income-7966, ZIP Code AreaData from Individual Income Tax Re-fu-rns,Publication 649, U.S. vernment P_r-5_y__f_ngOffice, 1969. This report also includesmaps generally at the three-digit le.velfor ZIP Codes as they were defined in 1966.
[131 U.S. Department of the Treasury, InternalRevenue Service, Supplemental Report,Statistics of Income-7969, ZIP Code AreaData from Individual income Tax Keturns,Publication 649, U.S. Government PrintingOffice, 1972. This report also includesmaps generally at the three-digit levelfor ZIP Codes as they were defined in 1969.
[141 U.S. Department of the Treasury, InternalRevenue Service, Statistics ofIncome--1979, Individual Income TaxReturns, Publication 79, U.S. Government-F-rinting Office, 1982.
[15] See Oh, H. Lock, "Osculatory Interpolationwith a Monotonocity Constraint, " 1977Proceedings, American Statisti-c-aTAssociation, Section on Sta ti-s-fi CaT.Lo~utin~.
[161 For further details on the methodsemployed, see Wilson, Robert A., "PostalZIP Code Area Statistics from InternalRevenue Records" in Statistics of Incomeand Related Adm-in-iResearch: 1983.
8 Individual Income by ZIP Code Area
Three-Digit ZIP Code Area Titles and Numbers by State Per Region
460 - Indianapolis (North)*461 - Indianapolis (South)*462 - Indianapolis (City)463 - Gary*464 - Gary (City)465 - South Bend*466 - South Bend (City)467 - Fort Wayne*468 - Fort Wayne (City)469 - Kokomo470 - Cincinnati, Ohio
(Wisconsin Offices)541 - Green Bay (West)*542 - Green Bay (East)*543 - Green Bay (City)544 - Wausau545 - Rhinelander546 - La Crosse547 - Eau Claire548 - Spooner549 - Oshkosh
MINNESOTA
550 - St. Paul*551 - St. Paul (City)553 - Minneapolis*554 - Minneapolis (City)556 - Duluth (East)*557 - Duluth (West)*558 - Duluth (City)559 - Rochester
560 - Mankato561 - Windom562 - Willmar563 - St. Cloud564 - Brainerd565 - Detroit Lakes566 - Bemidji567 - Thief River Falls
580 - Fargo*581 - Fargo (City)582 - Grand Forks583 - Devils Lake584 - Jamestown989 - Bismarck
D ckinson587 - Minot588 - Williston
MONTANA
590 - Billings*591 - Billings (City)592 - Wolf Point593 - Miles City594 - Great Falls595 - Havre596 Helena597 Butte598 Missoula599 Kalispell
POSTAL NATIONAL SERVICE 6
ILLINOIS
600 - Chicago NorthSuburban (East)*
601 - Chicago NorthSuburban (West)*
602 - Evanston (City)603 - Oak Park (City)604 - Chicago South Suburban (East)*605 Chicago Sourth Suburban (West)*606 Chicago (City)609 Kankakee610 Rockford*611 Rockford (City)612 Rock Island613 LaSalle614 Galesburg615 Peoria*616 Peoria (City)617 Bloomington618 Champaign (North)619 Champaign (South)620 - St. Louis, Missouri
(Illinois Offices)*622 - St. Louis, Missouri
(Illinois Offices)*623 - Quincy624 - Effingham625 - Springfield (East)*
A
I
I
I
626 - Springfield (West)*627 - Springfield (City)628 - Centralia629 - Carbondal e
MISSOURI
630 - St. Louis*631 - St. Louis (City)633 - St. Louis*634 - Hannibal635 - Kirksville636 - Flat River637 - Cape Girardeau638 - Sikeston639 - Poplar Bluff640 - Kansas City*641 - Kansas City (City)644 - St. Joseph*645 - St. Joseph (City)646 - Chillicothe647 - Harrisonville648 - Joplin650 - Mid-Missouri651 - Jefferson City (City)652 - Mid-Missouri653 - Sedalia654 - 655 - Rolla656 - 657
(Arkansas Offices)*719 - Hot Springs National Park720 - 721 - Little Rock*722 - Little Rock (City)723 - West Memphis724 - Jonesboro725 - Batesville726 - Harrison727 - Fayetteville728 - Russellville729 - Fort Smith
Dal I as*Dal I as*Dallas (City)GreenvilleTexarkanaLongviewTylerPalestineLufkinFort Worth*Fort Worth (City)DentonWichita FallsFort Worth*Waco*Waco*Waco (City)Abilene*Midland*Houston (City)ConroeHouston*Houston*Beaumont*Beaumont (City)BryanVictoriaSan Antonio (West)*
781 - San Antonio (East)*782 - San Antonio (City)783 - Corpus Christi*784 - Corpus Christi (City)785 - McAllen
870 - Albuquerque*871 - Albuquerque (City)873 - Gallup04 - Farmington875i - Santa,Fe877 - Las Vegas878 - Socorro879 - Truth or Consequences880 - Las Cruces881 - Clovis882 - Roswell883 - ~arrizozq884 - ucumcarl
NEVADA
8190 - Las Vegas*891 - Las Vegas (City)893 - Ely894 - Reno* 4/805 - Reno ffi ty)897 - Carson City (City) 3/898 - Elko
POSTAL NATIONAL SERVICE AREA 9
CALIFORNIA
900 - Los Angeles (City)902 - Inglewood*903 - Inglewood (City)904 - Santa Monica (City)
11
Individual Incoinie by ZIP Cdde Area
905 - Torrance (City)906 - Whittier907 - Long Beach*908 - Long Beach (City)910 - Pasadena*911 - Pasadena (City)912 - Glendale (City)913 - Van Nuys*914 - Van Nuys (City)915 - Burbank (City)916 - North Hollywood (City)917 - Alhambra*918 - Alhambra (City)920 - San Diego*921 - San Di.ego (City)922 - Palm Springs923 - San Bernardino*924 - San Bernardino (City)925 - Riverside (City)926 - Santa Ana*927 - Santa Ana (City)928 - Anaheim (City)930 - Oxnard931 - Santa Barbara (City)932 - Bakersfield*
CALIFORNIA
933 - Bakersfield (City)934 - San Luis Obispo935 - Mojave936 - Fresno*937 - Fresno (City)939 - Salinas940 - San Francisok941 - San Franciso (City)943 - Palo Alto (City)944 - San Mateo (City)945 - Oakland*946 - Oakland (City)947 - Berkeley (City)948 - Richmond (City)949 - San Rafael950 - San Jose*951 - San Jose (City)952 - Stockton (North)953 - Stockton (South)*954 - Santa Rosa955 - Eureka956 - Sacramento (West)*957 - Sacramento (East)*958 - Sacramento (City)959 - Marysville
*Surrounding area only; does not include central city.J/ Zoned cities 100, 103, 104, 111, 112, 113, 114 and 116, taken togetherTomprise New York City.2/ Individuals giving offices of the Federal Government as their address.
J/ Area increased in size from 1979 to 1982.
T/ Area reduced in size from 1979 to 1982.
960 - Redding961 - Reno, Nevada
(California Offices)*962 - 966 - APO and FPO (San Francisco)
Individual Income by ZIP Code AjeaTABLE I--NUMBER OF RETURNS FOR TAX YEARS 1979 AND 1982, BY SIZE OF ADJUSTED GROSS INCOME, AND BY ZIP CODE AREA - CONTINUED
Individual Income by ZIP Code AreaTABLE I.--NUMBER OF RETURNS FOR TAX YEARS 1979 AND 1982, BY SIZE OF ADJUSTED GROSS INCOME, AND BY ZIP CODE AREA - CONTINUED
20 Individual Income by MP Code AnaTABLE I.--NUMBER OF RETURNS FOR TAX YEARS 1979 AND 1982, BY SIZE OF ADJUSTED GROSS INCOME, AND BY ZIP CODE AREA - CONTINUED
Indhddual Income by ZIP Code AnaTABLE I.--NUMBER OF RETURNS FOR TAX YEARS 1979 AND 1982, BY SIZE OF ADJUSTED GROSS INCOME, AND BY ZIP CODE AREA - CONTINUED
Individual Income by ZIP Code AreaTABLE 1-NUMBER OF RETURNS FOR TAX YEARS 1979 AND 1982, BY SIZE OF ADJUSTED GROSS INCOME, AND BY ZIP CODE AREA - CONTINUED
24 Individual Income by ZIP Code AreaTABLE I-NUMBER OF RETURNS FOR TAX YEARS 1979 AND 1982, BY SIZE OF ADJUSTED GROSS INCOME, AND BY ZIP CODE AREA - CONTINUED
26 Individual Income by ZIP Code AreaTABLE I.--NUMBER OF RETURNS FOR TAX YEARS 1979 AND 1982, BY SIZE OF ADJUSTED GROSS INCOME, AND BY ZIP CODE AREA - CONTINUED
1/Excludes additional exemptions for age and blindness.
'~/Includes returns with overseas military (APO or FPO) addresses.3/Data shown represent taxpayers using a place of business in the Federal Government, Washington, DC as their address.
ITOTES: Data by State are presented in ZIP Code order. When one or more sequential numbers are skipped in the table, this indicates that a ZIP Code
"area" actually has more than one three-digit code assigned to it, but that for ease of presentation, only the first or lower three-digit number
is shown. Thus, for example, when data are shown for ZIP Code areas 200 and 202, but not for 201, the data for 201 are included with those for
the first or lower ZIP Code number, i.e., for 200.
Data for 1979 represent all returns filed (and processed) in Calendar Year 1980; data for 1982 represent only returns filed (and processed)
through September 1983. See also "Data Sources and Limitations."