Commuting has a major impact in today’s world, particularly on income eventually dispersed throughout a region.
A residence adjustment used by the Bureau of Economic Analysis converts earnings by place of work to place of residence and helps estimate the impact of commuting on a county’s income.
To get the residence adjustment, the money earned at jobs within the county by people living outside the county – outflow of earnings – is subtracted from the amount of money earned by residents who work outside of the county – inflow of earnings.