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The Self-Employment Income Gap: State-by-State Analysis (2010-2023)



By: Jack Nicholaisen author image
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Discover which states reward self-employment most and where the income gap is widest. This deep dive into BEA proprietor income data reveals surprising regional patterns that could impact your business location decision. Make informed choices with Business Initiative’s expert registration guidance t

Methodology

Proprietors’ income as a percent of total personal income by state, 2023. Numerator: SAINC4 LineCode 10; denominator: CAINC1 LineCode 1.

Units: Percent; underlying series in thousands of dollars (BEA).

Rankings (selected geographies)

Rank Area Value
1 *Alaska ** 0.10
2 North Dakota 0.10
3 *Hawaii ** 0.10
4 Iowa 0.10
5 Kansas 0.10
6 Nebraska 0.10
7 Nevada 0.10
8 Connecticut 0.10
9 West Virginia 0.10
10 Wisconsin 0.10
11 Delaware 0.10
12 Tennessee 0.10
13 Washington 0.10
14 Michigan 0.10
15 Pennsylvania 0.10

Proprietors' income share of total personal income (%)

Data sources

FAQs

What does this page measure?

It ranks states by how much proprietors' income grew as a share of total state personal income from 2010 to 2023, in percentage points.

The gap here means that change in share—not a survey self-employment rate or a wage-versus-business-owner paycheck comparison.

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We use Bureau of Economic Analysis (BEA) Regional data: proprietors' income is SAINC4 LineCode 70 (millions of dollars); total personal income is CAINC1 LineCode 1 (thousands of dollars). The share in each year is comparable after accounting for those units.

Rankings show the largest increases in that share (2023 share minus 2010 share). States where the share fell rank lower; the table highlights the top increases.

BEA proprietors' income includes income from partnerships and other categories they classify under that heading; it is not identical to “self-employed only” in Census surveys.

Why is this not the same as the self-employment rate?

The self-employment rate usually comes from household surveys (for example, ACS) and counts people by class of worker.

This page uses national accounts income: how much proprietors' income contributes to total personal income in each state.

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Survey rates and BEA income shares answer different questions. A state can have a moderate survey self-employment rate but a high or rising share of proprietors' income in BEA data, or the reverse, depending on industry mix and income levels.

Use this page for income-weighted, state-level context from BEA; use survey sources when you need counts or demographics of self-employed workers.

What do percentage points mean here?

One percentage point is a one-point move on the share scale—for example, from 8% to 10% is a +2 percentage point change.

We report the change in the proprietors' income share from 2010 to 2023 in those units.

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Do not confuse percentage points with percent change of the share. A move from 8% to 10% is +2 percentage points, which is a 25% relative increase in the share itself.

The chart and table use the same rounded values for the top states shown.

How often is this data updated?

BEA revises regional personal income annually; major releases often follow the calendar year after the reference year.

This page is rebuilt when we refresh BEA-backed statistics posts.

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Check the post update date and the BEA Regional release notes if you need the exact vintage of the estimates.

Historical years can be revised when BEA improves source data or methods.

What are the limitations?

Figures are in current dollars; they are not adjusted for inflation across 2010 and 2023.

Small states and D.C. can show volatile shares; BEA may flag estimates with footnotes on state names.

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The ranking is descriptive—it does not explain causation (tax policy, migration, industry mix, etc.).

Cross-state comparison is for the published BEA concepts and units; do not mix with other tables without checking definitions.

Where can I get the raw data?

Use the BEA Regional Economic Accounts and the BEA API; the post lists official links under Data sources.

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Request SAINC4 LineCode 70 and CAINC1 LineCode 1 for state geographies and the years you need; apply the same unit logic as in the methodology if you replicate the share.

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About the Author

jack nicholaisen
Jack Nicholaisen

Jack Nicholaisen is the founder of Businessinitiative.org. After acheiving the rank of Eagle Scout and studying Civil Engineering at Milwaukee School of Engineering (MSOE), he has spent the last 5 years dissecting the mess of informaiton online about LLCs in order to help aspiring entrepreneurs and established business owners better understand everything there is to know about starting, running, and growing Limited Liability Companies and other business entities.