Income Adjustment Module

This module updates person-level earnings based on county-specific income growth rates. It applies annual adjustment factors to maintain realistic income trajectories over time, accounting for geographic variation in economic conditions. The module reads rate data from an external table and applies multiplicative adjustments to current earnings.

Key features:

  • Applies county-specific income growth rates to person earnings.

  • Updates earnings multiplicatively based on annual rate data.

  • Maintains geographic variation in income growth patterns.

  • Simple, direct adjustment without complex modeling.

Caveats:

  • Requires an income_rates table with columns: year, lcm_county_id, rate.

  • Assumes households table has lcm_county_id column for geographic mapping.

  • All persons in the same county receive the same proportional adjustment.

  • No validation of rate values; extreme rates could produce unrealistic results.

  • Designed for use as-is; users should ensure rate data is reasonable and complete.

Module function

This module does not have configuration options

demos.models.income_adjustment.income_adjustment(persons, households, income_rates, year)[source]

Update person-level earnings based on county-specific income growth rates.

This step applies multiplicative adjustments to person earnings using annual growth rates that vary by county. It maintains geographic variation in income trajectories while updating the entire population simultaneously.

Parameters:

  • persons (orca.Table) – The persons table containing individual-level attributes including earnings.

  • households (orca.Table) – The households table containing household-level attributes including county ID.

  • income_rates (orca.Table) – Table with annual income growth rates by county.

  • year (int) – The current simulation year.

Return type:

None

Notes

  • Modifies persons.earning in place using multiplicative adjustment.

  • Requires income_rates table with columns: year, lcm_county_id, rate.

  • All persons in the same county receive the same proportional adjustment.

  • Rate of 0.05 means 5% growth (earnings multiplied by 1.05).