© Copyright 2002 by the Wyoming Department of Employment, Research & Planning
Defining Residency for the Wyoming Workforce
by: Sylvia D. Jones, Research and Statistical Analyst
"Those workers who do not have a Wyoming-issued driver's license and who work less than four quarters in the State are not representative of everyone who is employed in the State. Given that nonresidents work, on average, only two quarters, it is likely their quarterly earnings are significantly lower than more permanent residents."
In June 2002, the
U.S. Census Bureau released the first detailed economic data for Wyoming from
the 2000 Census long-form questionnaire.1 The data
are quite diverse, ranging from population by age to household type and
educational attainment. All of the data represent the “resident population” of
Wyoming. What exactly constitutes Wyoming’s resident population? Understanding
the answer to this question is particularly important when addressing the
related issues of the current and potential labor supply. In this article, we
review several definitions of residency, review research by other states to
define working residents, develop our own methodology for determining residency,
and present research indicating the consequences of including nonresident
workers when calculating average wages.
Existing Definitions of Residency
The U.S. Census Bureau uses the concept of usual residence as its working
definition of residency. Usual residence is defined as the place where a person
lives and sleeps most of the time. This place is not necessarily the same as the
person’s voting or legal residence. People who reside in two places, or those
who commute part of the week, are considered residents of the place where they
spend the most time.2 This is true regardless of a
person’s tenure in that area. In other words, for Census purposes, people are
considered residents of Wyoming if they worked and slept here for that one week
during the time the Census was taken in April 2000, even if they lived here only
during that week.
For statistical purposes, other U.S. Department of Commerce entities use the
concept of usual residence as well, although with some slight modifications. For
instance, the Bureau of Economic Analysis defines employee residency as the
location at which the employee is residing while employed.3
For purposes of enumeration and statistical estimation, persons are identified
by place of residence rather than place of work. This can become problematic,
especially in areas located close to a state border. Labor markets are not
always defined by state lines. For instance, the 1990 Decennial Census showed
that of the 7,234 people who worked in Teton County, 642 (9.0%) commuted from
another state.
Wyoming does not have a single statistical definition of residence. Rather, it
has several administrative definitions. For voting purposes, residence is
defined as the place where a person has a current habitation and to which,
whenever absent, has the intention of returning.4
The State of Wyoming adds the concept of domicile to further clarify who is
considered a legal resident of the State. A domicile refers to that place where
a person has a true, fixed, and permanent home to which, whenever absent, the
person has the intention of returning. A person may have more than one
residence, but only one domicile. To be considered a legal resident of Wyoming,
a person must have domiciled within Wyoming for a period of not less than one
year and not claimed residency elsewhere for any purpose during the one year
period.5
The University of Wyoming uses a similar administrative definition. It defines a
Wyoming resident as an individual with a permanent home in Wyoming who has
resided in the State for at least one full year. Determination of whether or not
a permanent residence has been established is based on factors such as full-time
employment in Wyoming for one continuous year, ownership of property in the
State, a Wyoming vehicle registration, a Wyoming address on the most recent tax
return, a valid Wyoming driver’s license, or a Wyoming voter registration.6
The Wyoming Game and Fish Department also has an administrative definition of
residence. To qualify for a resident game and fish license, permit, or tag, “a
person shall be domiciled and shall physically reside in Wyoming for one (1)
year immediately preceeding the date the person applies for the license, permit,
or tag.”7 The place where a person’s family resides
is presumed to be the place of residence, but a person who establishes or
continues a place of abode with the intent of remaining at a place other than
where the person’s family resides shall be presumed a resident of the place
where the person actually resides. The person must physically reside in Wyoming,
must intend to make a permanent home in Wyoming, and is not residing in Wyoming
for a special or temporary purpose.
For purposes of research, Wyoming Unemployment Insurance (UI) Wage Records
counts people by place of work in Wyoming, regardless of where they live.
According to Wage Records, there were 239,306 individuals working in UI covered
jobs at any time during the second quarter of 2000, the same period the 2000
Census was conducted. Given the differences in the criteria used for inclusion
in the various employed population counts, we cannot easily compare the 241,055
Census-defined resident employed population as of April 2000 (some of whom
worked in other states) to the 239,306 Wage Records-defined employed population
during the same period. Each count describes a slightly different subset of
people. However, we would still expect the Census-defined employed population to
be very close to the Wage Records-defined employed population. In theory, most
people who work in Wyoming also live in Wyoming and vice-versa. If the Census
count was greatly larger, it could indicate that many people living in the State
commute out-of-state to work. Conversely, if the Wage Records count is greatly
higher, it could mean there are many nonresidents working in Wyoming.
When compared, Wage Records represent 99.3 percent of the Census count.
Regardless of appearances, the two counts are not similar because the Wage
Records database only includes approximately 85 to 90 percent of all workers in
Wyoming. Most jobs in production agriculture, Federal Government, railroads, and
the self-employed are not reported in Wage Records. It is not possible to
account for the differences caused by most of these jobs; however, when
agricultural production workers were removed from the total, an estimated
232,289 workers remained. There were 234,930 workers based on Wage Records after
removing agricultural workers, making Wage Records 101.1 percent of the Census
estimate. This means that there were many more people working in Wyoming than
workers actually living in the State in April 2000. In other words, it appears
there is a net inflow of commuters into Wyoming, or at least a significant group
of nonresidents employed in the State.
Research from Other States
For statistical and research purposes, it is desirable that we have a way of
separating individuals who are nonresidents but work in Wyoming from those who
are working residents. Research from other states indicates that the presence of
a driver’s license is a fairly robust proxy for residency. For example, in 1996
Hans Johnson produced a report on undocumented immigration to California during
the period 1980 to 1993.8 In his report, he compared
the number of California residents (as defined by the Census Bureau) to the
number of individuals who held a California driver’s license. He found that in
both 1980 and 1990, only nine percent of residents over the age of 18 did not
have a driver’s license.
The State of Alaska has also conducted research on residency. The Alaska
Department of Labor and Workforce Development prepares a report each year on
resident hires. They define Alaska residency by matching the Alaska Department
of Revenue Permanent Fund Dividend (PFD) with the Alaska Department of Labor and
Workforce Development Wage Record file. The PFD file is a list of Alaskans who
either applied for or received a PFD. To be eligible to receive the PFD,
individuals had to be present for the entire year. The Alaska Department of
Labor and Workforce Services has tried using other measures to determine
residency. The method most closely matching the PFD is the presence of an Alaska
driver’s license. For instance, there were 362,873 total workers in 2000. There
were 297,885 PFD-determined resident workers and 284,574 workers with an Alaska
driver’s license, a difference of only 4.5 percent.9
Table 1 compares Alaska residents to the number of Alaskan driver’s licenses for
1998 through 2000.
Wyoming does not have a Permanent Fund Dividend or any sort of equivalent with
which to firmly establish residency. However, if we can adapt what we have
learned from Alaska, we can infer that possession of a state-issued driver’s
license closely approximates state residency.
Wyoming Specific Research
As previously discussed, Wyoming does not have a standard statistical definition
of residency. It is apparent that not all who work in Wyoming are residents of
the State. Therefore, we find it necessary to propose a standard definition of
Wyoming residency applicable to workers found in Wyoming Wage Records. Those who
do not have a Wyoming-issued driver’s license and who work less than four
quarters in the State are not representative of everyone who is employed in the
State. These differences create a clear line of demarcation between workers.
Hence, Wyoming residents are defined as individuals who hold a Wyoming-issued
driver’s license or work in the State for at least four quarters. The workers
who do not meet these criteria are termed nonresidents. While this may seem a
harsh generalization, there is ample data to support the definition.
With our unique economy and number of border cities (e.g., Cheyenne, Evanston,
Jackson, Gillette), we know that there are people who either commute into the
State to work or live here temporarily while working. This is especially true in
the tourism industry which relies heavily on seasonal employment. However, we
previously had no easy method of sorting people by state residence. The closest
administrative database we have is driver’s license data. A Wyoming Labor
Force Trends article in September 2001, “Labor Market Areas: Connecting
Place of Work to Place of Residence with Administrative Data,” discussed this
issue specifically for Teton County. In 2000, 14,580 people worked in Jackson,
Wyoming, based on Wage Records. Of those, 7,579 (52.0%) did not have a Wyoming
driver’s license and we have no documented evidence related to where they
actually lived.10
Examples of Wage Records without corresponding driver’s license information are
found throughout the State. During the years 1997 to 2000, an average of 32,105
persons per year (or approximately 10.7% of persons working in Wyoming) had
unknown demographics.11 We do not have demographic information
(age, gender, and place of residence) on these people because they lack a
Wyoming-issued driver’s license. Furthermore, demographics cannot be imputed
(statistically determined from other known data) because R&P’s rules for
imputation require that the individual be employed in Wyoming for at least four
quarters.12 This leaves us with a group of people whom we know
very little about.
What we do know about workers for whom we are missing demographic information is
that they are not at all similar to the rest of the Wyoming workforce. According
to Wage Records data collected since 1992, women work an average of 17.7
quarters in Wyoming while men average 18.1 quarters. Those whose gender we do
not know only average 1.7 quarters. The small number of average quarters worked
suggests that workers in this group are highly mobile and marginally attached to
the Wyoming labor market.
Table 2 illustrates the mobile nature of this group of people. In the reference
period, fourth quarter of 1999 (1999Q4), there were 224,136 individuals whose
primary employer was in Wyoming.13 Primary employer
is defined as the employer that paid the largest proportion of wages to an
individual in any given quarter. Of those who worked primarily in Wyoming, we do
not have demographics for 9,144. In 1999Q3, one quarter prior, 31.5 percent of
the 9,144 workers (2,877) were found working primarily in Wyoming. In the
quarter following the reference period, 17.7 percent of the 9,144 workers
(1,622) were still employed primarily in Wyoming. Interestingly, in 1998Q4, four
quarters prior to the reference period, only 2.0 percent of those individuals
worked primarily in Wyoming. In 2000Q4, four quarters after, only 2.6 percent
still worked primarily in the State. Although this article reports data using
only 1999Q4 as the reference period, the same employment patterns were exhibited
when using other quarters as the reference period. In essence, tabular data
indicate that only about three percent of people for whom we are missing
demographics work in Wyoming for a year or more. Most of them work one quarter
and then leave.
Taking the analysis a step further, all those who only worked in 1999Q4 (i.e., a
more stringent subset of nonresident workers), were examined. Approximately 90
percent of those individuals lacked a Wyoming driver’s license. The majority of
them were found in three industries: Construction, Retail Trade, and Services
(see Table 3), which is not surprising considering the seasonal nature of these
industries.
The mobile pattern presented by the nonresident workers suggests that they might
also have lower quarterly earnings in Wyoming than Wyoming residents. We know
that those who work continuously earn more in a quarter than those who have an
employment change. In the transportation industry, those who entered or left
employment in the fourth quarter of 1999 earned only about 20 percent of the
wages earned by those who remained continuously employed.14
Given that nonresidents work, on average, only two quarters, it is likely their
quarterly earnings are significantly lower than more permanent residents.
Our research indicates that in 1999, the average annual wage for nonresident
workers was only $4,030 (30.6% of the annual wages for women and 15.9% of the
annual wages for men during the same year). Including the wages of the 11.8
percent of workers considered nonresidents in the total reduces Wyoming’s mean
annual wage by 9.4 percent or $1,820 (see Table 4).
Implications
In general, people who do not obtain a driver’s license in a given state are
less attached to that state than those who do. Perhaps they do not plan to work
in the state long enough to consider themselves residents. Roughly ten percent
of Wyoming’s workforce in any given quarter do not hold a Wyoming driver’s
license. It seems reasonable to label that ten percent of workers as
nonresidents of Wyoming. Excluding the nonresidents from our summary statistics
would allow for a much better picture of the resident Wyoming labor market.
Therefore, we propose classifying individuals without a Wyoming-issued driver’s
license or at least four quarters of work history in Wyoming as nonresident
workers and count them separately. More research may be required to explore
additional administrative databases for a better definition of residency.
However, we believe this definition of Wyoming residency is workable and
statistically meaningful.
1U.S. Department of Commerce, Economics and
Statistics Administration, Bureau of the Census, Census 2000 Social,
Economic, and Housing Profiles Released for Wyoming, June 4, 2002
<http://www.census.gov/Press-Release/www/2002/cb02cn114.html>
(November 7, 2002).
2U.S. Department of Commerce, Economics and
Statistics Administration, Bureau of the Census, State and County
QuickFacts, “Resident Population and Net Change,” n.d. <http://quickfacts.census.gov/qfd/meta/long_68166.htm>
(November 7, 2002).
3Wyoming Department of Information and
Administration, Economic Analysis Division, Wyoming Income, Employment,
and Gross State Product Data Notes, June 18, 2002, <http://eadiv.state.wy.us/i&e/i&enotes.htm>
(November 7, 2002).
4State of Wyoming, W.S. 22-1-102(a)(xxx)(A),
“Wyoming Election Code,” July 1, 2002, <http://legisweb.state.wy.us/statutes/titles/title22/chapter03.htm>
(November 7, 2002).
5State of Wyoming, W.S. 39-11-109(c)(i)(D),
“Administration,” July 1, 2002, <http://legisweb.state.wy.us/statutes/titles/title39/chapter11.htm>
(November 7, 2002).
6University of Wyoming, Petition for Wyoming
Resident Tuition Status, March 1999, <http://siswww.uwyo.edu/adm/Residency.htm>
(November 7, 2002).
7State of Wyoming, W.S. 23-1-107,
“Residency for Obtaining Game and Fish Licenses,” July 1, 2002, <http://legisweb.state.wy.us/statutes/titles/title23/chapter01.htm>
(November 7, 2002).
8Hans P. Johnson, Undocumented Immigration to
California: 1980-1993, Table 5.5, 1996, <http://ppic.org/publications/PPIC100/PPIC100.pdf/index.html>
(November 7, 2002).
9Jeff Hadland, Nonresidents Working in Alaska -
2000.
10Krista Gerth, Tony Glover, and Carol Toups,
“Labor
Market Areas: Connecting Place of Work to Place of Residence with Administrative
Data,” Wyoming Labor Force Trends, September 2001, pp. 1-9, 13.
11Sylvia D. Jones, “2000 Total for All Industries,”
Mean Earnings by Age, Gender, and Industry 1997-2000, March 2002,
<http://lmi.state.wy.us/wfdemog/2total00.PDF> (November 7, 2002).
12Tony Glover, “Enhancing the Quality of Wage
Records for Analysis through Imputation: Part One,” Wyoming Labor Force
Trends, April 2001, pp. 9-12 and “Part Two,” Wyoming Labor Force
Trends, June 2001, pp. 1-6.
13There were an additional 4,279 individuals who
worked in Wyoming during 1999Q4 but whose primary employer was in one of the
states with whom we have a data sharing agreement. Wyoming currently has data
sharing agreements with Colorado, Idaho, Nebraska, New Mexico, South Dakota,
Texas, and Utah.
14Sylvia D. Jones, “Demographic Analysis of Employee
Turnover in the Transportation Industry, Fourth Quarter, 1999,” Wyoming
Labor Force Trends, August 2001, pp. 10-11.
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