As we have watched the Little League World Series this week, it struck me how age and correlated development really can make a difference. One game saw an almost 170 pound player playing against a sub-100 pound player.
The same is true when it comes to earnings capacity. Those states with a younger median age, all-else held constant, have a potential better long-term outlook when it comes to growing incomes. A study in 2009 reported that the peak earning capacity was reached in the 40 to 55 year old group, with their earnings being three times that of the aged 20 to 24 cohort.
So what are the median ages by state as reported in the Census Bureau 2010 survey? Utah was the youngest at a 29.2 years median age, followed by Texas. The state with the oldest population was Maine (42.7 years old), followed by Vermont. At the same time, the U.S. median age was 37.2
To see the source for these data click http://www.usa.com/rank/us–median-age–state-rank.htm?hl=NE&hlst=NE
Naturally, there are numerous other factors impacting income including the type of businesses, education levels, experience and overall supply and demand of workers.
I do believe, however, that the younger states have a better income improvement potential, all else equal.