# Comparing Minneapolis wages to wages in North Minneapolis

As Aristotle explored in his Metaphysics: Book Delta, the parts of something, say the parts of a city, are divisions of the whole that can be differentiated from one another by quantification or by qualification. In the sense of quantifying, North Minneapolis can be differentiated from Minneapolis by observational data, for example, unemployment rates, education rates, and wages.

In the sense of qualifying, North Minneapolis can be differentiated by recognition of area. But it should be noted that the geography of North Minneapolis is still the geography of Minneapolis. It is just a recognition of a specified area, which is not Northeast Minneapolis, South Minneapolis, or Southwest Minneapolis.

Furthermore, North Minneapolis is broken down further by quantification and qualification into area codes: 55411 and 55412. Thus, the 55411 and 55412 zip codes are distinguishable by name and specific geography, this is obvious, and by observational data.

For example, previous articles in this blog have shown the 55411 zip code to be the zip code with the highest number of reported crimes in North Minneapolis; whereas, previous articles in this blog have shown the 55412 zip code to be the zip code with the highest number of foreclosures over the past decade.

Utilizing this systemic approach, the wages between Minneapolis and North Minneapolis, specifically the 55411 zip code, can be differentiated and analyzed.

Thus, are the dynamics of the wages (how wages change over time) shown to be relatively equal to one another? Are the dynamics of the wages of the 55411 zip code shown to be greater than Minneapolis? Or are the dynamics of the wages of the 55411 zip code shown to be less than Minneapolis?

As Graph 1 illustrates, we can see that the wage rate of Minneapolis is steeper than the wage rate of the 55411 zip code in Graph 2. And we’re not just eyeing this. We can see this distinctly via the linearization equations in Graph 1 and Graph 2.

The linearization equation in Graph 1 (y = 6.4152x + 1083.1) shows a rate of 6.4 and the linearization equation in Graph 2 (y = 2.2805x + 823.6) shows a rate of 2.3, if both rates of change are rounded-off. Obviously, 6.4 is greater than 2.3, and by quite a bit. Why is this important?

Dynamically (how wages change over time), this shows the wages of Minneapolis are growing at a greater rate than the wages of the 55411 zip code. Of course, these equations also show that the average weekly wages of Minneapolis are between \$250 and \$300 higher than the 55411 zip code.

This little bit of information ought to provide policy makers with some much-needed direction to create and apply economic policy. Of course the operative modal verb is “ought to.”

So do you think local policy makers would consider differentiating between the part and the whole when creating economic policy? Or do you think local policy makers would just create and apply the same policy for both the part and the whole?

Photo credit: Wikimedia Commons

# Minneapolis Weekly Wages | A Steady Increase

Despite the Great Recession a few years ago, wages in Minneapolis have been steadily rising. As Figure 1 shows, the average weekly wages for Minneapolis increased from about \$1100 per week in the fourth quarter of 2006 to just over \$1300 in the fourth quarter of 2014.

An additional observation illustrates that the average weekly wages for Minneapolis were higher than both the metro area and Minnesota. And this makes sense. Wages should be higher in urban environments because of the potential for interactions between businesses, and workers and businesses. For example, Minneapolis’ six Forbes companies reside in the 3rd Ward, which is downtown Minneapolis; and they are all within a couple blocks of each other. And this does not count all the other businesses both small and large that benefit from the success of these six highly competitive firms.

Furthermore, the economic heart of Minneapolis, and the Twin Cities for that matter, is connected with Downtown St. Paul by way of the Green-Line (Light-rail) and the Minneapolis/St. Paul International Airport by way of the Blue-Line (Light-rail). This is not a direct cause of steadily increasing average weekly wages, but rather a possible correlation.

Finally, compared to the rest of the nation over this same time period, Minneapolis has been playing well above the average. According to the Bureau of Labor and Statistics,

From 2005 to 2014, [the] average weekly wages for all private industries increased from \$779 to \$986, or 27 percent.

It is clear from this data that the average weekly wages for Minneapolis workers were better during the middle of the last decade and is still better today. As a comparison for that same time period, Minneapolis average weekly wages grew from \$1104 to \$1329.

In the next article, we will compare the industry with the highest weekly wages of Minneapolis to the industry with the lowest weekly wages of Minneapolis during the 2006 to 2014 time period. Then we will compare those wages against the national average weekly wages to provide a more in-depth picture of how the workers of Minneapolis have been doing over the past ten years.

Matt Johnson is a writer for The Systems Scientist, and a mathematical scientist. You can connect with him directly in the comments section, and follow him on Twitter or on Facebook