Over the past five decades, Kansas has experienced meaningful economic progress. From 1970 to 2023, the state’s median household income increased by 45.8 percent, outpacing the national growth rate of 32 percent. As a result, Kansas improved its national standing from the 43rd-highest median income in 1970 to 36th in 2023 — a seven-position climb.
In 1970, Kansas’ median household income (adjusted to 2024 dollars) was $48,251. By 2023, that figure had risen to $70,333. This sustained growth reflects long-term shifts in education, workforce composition, demographics, and economic development strategy.
How Kansas Compares Nationally
While Western, mid-Atlantic, and New England states saw the fastest income growth over this period, many Midwestern states lagged behind. Kansas, however, managed to outperform the national average in income growth despite regional headwinds such as manufacturing decline.
In fact, Kansas’ total growth over the period reached 146 percent of its 1970 income level, matching the national growth trajectory by 2023 but exceeding the national percentage increase.
This upward movement in state ranking signals that Kansas has strengthened its relative economic position over time.
Key Socioeconomic Drivers of Income Growth
Research shows that several factors are closely associated with income growth at the state level. In Kansas, notable shifts between 1970 and 2023 include:
Bachelor’s degree holders: +24%
Manufacturing workers: -5%
Residents age 19 and younger: -11%
Residents age 64 and older: +6%
Foreign-born population: +6%
Let’s examine what these changes mean for Kansas’ economic story.
1. Education as the Primary Driver
Educational attainment is the strongest factor associated with income growth nationwide — and Kansas reflects this trend. A 24 percent increase in bachelor’s degree attainment has likely contributed significantly to rising household incomes.
Higher educational attainment can:
Increase earning potential for residents
Attract higher-paying industries
Retain college graduates within the state
Support entrepreneurship and innovation
Institutions across Kansas, including major public universities and regional colleges, have played a critical role in workforce development and long-term economic stability.
2. Manufacturing Shifts and Economic Transition
Kansas experienced a 5 percent decline in manufacturing employment over the period. While deindustrialization hit many Midwestern states hard — particularly those dependent on heavy machinery and automotive industries — Kansas’ more diversified economy may have helped cushion the impact.
Nationally, the effects of manufacturing decline have varied widely by region. States that transitioned successfully into knowledge-based, service, and technology sectors generally saw stronger income growth. Kansas’ above-average income growth suggests it managed this transition relatively effectively.
3. Demographic Changes
Kansas’ population composition has also shifted:
A decline in residents under 19 suggests lower birth rates and slower youth population growth.
An increase in residents over 64 reflects national aging trends.
A 6 percent increase in foreign-born residents aligns with national findings that immigration is positively associated with income growth.
Immigration can contribute to economic expansion by filling workforce gaps, supporting entrepreneurship, and increasing overall productivity. Kansas’ growth in its foreign-born population may have played a role in strengthening key industries such as agriculture, healthcare, and manufacturing.
What Didn’t Drive Income Growth
Interestingly, broader national analysis shows that state sales and income tax rates — whether high or low — had no measurable association with changes in median household income. This finding challenges the common assumption that lowering taxes alone stimulates income growth.
Instead, long-term investment in education and workforce development appears to play a more consistent role.
Why This Matters for Kansas
Median household income is not the sole measure of prosperity, but it provides a powerful snapshot of economic strength. Kansas’ 45.8 percent growth over 53 years signals:
Steady economic resilience
Effective workforce development
Successful adaptation to industrial shifts
Competitive positioning among Midwestern states
For policymakers and economic developers, the data reinforces the importance of:
Investing in higher education
Supporting skilled workforce pipelines
Attracting and retaining talent
Ensuring that new industries support strong wages
Looking Ahead
Income growth occurs for two main reasons:
Residents earn higher wages, or
Higher-income residents move into the state.
Both trends matter for economic development. Kansas’ long-term improvement in national ranking suggests progress on both fronts.
As the state continues to compete for new industries and talent, the lesson from the past five decades is clear: education, workforce quality, and adaptability matter more than tax structure alone.
For families considering relocation, Kansas’ steady income growth and rising national ranking reflect a state that has quietly but consistently strengthened its economic foundation.
