John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among Kentucky’s counties, Martin County saw the largest increase in transfer dependency over the past 10 years, surging 18.7% from 42.2% in 2012 to 60.9% in 2022, and up 37% from just 23.9% in 1970. In dollar terms, government transfers per capita in Martin County jumped from $13,260 in 2012 to $19,449 in 2022, a stark contrast to the $2,446 recorded in 1970.
Harlan County and Letcher County followed with the second-largest increase in transfer dependency, increasing 14.4% from 2012.
Additionally, Owsley County had the highest percentage of income derived from government transfers, at 63.2% in 2022, making it the county with the highest overall transfer dependency. Martin County and Harlan County followed closely behind, with transfer dependency rates of 60.9% and 57.3% in 2022, respectively.
Compared to 1970, Owsley County increased by 29.7%, while Martin County and Harlan County have increased by 37% and 35.4%, respectively, showing sustained reliance on government transfers. Residents in Owsley County received an average of $28,538 in transfers per capita, with Martin County and Harlan County close behind at $19,449 and $21,605, respectively.
For comparison, the statewide average was 24.8% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $12,890 per resident in 2022, compared to $11,542 nationwide.
Government transfer payments are non-repayable funds provided by federal, state, or local governments to support individuals in need. These payments aim to stabilize economic conditions and provide financial support during hardships. Key programs include Social Security transfers (retirement benefits), Medicare transfers (healthcare for seniors), Medicaid transfers (healthcare for low-income individuals), and income maintenance transfers (financial assistance for basic needs).
In Kentucky, reliance on government transfers was just 9.8% (or $1,873 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 24.8% (or $12,890 per capita) in 2022, reflecting a total increase of 15% since 1970. This shift is largely influenced by increased healthcare costs, and economic transformations that have reshaped income sources across the U.S.
In 2022, the primary government transfer programs in Kentucky included:
- Social Security: $3,977 (30.9% of total transfers)
- Medicare: $2,988 (23.2% of total transfers)
- Medicaid: $3,385 (26.3% of total transfers)
- Income Maintenance Programs: $1,300 (10.1% of total transfers)
With 17.4% of the population aged 65 and older, Kentucky has a significant demand for programs like Social Security and Medicare. However, counties with higher poverty rates also show elevated Medicaid and income maintenance participation.
Government transfers have long been a modest financial safety net, historically comprising only a small fraction of Americans' income. However, since the 1970s—sometimes dubbed the “Great Transfer-mation”—dependency has surged from 8.2% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.6% (or $11,542 per capita) in 2022 nationwide. In Kentucky, reliance on government transfers has similarly increased from 9.8% (or $1,873 per capita) in 1970 to 24.8% (or $12,890 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Dependency on Transfers (%) | Change Since 2012 | Change Since 1970 | Per Capita Amount (2022) | Per Capita Change Since 2012 | Per Capita Change Since 1970 |
|---|---|---|---|---|---|---|
| Adair County | 37.5% | 3.7% | 21.9% | $15,220 | $4,208 | $13,131 |
| Allen County | 30.5% | 1.5% | 15.7% | $12,476 | $2,753 | $10,308 |
| Anderson County | 22.7% | 3.7% | 15% | $10,338 | $2,431 | $8,847 |
| Ballard County | 28% | 2.4% | 14.9% | $13,959 | $3,549 | $11,351 |
| Barren County | 31.3% | 4.8% | 20.2% | $13,406 | $3,175 | $11,640 |
| Bath County | 38.3% | 5.1% | 23.7% | $14,247 | $3,027 | $12,084 |
| Bell County | 54.2% | 9.7% | 32.1% | $21,480 | $7,343 | $18,626 |
| Boone County | 14.5% | 1.3% | 9.2% | $8,527 | $1,965 | $7,431 |
| Bourbon County | 21% | -0.5% | 13.2% | $12,035 | $2,983 | $10,420 |
| Boyd County | 34.1% | 5% | 24.9% | $15,653 | $3,736 | $13,620 |
| Boyle County | 27.2% | 2.6% | 16.6% | $12,309 | $2,498 | $10,369 |
| Bracken County | 30.6% | 4.5% | 17.4% | $13,361 | $3,682 | $11,356 |
| Breathitt County | 56.1% | 10.9% | 28.3% | $21,501 | $6,028 | $18,601 |
| Breckinridge County | 32.3% | 5.3% | 19.8% | $13,425 | $3,286 | $11,565 |
| Bullitt County | 19.2% | -0.1% | 13.2% | $9,832 | $1,660 | $8,881 |
| Butler County | 34.2% | 3.4% | 15.4% | $14,753 | $3,533 | $12,459 |
| Caldwell County | 33.8% | 2.7% | 20.3% | $15,101 | $3,902 | $12,659 |
| Calloway County | 27.1% | 4.6% | 16.6% | $11,910 | $3,115 | $10,229 |
| Campbell County | 17.5% | 0.5% | 8.8% | $10,796 | $2,509 | $9,077 |
| Carlisle County | 26.9% | 3.3% | 11.3% | $14,471 | $3,445 | $11,981 |
| Carroll County | 27.7% | 0.5% | 17.5% | $12,869 | $2,614 | $11,018 |
| Carter County | 41.9% | 6.6% | 24.7% | $16,109 | $4,589 | $13,806 |
| Casey County | 40.4% | 3% | 22.6% | $15,974 | $4,156 | $13,992 |
| Christian County | 27.7% | 9.1% | 19.7% | $11,863 | $3,742 | $10,226 |
| Clark County | 25.9% | 2.6% | 17.4% | $12,304 | $2,495 | $10,594 |
| Clay County | 53.5% | 7% | 24.7% | $20,315 | $6,032 | $17,447 |
| Clinton County | 45.9% | 5.4% | 20.9% | $20,000 | $6,222 | $17,384 |
| Crittenden County | 35.1% | 4.8% | 21.1% | $14,580 | $3,283 | $12,518 |
| Cumberland County | 48.1% | 3.8% | 25.7% | $23,787 | $9,054 | $21,088 |
| Daviess County | 26.9% | 4.2% | 18.3% | $13,229 | $2,967 | $11,513 |
| Edmonson County | 31.5% | 0.2% | 18.1% | $12,539 | $1,917 | $10,981 |
| Elliott County | 51.3% | 6.5% | 29.5% | $14,055 | $3,293 | $12,117 |
| Estill County | 42.6% | 5.4% | 23.5% | $16,596 | $4,120 | $14,010 |
| Fayette County | 15.8% | 0.7% | 9.6% | $9,400 | $1,616 | $7,947 |
| Fleming County | 32% | 2% | 20.1% | $12,935 | $2,443 | $11,125 |
| Floyd County | 48.5% | 10.2% | 30.6% | $21,074 | $6,444 | $18,579 |
| Franklin County | 27.8% | 2.9% | 20.9% | $13,770 | $2,554 | $12,182 |
| Fulton County | 44.2% | 6.3% | 26.6% | $18,121 | $4,891 | $15,193 |
| Gallatin County | 26% | 1.6% | 14.8% | $11,197 | $3,226 | $9,390 |
| Garrard County | 28.7% | 2.2% | 19.2% | $12,476 | $2,913 | $10,742 |
| Grant County | 27.8% | 1.6% | 16.1% | $12,639 | $2,934 | $10,590 |
| Graves County | 30.1% | 2% | 17.1% | $15,119 | $4,148 | $12,775 |
| Grayson County | 34.4% | 4.2% | 18.8% | $14,287 | $3,724 | $12,092 |
| Green County | 40.1% | 5.5% | 29.9% | $16,310 | $4,300 | $14,717 |
| Greenup County | 32.5% | 3.3% | 21.3% | $15,475 | $3,113 | $13,672 |
| Hancock County | 22.4% | 0.4% | 15.6% | $12,094 | $3,183 | $10,596 |
| Hardin County | 24.6% | 4.6% | 21.4% | $12,992 | $3,793 | $12,089 |
| Harlan County | 57.3% | 14.4% | 35.4% | $21,605 | $7,065 | $18,549 |
| Harrison County | 29.2% | 4.1% | 17.9% | $12,446 | $3,088 | $10,415 |
| Hart County | 31.9% | 1.1% | 18.6% | $12,644 | $2,451 | $10,756 |
| Henderson County | 28.8% | 5.8% | 19.3% | $14,061 | $4,372 | $12,267 |
| Henry County | 26.6% | 2.7% | 16.8% | $13,190 | $3,317 | $11,268 |
| Hickman County | 30.9% | 1.4% | 15.5% | $17,459 | $5,397 | $15,469 |
| Hopkins County | 32% | 6.8% | 21.3% | $14,987 | $4,433 | $12,655 |
| Jackson County | 42.6% | 5.3% | 20.2% | $15,649 | $4,290 | $13,294 |
| Jefferson County | 18.8% | 1.2% | 11.9% | $12,061 | $2,766 | $10,376 |
| Jessamine County | 16.9% | 0% | 9.5% | $9,841 | $2,355 | $8,454 |
| Johnson County | 45.9% | 10.5% | 28.8% | $18,025 | $4,953 | $15,274 |
| Kenton County | 14.8% | 0.2% | 6.5% | $10,281 | $2,552 | $8,527 |
| Knott County | 53% | 11.1% | 24% | $21,583 | $7,197 | $18,854 |
| Knox County | 47.4% | 5.2% | 25.3% | $17,645 | $4,224 | $15,161 |
| Larue County | 30% | 3.5% | 21% | $12,747 | $2,851 | $10,941 |
| Laurel County | 33.3% | 3.8% | 18.1% | $13,437 | $2,940 | $11,402 |
| Lawrence County | 45.9% | 9.5% | 22.7% | $17,406 | $4,865 | $14,725 |
| Lee County | 55% | 11.4% | 26.2% | $18,993 | $5,796 | $15,715 |
| Leslie County | 56% | 13.7% | 28% | $21,778 | $6,839 | $19,256 |
| Letcher County | 55.9% | 14.4% | 37.7% | $21,950 | $7,924 | $19,007 |
| Lewis County | 42.2% | 7.1% | 28.8% | $16,131 | $5,195 | $14,366 |
| Lincoln County | 36.3% | 4.6% | 19.6% | $14,534 | $3,773 | $12,272 |
| Livingston County | 35.3% | 6.5% | 22.1% | $16,172 | $4,517 | $13,968 |
| Logan County | 30.5% | 3.6% | 18.6% | $13,501 | $3,368 | $11,553 |
| Lyon County | 34.5% | 2.2% | 22% | $13,685 | $2,636 | $11,952 |
| McCracken County | 24.1% | 1.9% | 14.5% | $14,020 | $3,281 | $11,940 |
| McCreary County | 56.1% | 5.2% | 24.6% | $19,100 | $6,078 | $16,400 |
| McLean County | 29.6% | 4% | 15.8% | $15,208 | $4,443 | $13,058 |
| Madison County | 24% | 1.8% | 15.8% | $10,653 | $2,183 | $9,289 |
| Magoffin County | 52.8% | 9.7% | 23.2% | $21,818 | $7,605 | $19,043 |
| Marion County | 30.2% | 3% | 17.8% | $13,172 | $3,840 | $11,473 |
| Marshall County | 29.5% | 3.3% | 19.1% | $14,279 | $3,169 | $12,420 |
| Martin County | 60.9% | 18.7% | 37% | $19,449 | $6,189 | $17,003 |
| Mason County | 29% | 4.8% | 19.6% | $13,957 | $4,029 | $12,074 |
| Meade County | 21.4% | 1.6% | 18% | $10,014 | $2,248 | $9,223 |
| Menifee County | 45% | 5.4% | 26.4% | $17,886 | $5,237 | $15,685 |
| Mercer County | 27.6% | 2.5% | 17.5% | $12,210 | $2,476 | $10,411 |
| Metcalfe County | 42.1% | 7.5% | 27.8% | $15,380 | $4,237 | $13,616 |
| Monroe County | 37% | 1.2% | 19.1% | $16,535 | $3,975 | $14,445 |
| Montgomery County | 28.5% | 3.1% | 17.8% | $12,077 | $2,706 | $10,198 |
| Morgan County | 44.9% | 8.1% | 21% | $14,244 | $3,676 | $11,705 |
| Muhlenberg County | 36.9% | 6.9% | 24.7% | $14,844 | $3,808 | $12,661 |
| Nelson County | 21.8% | 1.4% | 12.4% | $11,610 | $3,091 | $10,066 |
| Nicholas County | 35.6% | 4.3% | 25.2% | $14,020 | $2,403 | $12,272 |
| Ohio County | 36.5% | 6.4% | 23% | $14,612 | $4,051 | $12,544 |
| Oldham County | 10.2% | 1% | 3.9% | $7,819 | $1,867 | $6,514 |
| Owen County | 32.6% | 4% | 21.4% | $12,891 | $2,316 | $11,163 |
| Owsley County | 63.2% | 9.1% | 29.7% | $28,538 | $11,486 | $25,443 |
| Pendleton County | 23.1% | 3.4% | 13% | $11,889 | $2,818 | $10,265 |
| Perry County | 48.7% | 12.3% | 30.7% | $21,011 | $6,145 | $18,081 |
| Pike County | 44.8% | 11.5% | 30.9% | $19,526 | $6,372 | $17,482 |
| Powell County | 41.1% | 2.3% | 24.6% | $15,353 | $3,290 | $13,177 |
| Pulaski County | 39.9% | 5.5% | 24.3% | $18,381 | $5,435 | $16,007 |
| Robertson County | 37.5% | 4.8% | 24.8% | $14,734 | $3,654 | $12,790 |
| Rockcastle County | 41.1% | 4.7% | 20.1% | $16,257 | $4,805 | $13,832 |
| Rowan County | 35.2% | 5.6% | 22.2% | $13,151 | $2,948 | $11,647 |
| Russell County | 31.4% | -1.4% | 15% | $15,947 | $3,942 | $13,653 |
| Scott County | 15.2% | 1.3% | 6.2% | $8,006 | $1,587 | $6,338 |
| Shelby County | 16.6% | 0.1% | 9.3% | $9,361 | $1,658 | $7,828 |
| Simpson County | 27% | 2.7% | 17.4% | $11,642 | $2,103 | $9,914 |
| Spencer County | 18% | 1.8% | 9.7% | $10,099 | $2,701 | $8,660 |
| Taylor County | 36.6% | 4.4% | 27.2% | $14,555 | $3,110 | $12,933 |
| Todd County | 25.2% | 4% | 12.8% | $11,904 | $2,871 | $9,957 |
| Trigg County | 32.6% | 7.2% | 21.4% | $14,503 | $3,685 | $12,569 |
| Trimble County | 26.8% | 1% | 18.3% | $12,933 | $3,176 | $11,559 |
| Union County | 33.4% | 6.5% | 23.5% | $16,290 | $5,975 | $14,479 |
| Warren County | 21.7% | 1.6% | 12.6% | $10,027 | $1,827 | $8,485 |
| Washington County | 29.8% | 3.2% | 19.3% | $13,470 | $3,485 | $12,021 |
| Wayne County | 44.2% | 5.3% | 23.3% | $16,268 | $4,553 | $14,097 |
| Webster County | 28.8% | 4.5% | 13.8% | $14,213 | $4,057 | $11,578 |
| Whitley County | 46.9% | 7.7% | 23.6% | $19,775 | $5,885 | $16,350 |
| Wolfe County | 53.9% | 3.8% | 27.8% | $23,604 | $7,674 | $20,718 |
| Woodford County | 17.2% | 2.1% | 11.3% | $10,763 | $2,770 | $9,403 |
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