OWERS: INCOME ESTIMATES AND RETURNS IN SALMON FISHERIES 



TABLE 4. — Number of permits required to produce reasonable returns assuming earnings from fishery 

 considered are equal to wages paid in an equal time period in contract construction. The average wage in 

 contract construction in 1973 was $378 per week. 



'Reasonable returns cannot be achieved with a 45% reduction in entry permits. 

 Reasonable returns can be achieved with the present number of entry permits 



fisheries, with the exception of Cook Inlet, are 

 capable of providing a comparable rate of return 

 with either the present maximum number or a 

 modest reduction. 



Comparison With Total Annual Earnings 

 of Nonfarm Workers 



An equally important objective of limited entry 

 may be to bring the total income of fishermen up to 

 levels comparable to the average earned by all 

 workers in Alaska. It has been tacitly accepted 

 that earnings in the fisheries, particularly in 

 areas where few other employment opportunities 

 exist, can be lower than in other segments of the 

 State's economy. The continuation of this policy in 

 the future probably makes little sense. As Alas- 

 ka's economy develops, a more reasonable ap- 

 proach is to provide vocational training to resi- 

 dents of the State in areas of traditionally high 

 unemployment so they can find employment in 

 other sectors of the economy. If this approach is not 

 adopted, it can be expected that job openings in the 

 future will continue to be filled by trained persons 

 from outside the State. In achieving increased in- 

 comes from the fisheries it should also be pointed 

 out that a reduction in entry permits under the 

 Alaska law will be achieved through a voluntary 

 buy back of permits and vessels spread over as 

 many as 10 yr. Thus, older persons in the fisheries 

 that would have trouble finding other employment 



need not be displaced. Furthermore, a person who 

 voluntarily sells to a buy-back program will re- 

 ceive a cash settlement that will ease the transi- 

 tion period. 



A comparison can be made with the average 

 incomes earned in other employment in Alaska. 

 Estimates of total income include income from 

 other fisheries and nonfishing employment. Be- 

 cause of the seasonal nature of salmon fishing, it is 

 anticipated that many permit holders will con- 

 tinue to seek other employment when it is avail- 

 able. 



Statistics collected by the Alaska Department of 

 Labor show that average nonagricultural wage 

 and salary earnings in 1973 were $l,006/mo, or 

 $12,072/yr (Anonymous 1973b). Table 5 compares 

 the number of operating units in each fishery that 

 would be required to provide fishermen with a 

 level of earnings equal to the state average. It is 

 assumed that any increase in earnings will come 

 from the particular fishery being examined. 



With the exception of the small Prince William 

 Sound set net fishery, none of the set net fisheries, 

 the Cook Inlet and Prince William Sound drift gill 

 net fisheries, or the power troll fishery could pro- 

 vide this level of income with even a 45% reduction 

 of entry permits. The purse seine fisheries, with 

 the exception of Cook Inlet, and the southeastern 

 and peninsula drift gill net fisheries would provide 

 a reasonable income with either the present 

 number of operating units or a modest reduction. 



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