I recently ran spending on a single season of production of a television show through IMPLAN. There were around 800 separate expenditures with different businesses and individuals for goods and services. Many of the services were for just a few days, weeks or months. There was sufficient detail on the nature of the spending that it was broken out into 112 events with different IMPLAN codes as types of industry output. So, for example, equipment rental expenditures were included as industry output under IMPLAN code 453, catering expenditures were included as industry output under IMPLAN code 511 etc. Perhaps I'm wrong but I think that this was probably the best way to do this.
According the IMPLAN results, the 12.6 million in production expenditures resulted in a total output (direct, indirect and induced) of about $21 million, about half of which was value added. It also resulted in 172 jobs and nearly $7 million in labor income. I would like to clarify that I'm understanding the employment output correctly.
- First, even though the production paid money out to many more than 172 individuals, IMPLAN is reporting that the overall labor income generated would support is the equivalent of 172 full time, annual jobs in those same industry sectors.
- Second, the labor income represents gross pay before taxes, correct?
- Third, is it accurate to say that the labor income ($7m) represents about one third of the total output ($21M)? I'm not an IO expert so I'm never really sure how to relate the labor income that's generated with the induced impact (in this case $3.9M), which is supposed to be the expenditure of wages as a result of the initial spending.
Thanks
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