Labor income on film study

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mrhaynes

• December 09, 2022 14:29

We are working on an impact of film projects. The projects aren’t done by local businesses, but other production companies coming into the area. We are currently treating all spending on these projects as industry outputs and the wages as labor income. All of the people being paid are local crew who are not a part of the company putting on the production. We are wondering if we are supposed to also add the wages to the direct effects in addition including them as labor income.

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  Candi Clouse, PhD

  • December 12, 2022 14:13

  Hi there!

  The film industry is a tricky one to model. I would recommend that you utilize the new Industry Impact Analysis (Detailed) Event Type and add in the spending and income in one event. For example, you want to model spending on a costume company that comes into your region. They might have $25,000 in sales; $20,000 of which is for salary. Using the Industry Impact Analysis (Detailed) Event Type, you can enter $25,000 in Output and $20,000 in Labor Income for Industry 124 Cut and sew apparel contractors. Remember, even if the firm is from out of town, while they are in town working on the set, they are considered local as that spending happens in your region.

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