Self-employment and proprietary income
I have two questions:
(1) Does proprietary income include returns to labor and capital?
(2) I've read that employment figures include wage and salary employees plus self-employed jobs. How can I obtain the number of self-employed people from the employment figures at the state and industry level?
Kindly,
Juan Monge
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1) Proprietor income consists of payments received by self-employed individuals and unincorporated business owners. This income also includes the capital consumption allowance and is recorded on Federal Tax form 1040C. 2) There is no direct way in IMPLAN. We use BEA state-level data and distribute to the finer geographies. BEA state-level data: SA25 - Total Employment SA27 - Wage and salary employment SA05 - Total Income SA06 - Employee Compensation Proprietors = SA25-SA27 Proprietor Income = SA05-SA06 -
I recently authored an article published in [i]Economic Systems Research[/i] modifying regional IMPLAN SAMs and reallocating the labor and capital portions of proprietor's income into their respective accounts for different regions in the US. I used the public datasets that you suggested (i.e. state-level BEA data) to regionalise the estimates. This simplifies studies involving markets for factors of production since the procedure converts the standard IMPLAN income components into rents paid to the conventional primary factors (i.e. labor and capital). The article can be found in the following link: www.tandfonline.com/eprint/tJJbUbzpA4w2GmTwZaBB/full I have made the GAMS code implementing the method freely available for download at: http://afpc.tamu.edu/pubs/15/592/sam_code.zip Users will need their own IMPLAN data, but will be saved the extensive work required to collect detailed land rent and other data, and the complex work required for all data manipulation.
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