County Income Multipliers Higher than State

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ssieger

• December 04, 2015 19:53

We have run labor income multipliers for Montgomery County, Maryland as well as the State of Maryland and the County multipliers are significantly higher than the State. If a project generates the same direct spending in the County (and by default in the State), how can it create more income in the County than the State overall? Can you explain or offer any insights? If it is easier to discuss by phone, feel free to call me.

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  IMPLAN Support

  • December 08, 2015 20:47

  Hi Susan! Thank you for your post. It is not uncommon for the Labor Income per Worker values to be higher at the County than at the state. As the County may specialize in this particular industry, driving up the per worker value as the state is an aggregate of all per worker values from all counties. Or event higher living costs or firms that have higher values of production or need more skilled workers in one region might also contribute depending upon the industry. You can view the Labor Income per worker values in the software (Explore > Study Area Data > Industry Summary). For your particular situation we recommend using MRIO (Multi Regional Input Output). This allows you to demonstrate how an impact in your Study Area disperses into other regions and allows you to see how these effects in surrounding area create additional local effects. 

  https://implanhelp.zendesk.com/hc/en-us/articles/115009505707-General-Information-About-Multipliers

  https://implanhelp.zendesk.com/hc/en-us/articles/115009668588-Aggregation-Bias

   

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