Treatment of industry wages
I am conducting an analysis of the impact of recycling centers. Per your recommendations at the training last January, rather than use a set industry group (such as #460), I am using existing survey data on recycling center expenditures in several categories, as well as survey data on recycling center wages (divided into three household income levels and adjusted 65% for disposable income). I am running the model in two steps, once with just the recycler expenditures as a group, and once with the three wage expenditures. Am I correct in treating all the wage expenditures as induced impacts? For example, when you enter $61.5 million in disposable household income, the indirect effect is $16 million, and the induced effect is $17.3 million. However, I think I should combine this $94.8 million, and add it to the induced effect from the recycling center expenditure run, since all $94.8 is really employee expenditures?
I have questions about how to treat the value added component also, but I'll start with this. Thank-you.
Was this post helpful?
-
You are correct, the total impact of payroll expenditures is all induced effect, except for output. In output you have to substract all payments to the institutions (which by definition are leakages but are included so that the user can see what happened to all specified impact value). The institutions show up at the bottom of the impact report - sectors greater than 509.0
-
You are correct, the total impact of payroll expenditures is all induced effect, except for output. In output you have to substract all payments to the institutions (which by definition are leakages but are included so that the user can see what happened to all specified impact value). The institutions show up at the bottom of the impact report - sectors greater than 509.0
Please sign in to leave a comment.
Comments
2 comments