Inflating inputs for future years
I'm working on estimating the state-wide impacts of earnings by graduates from a New Jersey community college, over time. To do so, I have estimated the number of graduates who will work in-state, and taken average entry level salaries for applicable jobs related to their fields of study. I am modeling the activities and events as industry changes within the related industry categories, under the three-digit NAICS aggregation scheme, using in-state graduates for "Employment" and then customizing the event by modifying "Employee Compensation" to equal the product of total graduates times average annual entry-level salary.
For example, 81 Registered Nurses in the Class of 2011, with average entry-level salaries of $61,053 each, would be modeled as:
398 623 Nursing & residential care
Industry Sales: $5,796,090.50(generated by IMPLAN)
Employment: 81
Employee Compensation: $4,450,764.00 (customized: 81 employees*$61,053 avg salary)
Proprietor Income: $121,762.70 (generated by IMPLAN)
Event Year: 2011
I want to repeat this calculation for future classes (Class of 2012, Class of 2013, etc). I know I need to change the event year, but do I also need to inflate the figure for average entry-level salary (and, consequently, the figure for Employee Compensation) to match the new event year?
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If you want to model the impact of just the earnings, you would need to: 1) Convert salaries to employee compensation (add in benefits and employer paid taxes) 2) Apply the compensation as a Change in Labor Income activity type. By entering the employment and letting the software derive the industry sales, your are getting the impact of the entire nursing operation (compensation plus office expenses and any other intermediate spending involved in nursing). This assume thats the nursing industry could not operate without the local New Jersey graduates. To model future salaries, you may continue to enter the compensation associated with $61,053 as long as you use the "Year": 2011. You may then report the impact in the year of the occurence to see the 2012, 2013, etc dollars.
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