Net in-commute rate
I am trying to describe the loss of payroll that's due to net in-commuters for a particular industry change in my state (Oregon). I looked in Social Accounts>IxC Social Accounting Matrix>Aggregate SAM and looking down the the Employee Compensation column, I see the compensation divided amongst the households, followed by some government and corporate payouts, and finally an amount for Domestic Trade. Is this amount the loss, or leakage, of payroll due to the net in-commuters? In this case for Oregon, model year 2009, I see $5.136 billion in Domestic Trade out of a total of $87.410 billion in total Employee Compensation. Does this mean about 5.9 percent of employee compensation leaves the state in the model due to net in-commuters?
And as a follow up, if I wanted to show a stronger effect of in-commuters for my industry change, say 25 percent, how would I go about modifying this in IMPLAN? This would result in a smaller induced effect, but the same direct and indirect effects, is that right?
Thank you!
-Mike
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Hi Michael, You are correct in your interpretation of Employee Compensation leakage due to net in-commuting. The easiest way to account for increased in-commuting is to remove those extra in-commuters' portion of Employee Compensation from the direct Employee Compensation impact and move it to Other Property Income (OPI). Technically, OPI is corporate profits but IMPLAN treats all corporate profits as a leakage, so that proportion of the Employee Compensation will be leaked from the region. After the scenario has been run, remove that same Employee Compensation amount from the OPI and add it back to Employee Compensation - by definition, Employee Compensation occurs at the site of employment so you want to account for the in-commuters' direct effect, but you have already made sure that the in-commuting portion did not drive any further local impact. -
If you are using version 3, there is a simpler option, which is to edit the event directly in impact analysis. When you specify "Industry Sales" or "Employment", the employee compensation field will be filled based on the study area output/employee compensation relationship. If you edit this field (eg, lower by 10% for in-commuters). The induced effect will reflect the edited value. This edit only applies to the directly affected industry - indirect and induced effects on the same sector will reflect the study area averages. -
Yes. You will need to increase the direct Tax impact report for employee comp (column) and household income tax (cell) by a ratio to counteract the percentage reduction of employee compensation in the event. Or calculate the labor income tax for the labor income exterally to the software.
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