Net in-commute rate

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6 comments

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    jenny
    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.
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    DougO
    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.
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    michaelm
    Doug, if I do that won't that reduce the income tax received by Oregon?
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    DougO
    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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    michaelm
    Doug, using that method, do I then return direct employee compensation back to its full amount for the final analysis as Jenny's method suggests?
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    DougO
    Yes, by definition employee compensation occurs at the site of employment.
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