Employment Estimates

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    jenny
    The employment numbers reported in the study area data include local residents and in-commuters. However, the SAM contains data on the average in-commuting rate for your region, so when you run an impact, the income of those in-commuters gets taken out before the impact is run through the multipliers. So while this income will be included as part of the direct labor income, it will not generate any induced effect in the local region.
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    harperrocklin
    Where can I view (and/or modify) the average in-commute rate?
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    jenny
    To view the commuting data for your region, go to Explore>Social Accounts>IxC Social Accounting Matrix. If the Employee Compensation column makes a payment to the Domestic Trade row, then there is net in-commuting into the region. The ratio of this value divided by the Employee Compensation column total gives you an estimate of the net in-commuting rate. If there is net out-commuting, the value will be 0 (in this case, there is usually a payment by domestic trade to households, representing those net out-commuters). Employment is merely descriptive, in the sense that it does not influence the indirect or induced effects (those are based on output and labor income, respectively). Thus, if your estimate of the proportion of in-commuting differs from the average for your region as reported in SAM, the easiest way to account for it is to remove the difference from Employee Compensation when setting up your impact. To determine what percentage to decrease Employee Compensation by, you can use the following equation: x = EC - EC*[(1-userCR)/(1-samCR)] where: EC = original, unmodified employee compensation userCR = your known commuting rate samCR = commuting rate reported in the SAM x = the percentage of EC you want to remove before running the analysis So the amount you want to remove from your original EC figure is x*EC. After the scenario has been run, add that same amount back to your direct EC effect since by definition EC occurs at the site of employment. This way, you correctly account for the in-commuters' direct effect, but you have made sure that they did not generate any further local impact.
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