Analysis of workforce programs

I am doing an analysis of workforce training programs. What is the best way to measure the economic contribution of job placement programs - should you treat the income of the placements as a change in household income - and thereby only have an induced impact - or should you import households as an institution and put in the income - and then you get the direct, indirect and induced impacts. The results are similar - but not identical? Also - to confirm - in version 3 you should enter the actual change in income - while - if I remember correctly - you needed to use PCE or DPI in Version 2.0.
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  • If your income figure is loaded payroll (wages + benefits), you'll actually want to use a Labor Income Change. With a Labor Income Change Activity, the software will remove payroll taxes, social insurance taxes, commuters, personal taxes, and savings according to the rates reflected in the SAM for your region. The Household Income Change option is useful for when the income comes from some other non-labor source. With a Household Income Change, the software will not remove payroll taxes, social insurance taxes, or commuter spending, but will still remove personal taxes and savings. A Household Spending Pattern (Activity Options > Import > Institution Spending Pattern) assumes that households spend the entire amount (no taxes or savings). Note: If the trainees had part-time jobs or were receiving unemployment payments prior to this job placement, you will want to net these out before entering your income figure or at least acknowledge in your report that your analysis does not take into account the loss of these sources of income.
  • All I have is the individual's income not the loaded amount with benefits - does your answer change if I am trying to measure the impact from the perspective of the individuals increase in earnings - not the employers?
  • So you have the employees' take-home pay? In this case, a Household Income Change would be most appropriate. Otherwise, you would be assuming no savings or personal taxes. Or, if you wanted to see Direct, Indirect, and Induced, you could apply a disposable income factor to the income and run that as a Household Spending Pattern. To calculate the disposable income factor, go to Explore > Social Accounts > IxC Social Accounting Matrix tab, go to the household column of interest and divide the sum of payments to the Commodity Total, Foreign Trade, and Domestic Trade rows by the row total. Multiply this factor by your income figure to get disposable income.

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