Fixed labor costs
Does IMPLAN in anyway take into account fixed labor costs for a change in output? Or at any level would a change in output be expected to have a linear change in both employment and labor income. For example if output decreases by half for an industry, would employment and labor income drop in half also? And this would be true for any change level. I think this is the case, but I was asked to confirm.
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There is a linear relationship between output, employment and labor income. So any change in output would lead to a change in employment and labor income. However, you could model a fixed employment and labor income scenario by setting your event value to your output change and then set your employment, employee compensation and proprietor income to 0. This effectively says that your direct employment and labor income change will be 0 or fixed. The indirect and induced effects will still have employment and labor income changing.
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