University & Seperate Employee Payroll Impact
I've run an analysis on a public university operations by editing the area private sector education (sector 392) using operations budget and employment data (zero other income and indirect business taxes). No problem.
Now I would also like to show separately the impact of the university's employee spending. Would the correct methodology be to use wages and benefits data as a labor income change using Sector 5001 Employee Compensation?
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IMPLAN SupportHi Tom, You can do this. But if you want to separate out the operational expenditures from employment, we recommend the Analysis By Parts methodology. This is where you separate out the labor income spending from what the college purchases (intermediate expenditures). For those Intermediate Expenditures, you will want to import the industry spending pattern for sector 392 through the Setup Activities > Activity Options > Import > Industry Spending Patter > menu. The further instructions in example form are found in the article [url=http://implan.com/v4/index.php?option=com_multicategories&view=article&id=730:case-study-analysis-by-parts&Itemid=71]Case Study: Analysis By Parts[/url], and under Task B. You are correct when using the 5001, which is found in #3. This method also will allow you ignore the OPTI, IBT and PI that may be part of the public Sector. If you are just trying to demonstrate what portion of the impact comes from the employee spending, the method you described below, will allow you to demonstrate the contribution employees make to the local economy. However, you will want to be sure that you DO NOT COUNT BOTH or sum these two impacts together in any way, because this would be double-counting the employee contribution to the region. One other note, if there were any proprietors in your region for Sector 392, you would want to zero out the Proprietor Income value as well, in regards to your current methodology.0 -
Excellent. My concern was the client might do the summation themselves with my initial methodology, which I knew would be wrong. The Analysis By Parts will circumvent this concern. Many thanks.0
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IMPLAN SupportGlad we could help!0
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