Employment Multipliers
Hello, I have some specific questions on job impact in input-output equation.
Would you be able to explain how exactly job impact could be calculated?
Suppose that we have a typical input-output equation, X=inv(I-A)*Y, and I want to decrease the demand in one of industries (Y) and find the difference in total output associated with that demand change. In that case, how could the change in total output be translated into the change in job and value-added output?
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IMPLAN SupportHi All Multiplier derivations are based off of the Output multipliers based on the Leontief equation you have stated below. In addition to this we have regional Value Added data that allows us to setup the Value Added : Intermediate Expenditures ratios for each data set and values of employment from each region from this region. From combining this data we are able to create Output per Worker relationships from which we can estimate the number of employees needed per million dollars of Output. The employment Multiplier sheet's Direct, Indirect and Induced are actual jobs/ million dollars of production the resulting Type I and Type SAM multipliers are derived as follows Direct Employment + Indirect Employment/ Direct Employment and Direct Employment + Indirect Employment+ Induced Employment/ Direct Employment In regards to a decrease in production, the Model is linear so these same equations and multipliers apply. i.e. a positive or a negative change in demand will yield the same results with opposite signs.0
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