Income distribution

Hi Aaron, Labor Income impacts are spent the same in the exact same manner for each Industry type but are specific to each region. The distribution is based on the number of Households in each income category which can be viewed through the Explore> Study Area Data> Area Demographics. The total value of Labor Income is split across the Household Sectors based on their relative distribution of numbers of Households in the region. Once the value is split across the 9 Household Income Sectors then it is spent through their respective expenditure patterns. If you want to view these patterns, you can import them through Activity Options>Import> Institutional Spending Pattern and choose the Household Income categories that are of interest to you. Please let me know if this addresses your concern or if you have any additional questions.

Thank you for your response. You mentioned that "the total value of labor income is split across household sectors based on their relative distribution..." Specifically, I would like to track this distribution of labor income into household sectors. For example, if there is an increase in final demand for Agriculture, Forestry, etc, there will be an increase in labor income at some level, which will be distributed across the households. Is there a way to see which household income sectors received a given percentage of this increase in labor income? Thanks again!

Hi Aaron. In your Post, you say “is there a way to see which household income sectors received a given percentage of this increase in labor income?” We assume that you mean is there a way to see which household income groups receive a given percentage of this increase in labor income? If this is what you mean, then we would repeat some of the comments stated in an earlier Post. Those being Labor Income impacts are spent the same in the exact same manner for each Industry type but are specific to each region. The distribution is based on the number of Households in each income category which can be viewed through the Explore> Study Area Data> Area Demographics. The total value of Labor Income is split across the Household Sectors based on their relative distribution of numbers of Households in the region. Having said that, if you want to track the distribution of labor income across the 9 household sectors resulting from an increase in final demand for Agriculture, Forestry, etc., you could use the same distribution of households as described above and distribute the increase in labor income (obtained by exporting the Detail Results for Labor Income to Excel and summing the labor income values for Sectors 1- 19) resulting from a final demand change in agriculture across the households accordingly. We assume that you want to see which households would most benefit and by how much from a change in final demand for agriculture in your region. We hope this answers your question.

If I'm understanding correctly, an increase in labor income in the commercial logging sector would be distributed in the same pattern as an increase in labor income in the funds, trust and other financial vehicles sector? Thanks again.

Hi Aaron, We apologize about the delay in the response. That is correct, we don't have a way through the Labor Income Change Activity to split the payments of labor other than based on the area demographics, so all Industries within the region incur the same split. That is why however, we provided the ability to 'edit' it by running Household Income Change Activities or Household Spending Patterns, if you know the income ranges of your specific firm's employees. The underlying assumption is that based on the mix of all firms in a region within a give Sector definition, and the mix of all the employee types and pay grades within each firm, the area demographics split for Labor Income payments is a logical and fair assumption with which to break labor payments down for the Induced spending. If you need more information on using some of these other Activity types and how you would alter you Industry Change Activity to work with know data for a firm's wage rates, please let us know, and again we apologize for the delayed response.