Industry revenue

Hello Maria. In response to your question, it would be helpful to know what is the current wage-bill in order to derive the dollar amount of the wage increase. For example, if your intent is to model the impact of a 5% increase then you would multiply your current wage bill times 5% to determine the amount of the wage increase. Or, you could use the EC estimate for your region or sector that IMPLAN shows in the study Area Data section of the model as a basis for determining the amount of the wage increase. Another way if you know the current employment level, would be to run an Industry Change activity using your known Employment figure and let IMPLAN fill in the rest of the values (including Employee Compensation). From there, you could take 5% of the Employee Compensation (EC) value that the model estimates as your proxy for the wage rate increase. Using your logic about the amount of industry revenue that would have to be set aside for the wage increase, you could subtract the wage value from the region or sector’s total output to get an estimate of adjusted output/revenue. If this is your approach, then you might consider doing a NET Analysis whereby you have two events and two scenarios. The first Event would reduce the Output of your target industry by the amount of the wage increase and analyze the scenario. The second Event would not change the industry Output but model an increase in Employee Compensation by the dollar amount of your estimated wage increase. To obtain the NET impact of these two scenarios, you would create COMBINATION scenario and include the activities from Events one and two. When you run the COMBINATION scenario, the results will reflect the net impact of reducing industry Output by the amount of the wage increase in order to give the wage increase in the region. To view the results from a wage increase, you would navigate to Scenario Results>Detail Results>View By. The ”View By” is a dropdown menu that allows you to view results by employment, output, labor income, or value added. As it relates to your specific question about where to see the increase in sales activity by services and goods, you would want to view by “Output.” Please let us know if we can be of further help to you.

Hello Maria. In response to your question, it would be helpful to know what is the current wage-bill in order to derive the dollar amount of the wage increase. For example, if your intent is to model the impact of a 5% increase then you would multiply your current wage bill times 5% to determine the amount of the wage increase. Or, you could use the EC estimate for your region or sector that IMPLAN shows in the study Area Data section of the model as a basis for determining the amount of the wage increase. Another way if you know the current employment level, would be to run an Industry Change activity using your known Employment figure and let IMPLAN fill in the rest of the values (including Employee Compensation). From there, you could take 5% of the Employee Compensation (EC) value that the model estimates as your proxy for the wage rate increase. Using your logic about the amount of industry revenue that would have to be set aside for the wage increase, you could subtract the wage value from the region or sector’s total output to get an estimate of adjusted output/revenue. If this is your approach, then you might consider doing a NET Analysis whereby you have two events and two scenarios. The first Event would reduce the Output of your target industry by the amount of the wage increase and analyze the scenario. The second Event would not change the industry Output but model an increase in Employee Compensation by the dollar amount of your estimated wage increase. To obtain the NET impact of these two scenarios, you would create COMBINATION scenario and include the activities from Events one and two. When you run the COMBINATION scenario, the results will reflect the net impact of reducing industry Output by the amount of the wage increase in order to give the wage increase in the region. To view the results from a wage increase, you would navigate to Scenario Results>Detail Results>View By. The “View By” is a dropdown menu that allows you to view results by employment, output, labor income, or value added. As it relates to your specific question about where to see the increase in sales activity by services and goods, you would want to view by “Output.” If you are simply looking at analyzing the impact of a change in Employee Compensation (i.e., wage increase), you could simply model it as a Labor Income Change. Labor Income Activities are used to estimate impacts of changes in Employee Compensation and Proprietor Income when they occur over a wide range of industries, which may the case you are dealing with. Here is you would set the Labor income Change up. 1. Setup Activities screen. 2. Create A New Activity “Wage Increase”. • In the New Activity screen, select Labor Income Change from the Activity list, name the Activity, leave Level at 1.00 and save. 3. Create a new Event for Sector 5001 Employee Compensation. 4. Enter your wage value into the Labor Income Value field. 5. Create a "Wage Pay Increase" Scenario. • Leave Level at 1.00. And select “Wage Increase”. 6. Analyze Single Region 7. View results. Please let us know if we can be of further help to you.

The wage amount that we are trying to get to is $15.00. I am actually not sure how to factor that in, in order to know the total amount of the wage increase. Your help will be greatly appreciated.

Hi Maria. We are still evaluating several possible options for you to consider in deriving a crude estimate of the total wage bill increase from raising the wage rate to $15 per hour increase in your study region. We will respond as soon as we have an option that might be worth considering.

Hi Maria. There is not an easy way to do what you want done, absent some real data on salaries and wages in your study region. Here is another way, albeit crude, for you to attempt to get at this issue. First, you would find out the average salaries and wages per worker in my area. Second, you would take that figure and divide it by 2,080 (the total number of work hours in a calendar year) to get the average wage rate per hour in the region. Third, you would go to the Explore>Study Area Data>View By: Industry Detail>Area Demographics and get the breakdown by of total population by household income. Fourth, you could take the upper end of each income range compute the average wage rate per hour to compare to your desire hourly rate of $15.00 per hour. Fifth, take those household income groups whose average wage rate is less than $15 per hour and compute their new salary figure by multiplying 2,080 times $15.00 per hour. Sixth, this will give you what their new salary levels will be at $15.00 per hour. Seven, compute the salary difference between each household income group Old salary and their new salary. Eight, take the salary difference for each household income group and multiply it times the percentage of number of households in each income range times the region’s total employment for those household who make less than $15.00 per hour. Finally, sum the total figures for all workers who make less than $15.00 per hour to get a rough estimate of the increase in total wages to brink those household up to the desired wage rate. If you are looking at a specific industry in the region, this crude procedure would apply as well. We are trying to set something like this up in an Excel Spreadsheet but it will take a little time to get the template programmed to do the computations outlined here. You can follow some of the procedures outlined in previous Forum Posts in the impact of this policy.