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Wholesale jobs

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aarshad
Hello, I have a client who has a gun club and will be buying $1 million worth of guns and ammo. I am assuming that they will buy it from a wholesaler. I used the retail sales margin. So to look at the impact I used sector 319 (I have 2012 data for King County, Washington). The output deflator is 1.023 and output per worker is $230,912. So in constant dollar the spending comes to $977,517. So if I divide this by output per worker, I get the direct job = 4.2. The Type I employment multiplier for this sector is 1.370298 and Type SAM employment multiplier is 1.808018. To get the indirect jobs, if I multiply 4.2 by .370298, I should get 1.5 indirect jobs, and if I multiply 4.2 direct jobs by the difference between SAM and Type I multiplier I should get 1.8 induced jobs. (When I previewed the final demand for this sector it was showing $977,207.69). However, the IMPLAN software gave me 4.2 direct jobs, 0.1 indirect jobs and 0.1 induced jobs for sector 319. Why is there such huge disparities in indirect and induced jobs? Thanks for your help!
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    IMPLAN Support
    Hi Ali, If you know what is being purchased it is typically better to impact the production Sector and apply Margins to that production Industry. You can then zero out the retail Margin and rebalance the remaining impact to reflect wholesale rather than retail sales. [url=http://implan.com/index.php?option=com_content&view=category&id=324]This article [/url]describes the basis of this process and how to properly setup this type of impact. The reason you are seeing the perceived discrepancy is that the actual value applied to the Multipliers is much less than the $1MM of your wholesale purchase. This is because the wholesaler is only one part of the Value-Chain that results in the sale of the wholesaler to your customer. Thus a wholesale Margin is applied to the $1MM prior to it's being applied to the Multipliers and the value of analysis is much smaller than that of Industry Sales. This is appropriate because the wholesaler will only keep the portion of the sale that is appropriate for their operations. Likewise by choosing Sector 319 you are only seeing the impact of wholesale functions in your region. You can view the Margin that goes to wholesalers in the Event Options> Edit Event Properties>Margins> Edit screen. The Multipliers you are viewing in the Multipliers sheet are per million dollars of wholesale production, not wholesales sales. Hopefully this helps, please let us know if you have any additional questions or concerns.
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