Household Income Levels
Hello,
Would anyone happen to have an explanation of why certain impacts (employment generation, total output, etc.) increase as the household income level decreases?
I'm working on a household income change project and I noticed if I enter the same sum of money for two different household income levels, the lower income level produces greater impacts for a respective economic model or area.
Thanks in advance for any help/advice!
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IMPLAN SupportHello Ross, There are a couple of reasons this could be happening. Can you let us know what Household Income Categories you are comparing and seeing this change in and what region and data year? Thanks,0 -
Thanks for the response. I'm entering in a sum of money for a "Household Income Change." The household income levels I'm comparing are $35k-$50k, $50-$75k and $75-$100k. The year of data is 2013 and event year is 2014. As the household income levels increase, the employment generated, labor income, value added and output decrease. I'm assuming that is because there is more leakage with the higher income households as they spend outside of their respective economic area more often. I'm looking at Counties in California and the state as a whole.0
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IMPLAN SupportThank you for your post! They actually will spend outside the region at the same rate as other income groups because the RPC's are constant in IMPLAN. However they could have higher coefficients in spending in certain categories with high leakage. One way to examine this to import the Household Spending Pattern. But the largest drive likely is savings and investments, as higher income households have the ability to put more back into these. Since IMPLAN is a production Model these are viewed as leakages. This article will describe how to calculate the rates:http://implan.com/index.php?option=com_content&view=article&id=464:464&catid=329&Itemid=1588.0
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Makes sense! Thanks for the information.0
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