Sector 31 employment multipliers

I notice that my employment multipliers for sector 31 (electric generation, transmission, and distribution) are huge - 3 to 4. In most other analysis I see 1.3 to sometimes over 2. Why would this sector have such large employment multipliers? The wage and VA are large but not huge. I thought I'd read that 1.3 to 1.9 are typical. Thanks.
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  • Hello, Which data region and year are you using?
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  • Region doesn't seem to matter much. I typically do it at state level(MN, Miss, etc), but sometimes combinations of states. I don't have any area lower than state with my package. I'm using 2011 data v3 purchased in 2013.
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  • Hi Ryan, The range you describe is relevant only to Output Multipliers. Typically we say that county level data should have Output Multipliers between 1-2, state between 1-3. But these are general ranges and the values can range. It's important to remember that unlike the remaining factors Employment had no direct tie to a dollar value, and thus Employment Multipliers are all derived per million dollars of Output. As you can imagine this makes Employment Multipliers the most widely variant value ranging in the MN 2011 Model from a Direct Effect of 128 jobs/$1MM to a Direct Effect to 0.08 jobs/$1MM. All based on how many jobs are needed to support a million dollars of production, for petroleum refineries it is less than 1 whereas for a million dollars of tongue depressors you might need several hundred. These relationships are based on productivity and the value of the commodity sold. The final Multipliers (Type I and Type SAM) describe jobs/Direct job. So these also can vary widely. Using refineries again, because the denominator is very small the Type I Multiplier for this is over 7 and the Type SAM is over 11. This indicates that for every job in petroleum refining approximately 6 jobs are supported across all round of all supportive Industries (1 Direct job + 6 Indirect jobs) and an additional 4 jobs in the Induced impact across all Industries and all rounds. (Summing to 11). Conversely a high Direct job count will tend to create a lower Type I & Type SAM Multiplier because on a job/job basis there are typically less Indirect and Induced jobs per Direct job. Hopefully this helps --Implan Support Staff
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