Impact of non resident employees
I am analyzing the impact of 600 employees in an urban county. My level of analysis is this county. I know that about three quarters of these employees do not live in this county. What adjustments do I need to make to accurately reflect the induced impacts of the company’s operations?
Hi Ruth, Thank you for your post! Our recommendation since most of the employees do not live in the county where they work is to also use the county(s) where most of the employees are living. This way you are also capturing their Labor Income spending which will be reflected in the Induced Impact. Another option if you have the data and can quantify the Labor Income split, you can setup an MRIO (Multi Regional Input Output) with a Labor Income Change in the second county. Or if you do not have the data or don't want to have both counties considered because of the audience; you can reduce the Labor Income by the amount of the non-local households and then use a per diem spending pattern for returning income. If none of the above are workable, the best thing to do is leak all the non-local income. In all these the reduction of local Labor Income should be tempered by the amount the Model is already removing. This article will assist in reducing the Labor Income: http://implan.com/index.php?option=com_content&view=article&layout=edit&id=254 Thanks!
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