Child care Multiplier and comparison
I am making a case for new childcare openings in Tennessee and have two questions (which will clearly demonstrate my inexperience at this): 1. To estimate the impact of a number of new childcare openings, I want to know if I'm figure this correctly: cost is $538,605 x 1.79 (the output multiplier Type SAM) = total output and for employment 23 new positions x 1.24 direct employment = 28 jobs total? 2. Then to compare the impact of investing in other industries versus childcare, I'm at a loss. I have all the multipliers in the 487 report but how do I calculate using the Type SAM figures childcare compared to other industries? Childcare is not in the list but it's a childcare report... It appears they would each be higher than childcare, but I know that would not be logical, especially when 2000 IMPLAN figures show childcare is the highest or nearly the highest multiplier across industries. I'm sure I'm not understanding this properly and really appreciate some help. Thank you.
Thank you for your post. 1. You are correct in your Output calculations. In regards to deriving an Employment value this depends on the value you are starting with. If you are using column 4 then you are right on! If you using column 3 then.... "Each entry in column 3 represents total change in number of jobs that occurs in all industries for each additional 1 million dollars of output delivered to final demand by the industry corresponding to the entry. Because the employment multipliers are based on regional data, the output delivered to final demand should be in regional year dollars." In your example: 1.24 direct employment Multiplier cost is $538,605 x 1.79 (the output multiplier Type SAM) = 964,102.95 Employment would be less than a part time job. 2. The report that I believe you are referencing, shows the 'Detail Multipliers' across these Sectors (i.e. how much of the total SAM Multipliers go to each of the listed Industries). This shows the distribution of backward linkages across supporting Industries to childcare but this report is specific to childcare. You can compare childcare in different states, but not to other Industries. If you wanted to compare it to other industries you would need to purchase the regional report for TN, which would include all Industries in the state of TN. Thanks!
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