Prevailing Wage

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    IMPLAN Forum
    Hi Dominique! Thank you for your post. When Modeling a construction impact, you have the option to Input a value into 1 of 4 fields into the Software. Industry Sales= Total Construction Cost which includes the Intermediate Expenditures and Payroll. This payroll value is to include a fully loaded payroll of; taxes and benefits. If you know the wages for your specific project, we encourage you to overwrite the Employment Compensation and Proprietor Income values with your known project values. However, if you don't know these values IMPLAN's estimate is based on the average wage rates reported for the specific data region (ZIP Code, county, state) of your Model for the year of your data set, thus if there is a variance between this and a reported prevailing wage for your region, it would be up to your discretion whether or not to use that wage over the IMPLAN estimation. We would recommend that if you do change the rate, you note that in your report. Thanks!
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    Alex Lantsberg
    Hi Dominique, I encourage you to stick with the defaults unless you've deconstructed the construction industry in IMPLAN or have worked with construction labor economics before. The overwhelming preponderance of the research shows no cost differentials between public projects with and without PW so your total spend shouldn't change. there may be some internal shifts from materials to employee compensation but their overall impact won't be incredibly large unless you start working with very large project amounts. If you'd like to dig more into the intricacies of PW and IMPLAN I encourage you to go to www.smartcitiesprevail.org and take a look some of the work we've done with state-level analyses in CA, MI, & WI
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