We are modeling the impact of a coal mine in a rural county (industry 22). By far the largest indirect impact is in industry 38 (Support activities for oil and gas operations) in terms of labor income. The labor income is about $8.25 million while there are only 16.2 jobs being created. This would assume that each person was getting paid more than one half million dollars per year for these support activities. My question is two-fold: 1. Since there does not seem to be support activities for coal specifically in IMPLAN, I assume that it is looking at the parts of industry 38 that would fit, and IMPLAN is allowing those services to be met with industry 38? 2. Coal mining jobs in this County are the among the highest paid jobs in the area. It would seem inappropriate to pay the contracted support services so well for this job. The curious part is that most of the Indirect Value Added is Proprietor Income and not Employee Compensation. I assume that this is then the companies that are contracting out their workers to do these "support services" since almost 90% of the money goes to Proprietor Income. If I look at the Study Area Data under industry 38 I see that the pay per worker is slightly less than the National average (which we would expect for a rural area) but the Proprietor income is more than 68 times as high as the National per worker average ($472,595 vs. $6,936). A potential fix would be to change the local Value Added pay per worker for Proprietor Income to match the National average which would greatly reduce the Proprietor Income. Thank you for your time and support.
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