Direct Labor Effect

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poquinn

• January 12, 2011 20:47

I am running into an interesting occurrence with respect to the direct labor effect. When I manually enter the wage for 150 workers in sector 338 at 50k/year (7,500,000 employee compensation) the direct labor effect ends up at $11,166,884. In most of my previous experiences running IMPLAN these two values are almost always equal or close. There appears to be an almost $4mm difference. Please explain. When I enter in the same variables for IMPLAN sector 286, the employee compensation is equal to the Direct Effect for Labor Income ($7.5MM), as I would expect. ??? Thanks in advance for your response.

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  DougO

  • January 12, 2011 21:03

  This means there is ~4 million in proprietor income for sector 338 and close to zero for ssector 286. Labor income = Employee Compensation plus Proprietor Income. If you wish the value you enter to be the entire labor income, then you will need to set proprietor income to zero.

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  poquinn

  • January 12, 2011 22:37

  Thank you.

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