I'm currently running an analysis to look at the impact of changing the salaries of faculty at public community and technical colleges around Washington State and I keep second-guessing myself about the process! I'm running a labor income change activity with an employee compensation event, plugging in the difference between the current salary and adjusted salary (expressed as a total salary outlay, so the total difference in pay for that area). The problem is that this only yields induced effects and I'm struggling to figure out how to calculate the direct and indirect effects separately. Some stuff I've read on the forums here indicate I should use analysis-by-parts, but I'm not sure how to make that applicable. I know that part of the direct effects are just the difference in pay, but I'm wondering how to look at effects on taxes.
Separate, but related - the models we've been using are not of the whole state, but of different workforce areas around the state (made up of a cluster of counties). Should I be worried about any spillover effects into the rest of the state/outside of the state especially with induced effects and how can I account for those if so?
Sorry if the questions are basic, I'm still a little new to IMPLAN and this kind of modeling. Any help is appreciated!
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