Gross Income

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Mdboyd15

• November 01, 2018 15:33

I am currently imputing gross wages from a local nonprofit into Implan and have tried this two different ways. I first tried to input the wages as a labor income change; and I also tried to put the wages in as a household income change. I created a scenario for each activity and then ran both attempts. Both gave results, however, the results were completely held within the induced effect while the direct and Indirect effect for both was $0. Have I selected one of the correct activities to input gross wages and if so, why is there no direct or indirect effect shown?  

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  Brian Barlow

  • November 02, 2018 13:00

  Hello,

  Gross (fully-loaded) Wages should be input as a Labor Income Change since running a Labor Income Change will estimate how much of the Labor Income inputted is payroll tax. It will also estimate a portion as payment for net in-commuters if the region has a net in-commuting rate. Learn more about commuting and adjusting for your own known commuting rate here. What is leftover will be treated as Household Income, splitting up the remaining income across the households based on the household population distribution. By household income range, IMPLAN identifies the dollars going to savings and personal taxes. If you'd like to model the income in a specific household income group, a Labor Income Change is not the best fit but if what you have is a Labor Income amount, that dollar will need to be adjusted before it is modeled as a different type of income or spending activity. You'll find info on all the Activity Types here.
  
  The reason you do not see Direct Effects is because Direct impacts are only generated by modeling Final Demands.  Labor Income and Household Income are assumed to be the payment of an employer to an employee which is not a final demand. However, households spending their money is a final demand, hence if you were to use a Household Spending Pattern, you would see values in all three Effects. 
  
  There are no Indirect Effects because you have not modeled any business-to-business spending. If you have information about how the non-profit spends money on inputs for its operations, you could model this using a Spending Pattern. You can either import an existing Spending Pattern or build one from scratch. Please let us know if you'd like to use a Spending Pattern Activity to model the non-profit's input purchases and we'll be happy to provide more information. 

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