Economic Impact Analysis - Specific Issues - Income Distribution
Methodology  -  Lake State Examples - Other Examples         
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Daniels, M. J. 2004. "Estimating Income Effects of a Sport Tourism Event." Annals of Tourism Research 31(1):180-199.

This paper compared the use of the IMPLAN Social Accounting Matrix (SAM) to three occupation-based models. The study results suggest that using an IMPLAN SAM to estimate income effects for different households for a sport tourism event may be innapropriate as it is biased to higher income brackets. Instead a modified model that used averaged full-time equivalent wages shows more promise in estimating the true income effects. This particular model demonstrated that for sport tourism, occupations with full-time equivalent salaries that range between $15,000 to $40,000 are most likely to impacted. This study is likely a starting point for using occupational data as an alternative means of demonstrating the income effects of events.

Leatherman, J. C. and D. W. Marcouiller. 1996. "Persistent Poverty and Natural Resource Dependence: Rural Development Policy Analysis That Incorporates Income Distribution." Journal of Regional Analysis and Policy 26(2):73-93.

This paper discussed prospects for rural economic development and the use of social accounting matrix analysis to identify the distributional characteristics of local markets and development programs in natural resource-dependent regions. A SAM was used to examine the distributional characteristics associated with local economic development policies targeting agricultural production, agricultural processing, forestry production, forestry processing, and tourism for a small rural region in Wisconsin. The analysis also investigated the distributional impacts associated with simultaneous and variable change between economic sectors, and the impediments to development that dependence on a disproportionately large economic sector presents. The results suggested that the distributional impacts vary by sector. SAM analysis was a means whereby local development policies can incorporate information important to addressing questions of lagging rural income growth.

Marcouiller, D. W. and J. C. Stier. 1996. Forest Management Alternatives and Income Distribution in the Lake States. Staff Paper Series # 48. Madison, WI: Department of Forestry, University of Wisconsin-Madison.

This staff paper lays the conceptual framework for assessing income distribution and public goods production resulting from alternative forest management regimes, ecosystem-based management vs intensive production, in 101 counties of Northern Minnesota, Wisconsin, and Michigan. The study region is delineated by forest type and represents the forested region of the Lake States. A social accounting matrix with extensions to computable general equilibrium analysis is presented as an approach which allows estimation of income distribution and general equilibrium impacts.

Marcouiller, D. W., D. F. Schreiner and D. K. Lewis. 1993. "Constructing a Social Accounting Matrix to Address Distributive Economics Impacts of Forest Management." Regional Science Perspectives 23(2):60-90.

This paper documents the use of a Social Accounting Matrix (SAM) to analyze the distributional impacts brought on by a changes in natural resource use patterns. In particular the shift to more intensive modes of forest production are analyzed for McCurtain County in southeastern Oklahoma. A hybrid IMPLAN model is developed to construct a SAM with the basic operative unit of the household. In this particular study, medium and high income households are most impacted by timber production while low income households by wood processing. This study provides a detailed account of how to construct a SAM.

Lake States Examples:

Marcouiller, D. W., E. Goodman, S. Fox and D. Scheler. 2004. Travel and Tourism Employment in Wisconsin: Moving Beyond Aggregate Estimates and Conventional Wisdom. Madison, WI: University of Wisconsin-Extension, Department of Urban & Regional Planning University of Wisconsin-Madison.

This study looks at the employment and wages characteristics of the travel and tourism industry in the State of Wisconsin in 2001-02. Focus groups are also used to contextualize the results of the quantitative analysis and provide input on such aspects as the business climate, seasonality, labor markets and the impact of public policy. Statewide the travel and tourism industry generated almost 320,000 total jobs or 12% of all wage and salary jobs. The average annual wage and salary income generated by travel and tourism industry jobs was almost $13,000 compared to $27,000 for "all industries". Roughly three-quarters of the wages and salary are generated in 25 urban and suburban communities, while as a percentage of all economic activity, travel and tourism make up a substantially larger portion (25-30%) of income and jobs for rural Wisconsin. Tourism firm owners and operators were optimistic about the quality of career ladder opportunities in the industry and emphasizes the quality-of-life associated with owning a small business and living in high amenity areas.

Leatherman, J. C. and D. W. Marcouiller. 1996. "Income Distribution Characteristics of Rural Economic Sectors: Implications for Local Development Policy." Growth and Change 27(4):434-459.

Recent trends suggest increasing reliance on private markets to provide for local economic well-being. This paper demonstrates the study of regional household income distribution patterns associated with productive activities important to many rural areas. A social accounting matrix analysis was used to examine agricultural production, agricultural processing, forestry production, forest products processing, and tourism in a small rural region in Southwestern Wisconsin to illustrate the variable distributional characteristics of private market structures and related local economic development policy. The ability of local policy to influence distributional patterns is implied to the extent that local action can facilitate variable growth rates of targeted economic sectors.

Other Examples:

Dillon, T. 2000. Employment and Wages: The Travel Industry in Montana. Technical Report 2000-1. Missoula, University Travel Research Program, The University of Montana. Web Link.

This report looks at the distribution of Montana tourism jobs by sector major sector, the seasonality of tourism jobs in certain sectors, the part-time nature of tourism jobs and the average tourism wage of employees.

Lee, C.-K. and S. Kang. 1998. "Measuring Earning Inequality and Median Earnings in the Tourism Industry." Tourism Management 19(4):341-348.

The purpose of this paper is two-fold: to measure the degree of earnings inequality in tourism employees in South Korea, using the Gini coefficient and the Lorenz curve; and to examine the level of earnings based on median earnings. The results show that tourism generates a moderately equal distribution of earnings. In general, tourism performs better than secondary and tertiary industries, but worse than primary industry. Tourism is more likely to improve the living standards for the lower income class than secondary and tertiary industries. The analysis of median earnings, however, indicates that tourism is a low-wage industry. The labor-intensive nature of the tourism industry absorbing many unskilled and semi-skilled workers might be attributed to its low wage structure. Interestingly, tourism was found to be advantageous to female workers in terms of earnings inequality and the level of earnings.

Christensen, N. A. and N. P. Nickerson. 1995. Job & Wages: The Tourism Industry Dilemma. Research Note 22. Missoula, MT: Institute for Tourism and Recreation Research, University of Montana. Web Link.

This report examines wages in the tourism sector in Montana in 1993. It finds that the sector is dominated by service sector jobs with average wage of $7.56, which is 78% of all nonagricultural hourly wages. However, these are yearly wages and the sector is dominated by part-time jobs which drags down the average. The report goes on to discuss the range of different jobs, in a range of wage classes, that exist in the tourism industry.

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