Difference between revisions of "Employment Multiplier"
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| + | == Definition == | ||
| + | '''Employment Multiplier''' is a concept used in [[Multiplier Analysis]] and measures the ratio of the total economy-wide indirect/induced employment of all industries in the economy to satisfy a one-unit increase in the company’s total employment. | ||
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| + | == Formula == | ||
| + | The employment multiplier for sector j indicates the total change in employment from a unit change in direct employment in sector j. The numerator is the sum of interdependence coefficients for sector j weighted by average employment per unit of output in each sector, or the direct plus indirect effects of a unit change in final demand. The denominator is average employment per unit of output in sector j, or the direct effect of a unit change in final demand. | ||
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| + | == References == | ||
| + | <references/> | ||
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| + | [[Category:EEIO]] | ||
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| + | {{#set:Has Formula = HAS_FORMULA}} | ||
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Revision as of 16:07, 28 February 2022
Definition
Employment Multiplier is a concept used in Multiplier Analysis and measures the ratio of the total economy-wide indirect/induced employment of all industries in the economy to satisfy a one-unit increase in the company’s total employment.
Formula
The employment multiplier for sector j indicates the total change in employment from a unit change in direct employment in sector j. The numerator is the sum of interdependence coefficients for sector j weighted by average employment per unit of output in each sector, or the direct plus indirect effects of a unit change in final demand. The denominator is average employment per unit of output in sector j, or the direct effect of a unit change in final demand.
