32 Chapter 3: Methodology Once these allocations are complete, we apply the ratio of non-labor to labor income provided by the MR-SAMmodel for each sector to our estimate of initial labor income. This computation yields an estimated $10.4 million in added non-labor income attributable to the alumni of SUNY WCC’s Business program. Summing initial labor and non-labor income together provides the total initial effect of alumni productivity in the Westchester County economy, equal to approximately $29 million. To estimate multiplier effects, we convert the industry-specific income figures generated through the initial effect to sales using sales-to-income ratios from the MR-SAM model. We then run the values through the MR-SAM’s multiplier matrix. Table 3.2 shows the multiplier effects of the Business program’s alumni. Multiplier effects occur as alumni generate an increased demand for consumer goods and services through the expenditure of their higher wages. Further, as the industries where alumni are employed increase their output, there is a corresponding increase in the demand for input from the industries in the employers’ supply chain. Together, the incomes generated by the expansions in business input purchases and household spending constitute the multiplier effect of the increased productivity of the program’s alumni. The final results are $11.8 million in added labor income and $7.2 million in added non-labor income, for an overall total of $19.1 million in multiplier effects. The grand total of the Business program alumni impact is $48 million in total added income, the sum of all initial and multiplier labor and non-labor income effects. This is equivalent to supporting 401 jobs.
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