Economic Impact Studies: Practical Tips & ExamplesEconomic Impact Studies: Practical Tips & Examples

9:00 Estimating the Number of Great Lakes Jobs

Lynn VaccaroMichigan Sea Grant

9:159:15

Quasi-Experiments in Empirical Economics: An Application to Extreme Levels of Lake Michigan

Michael MooreUniversity of Michigan

9:309:30Recreational Fisheries: Using Customer Surveys to Assess Economic Impacts

Dan O’KeefeMichigan Sea Grant Extension

9:459:45 Estimating the Benefits of Great Lakes Restoration

Jennifer ReadMichigan Sea Grant

10:0010:00 Words of Advice, DiscussionChi-Ok OhMichigan State University

Estimating the Number of Great Estimating the Number of Great Lakes JobsLakes Jobs

Lynn VaccaroLynn VaccaroCoastal Research SpecialistCoastal Research Specialist

Jennifer ReadJennifer ReadAssistant Director and Research CoordinatorAssistant Director and Research Coordinator

How many jobs do the How many jobs do the Great Lakes support?Great Lakes support?

The Great Lakes Shaped the Development of Our Economy

Great Lakes Maritime History

U.S. Army Corp

Historically:• Passage for exploration and development• Water Highway for fur, lumber, iron ore, coal, steel, machinery• Enabled the region to become a manufacturing hub

Randy Schaetzl

Jobs in industries that:– Rely on the lakes for key inputs– Receive an economic advantage from the lakes– Are significantly influenced by the lakes

These industries would either not exist or not have developed to the extent that they have reached today without reliance upon the Great Lakes.

Defining Great Lakes JobsDefining Great Lakes Jobs

• Coastal counties for most industries• In Michigan, statewide for manufacturing, mining and science

Where can we find Great Lakes Jobs?Where can we find Great Lakes Jobs?

U. S. Bureau of Labor Statistics– Quarterly Census of Employment and Wages; Occupational

Employment Statistics– Publicly available– Consistent geographically and historically– County level employment for 1000 different industry categories

Data SourcesData Sources

• Manufacturing• Tourism and recreation• Shipping , including freight transport and warehousing• Agriculture, fishing and food production• Science and engineering• Utilities• Mining

67 Great Lakes Industry Categories, 67 Great Lakes Industry Categories, Grouped into 7 Sectors:Grouped into 7 Sectors:

Industries: Industries: chemical, durable and non-durable goodschemical, durable and non-durable goods

Exclusions: Exclusions: printing, petroleum productsprinting, petroleum products

Jobs: 994,879 Jobs: 994,879

Wages: $43 billionWages: $43 billion

ManufacturingManufacturing

Steel (Indiana Dunes National Lakeshore)

Industries: Industries: parks, historical sites, amusements, marinas, parks, historical sites, amusements, marinas, traveler accommodations, boat dealerstraveler accommodations, boat dealers

Exclusions: Exclusions: food service, gas, municipal transportfood service, gas, municipal transport

Jobs: 217,635Jobs: 217,635

Wages: $5.1 billionWages: $5.1 billion

Tourism and RecreationTourism and Recreation

Industries: water, rail, truck, warehousing

Exclusions: air, passenger and pipeline transport

Jobs: 118,550Wages: $5.2 billion

ShippingShipping

Rogers City 1930s, Erhardt Peters

April 2011, Paul Beesley.

www.maritimehistoryofthegreatlakes.ca

Industries: crops, fishing, aquaculture, food and beverage production

Exclusions: animal production, forestry

Jobs: 118,430Wages: $4.8 billion

Agriculture, Fishing and Food Agriculture, Fishing and Food ProductionProduction

www.epa.gov/glinpoDIY Start

Occupations: Occupations: environment, environment, food, conservation, marine, food, conservation, marine, atmosphericatmospheric

Exclusions: Exclusions: most engineering most engineering and science occupationsand science occupations

Jobs: 38,085Jobs: 38,085Wages: $2.2 billionWages: $2.2 billion

Science and EngineeringScience and Engineering

Industries: Industries: power, water, sewerpower, water, sewer

Exclusions: Exclusions: natural gas natural gas distributiondistribution

Jobs: 10,980Jobs: 10,980Wages: $880 millionWages: $880 million

UtilitiesUtilities

Industries: coal, metal

Exclusions: oil, gas

Jobs: 10,003Wages: $630 million

MiningMining

Taconite Processing , PolyMet

Iron ore

The Great Lakes Support: 1.51 million jobs, $6.2 billion in wagesThe Great Lakes Support: 1.51 million jobs, $6.2 billion in wages

Factors that could lead to an Underestimate– Does not include: Coast Guard, Army Corp of Engineers, railroad

workers, self employed and proprietors, domestic workers, farm labor– Suppressed data due to confidentiality– Does not consider indirect or induced employment

Factors that could lead to an Overestimate– Part time, seasonal and full time jobs counted equally– Lakes might not influence entire coastal county

Other Approaches– Economic Lake Effect?

How accurate is this estimate?How accurate is this estimate?

Estimating the Number of Estimating the Number of Great Lakes JobsGreat Lakes Jobs

Lynn VaccaroLynn Vaccaro

Lvaccaro@umich.eduLvaccaro@umich.edu

www.miseagrant.umich.edu/economywww.miseagrant.umich.edu/economy