What questions about the REMI study and its regional impacts do you have?
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Under Consideration
What questions about the REMI study and its regional impacts do you have?
4 Replies
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It is surprising to see such a huge increase in healthcare & social assistance jobs.  Eyeballing the figure on page 25, they make up about 25% of the employment gains over baseline.  What is the underlying dynamic being expressed here?

On page 23 it gives the following partial explanation:
"On the other hand, F&D increases demand from households for consumer staples like healthcare, food and drinks, electronics, media, entertainment, and housing. The industries in the blend at the top of the distribution all have close, direct, or indirect linkages with the consumption component (“C”) of GDP, and its expansion in the simulation due to the rebate increase their output and value-added."

But it does not make sense to me because why would a strong economy prompt people to spend more on healthcare?  I would expect healthcare demand to be driven by poor health rather than GDP.   Similarly with social assistance -- what are these jobs?
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3861 Posts
Great questions Linda Westrick‍ that I believe may be partially addressed with the recent 2020 updates here, but I'm copying CCL's Research Coordinator Richard Knight‍ to address your specifics on healthcare and social assistance jobs.
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I believe the principle here is that health care spending is affected by disposable income, not just by health. People may buy better insurance, or get more checkups, or be more likely to go ahead with procedures they would have otherwise put off because of tight finances. Also realize that a lot of people at the low end of the income scale really do forego health services because of lack of money. Here is an article about that
Rick
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That makes a lot of sense, thanks!

If you have any insights about the social assistance jobs, I'd be super curious to understand that better too.

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