Wyoming Day Care

Utilizing Regional Economic Models, Inc. (REMI) Policy Insight, the economic impact of the child day care services sector on Wyoming’s overall economy can be estimated. REMI is a regional economic forecasting and policy analysis model that includes cause and effect relationships. For this analysis, a 169 sector, single region REMI model for Wyoming was exercised and an employment change in the child day care services sector was initiated in order to determine how it would affect the rest of Wyoming’s economy. The methodology used to determine the economic importance of the child day care servicessector was to completely remove that sector’s employment from the State’s economy. REMI maintains a baseline forecast and when a shock is introduced into the economy, such as an employment change, it is able to estimate the changes that occur in that forecast for each year that shock is inputted. For the purpose of this analysis, some basic economic impacts are reported for just one year, 2005. By removing child day care services employment from Wyoming’s economy, the following impacts occur:

1. Wyoming’s total employment decreases by approximately 3,270. This reduction in overall employment also indicates that for every job in the child day care services sector it creates0.2 jobs in the rest of the economy.
2. Gross State Product (GSP) is a measure of the total value of goods and services produced ina state. GSP is equivalent to sales less intermediate inputs. According to the Bureau of Economic Analysis (BEA), GSP is considered one of the most comprehensive measures of economic activity in a state. The reduction in child day care employment causes a $68.8 million decrease in Wyoming GSP.
3. Personal income is defined as the income received by all persons from all sources. This sum includes net earnings, rental income, personal dividend income, personal interest income, and transfer payments. According to the REMI results, personal income will decline by $56.6 million.
4. Per capita disposable personal income is viewed as the amount a person has available to spend after tax obligations have been met. The change in the child day care services sectorcauses per capita disposable personal income to decrease by $55.10.
5. The REMI results also show that total output (sales) in Wyoming’s economy will diminish by $109.7 million.
6. The employment shock introduced to Wyoming’s economy by removing child day care services employment also changes the demographic composition of the State. Results fromthe REMI model indicate Wyoming’s population would decrease by 731 persons.