nea guide to us acpsa

5/27/2018 Nea Guide to Us Acpsa

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NEA Guide to the U.S. Arts and CulturalProduction Satellite Account

Including a Blueprint for

Capturing the Economic Value of Arts and

Cultural Workers and Volunteers


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December 2013

National Endowment for the Arts

1100 Pennsylvania Avenue, NWWashington, DC 20506

Telephone: 202-682-5400arts.gov

Produced by the Ofice of Research & Analysis

Sunil Iyengar, Director

Bonnie Nichols, Research AnalystOther staff contributors: Steven Shewfelt and Tamika Shingler

Editorial assistance by Don Ball and Rebecca Gross

Designed by Kelli Rogowski

The NEAs Ofice of Research & Analysis would like to thank Professor GregoryWassall of Northeastern University for his valuable assistance while this documentwas in production.

202-682-5496 Voice/TTY(a device for individuals who are deaf or hearing impaired)

Individuals who do not use conventional print materials may contact the ArtsEndowments Ofice for Accessibility at 202-682-5532 to obtain this publication inan alternate format.

This publication is available free of charge in PDF format at arts.gov, the website ofthe National Endowment for the Arts.
http://arts.gov/http://arts.gov/


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Table of Contents

Preface ............................................................................................................................................................v

PART I: Accounting for the Nations Arts and Cultural Industries: Why, What, and How? ............ 1Section 1. Why a Satellite Account on Arts and Culture? ...................................................................... 1Section 2. What Does the ACPSA Measure? ........................................................................................... 3Section 3. How Were the ACPSA Commodities and Industries Selected? .......................................... 9Table 3. Commodities Included in the ACPSA ..................................................................................... 15Section 4. Future ACPSA Products and Frequently Asked Questions ............................................... 18FAQs ............................................................................................................................................................ 20

PART II: Accounting for the Nations Arts and Cultural Workforce .................................................. 22Section 1. Adding Value to the Satellite Account: A New Taxonomy for Arts and CulturalOccupations ............................................................................................................................................... 22Section 2. Locating All Occupations (Arts and Non-Arts) Within Arts and Cultural Industries.. 31Section 3. Computing the Monetary Value of Arts and Cultural Volunteers.................................... 34List of Tables Accompanying Part II and Online .................................................................................. 37

Acknowledgements ................................................................................................................................... 38

APPENDIX A. ........................................................................................................................................... 39Understanding Industry Classifications ................................................................................................. 39

APPENDIX B. .......................................................................................................................................... 40Illustration of the Standard Occupation Classification System ........................................................... 40References and Further Reading ............................................................................................................ 42


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Preface

In 2012, the National Endowment for the Arts (NEA) and the U.S. Department of CommercesBureau of Economic Analysis (BEA) agreed to devise a system for valuing arts and culture as adistinct sector of the nations economy.

Thereafter, in consultation with the NEA, the BEA made arrangements to track a cohort of artsand cultural commodities and industries and compute their annual impact on gross domesticproduct (GDP). The result is the irst-ever U.S. Arts and Cultural Production Satellite Account(ACPSA), preliminary estimates from which are being released with this guide.

The timing is propitious. In this year of the irst release of ACPSA data, the BEA already hastaken steps to account for arts and cultural contributions more comprehensively.

In the spring of 2013, the BEA announced that it would begin to consider spending onartistic originals (i.e., ilms, long-running TV shows, theatrical play scripts, books, musicrecordings, commercial stock photography, and greeting card designs) as capital assets ratherthan as expenses. In retrospect, the move added more than $70 billion to the GDP in 2012.(This revision occurred outside the ACPSA development process, and while the result is notrelected in the accounts preliminary estimates, it will show up in future iterations.)

Other countries also have shown the way. Economists in the UK, Canada, Australia, Spain,and Colombia, to name a few examples, have proposed or established arts-related satelliteaccounts for their countrieswhether the organizing principle is creative production,cultural activity, or some hybrid of both concepts.

In working with the BEA staff to design the ACPSA framework, the NEA Ofice of Research &Analysis has taken every opportunity to avail of these resources. This white paper is partlyan attempt to repay the debt, by taking the reader through the U.S. process for assigningeconomic value to industries and commodities.

The irst part of this paper, then, explains what a satellite account is, what types ofinformation it ultimately will provide, how the BEA and NEA tackled complex issues ofdeinition, and which commodities, in whole or in part, are represented by existing data.

Midway through work on the satellite account, however, the NEAs research staff decided thatthe white paper could serve a second purpose. In conversations with multiple stakeholders

about the ACPSA project, there frequently arose confusionor, at any rate, unansweredquestionsabout how the choice of arts and cultural commodities might bear on futurerecognition of arts/cultural workers (and not just industries) as a critical component ofeconomic value.

This line of inquiry led NEA researchers to advance a new taxonomy of arts and culturaloccupations, to supplement use of the commodities that appear in the satellite account. Thislist stems from an evaluation of Bureau of Labor Statistics occupation codes, but it allowsfor individual and combined estimates of economic valuewhich, again, may be examinedproitably alongside the ACPSA.

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Another method presented here is more empirical. Instead of a top-down approach fordetermining which occupations merit inclusion in an arts/cultural workforce taxonomy,this method consists of analyzing the presence of all types of occupation within arts andcultural industries, and reporting inancial data on the occupations that are the most highlyrepresented within each industry.

This paper, therefore, serves jointly as a guide to the ACPSA in its irst year and as a

blueprint for building a comparable robustness in the methodology used to track artsand cultural occupations at the U.S. level. Likewise, a section on capturing the economicvalue of the nations arts/cultural volunteers supports the NEAs long-term aim of morecomprehensive accounting for this sector.

Economic outcomes from the arts fall into one domain of impacts under investigation bythe NEA as part of its strategic plan and ive-year research agenda. According to the plan,the NEA seeks to advance public knowledge about the arts contributions to American life.

Other research projects bid to achieve the following goals: to quantify audience memberslevels of engagement with NEA-funded arts programming; to track the long-termrelationship between the arts and livability in communities throughout the nation; evaluatethe effects of creative arts therapies in military personnel experiencing psychologicalillnesses and mild traumatic brain injury; and to address knowledge gaps concerning thearts link to human development at every stage of the lifespan. For many of these studies,the NEA is collaborating with one or more federal agencies to realize a shared objective.The BEA satellite account is a lagship instance of such ventures.

Finally, the length of this paper and the variegated ground it attempts to cover aretestimony to the wide-ranging ambition behind satellite accounts in general. As the BEAhas noted, they are regarded as laboratories for distilling ine-grained information aboutsectors that are treated more summarily in the main industry accounts. As the NEAembarks on the second year of this experiment with the BEA, we hope this white paper will

illumine the factors and choices that informed the accounts creation, even while we knowthat there will be ample scope for improvement in the months ahead.

Sunil IyengarDirector, Research & AnalysisNational Endowment for the Arts

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PART I: Accounting for the Nations Arts andCultural Industries: Why, What, and How?

S 1. W S A A C?

The Bureau of Economic Analysis (BEA),nestled within the U.S. Department ofCommerce, produces a system of accountsthat measure what the U.S. economyproduces, how much is earned by thatproduction, and how earnings are spent.

The BEAs national income and productaccounts(NIPAs) include gross domesticproduct(GDP)which captures the inalvalue of the goods and services produced inthe United States over a given periodandpersonal consumption expenditures(PCE), which make up 70 percent of the totalvalue of U.S. GDP.

Complementing the NIPAs are the BEAsindustry accounts, which provide a

framework to measure and analyze, byindustry, the production of goods andservices. These accounts depict the internalworkings of the U.S. economy.

The BEA releases industry accounts intwo main formats. The irst are the annualindustry accounts, which report estimatesfor 65 industries, and the second are thebenchmark industry accounts, which arereleased every ive years and contain datafor 425 detailed industries. For example, theBEAs annualindustry accounts show thatthe performing arts, spectator sports, andmuseums, combined, added $83 billion tothe U.S. economy in 2011. The more detailedbenchmarkaccounts, by contrast, reveal thatthe performing arts, as distinct from sportsand museum industries, contributed $7.2billion to GDP in 2002.

Despite the wealth of information availablefrom the BEAs industry accounts, theydo not visibly capture every aspect of theeconomy. Satellite accounts, alternatively,expand the capacity of the nationalaccounting system. Linked to, but distinct

from, the main industry system, they cutacross sectors and arrange industry datato show detail without overburdening themain industry accounts. Because they aresupplemental, satellite accounts also permitconceptual developmentin effect, theycan serve as laboratories for economicaccounting.

The BEA, for example, produces a satelliteaccount on travel and tourism (the Travel

and Tourism Satellite Account, or TTSA)1

.Travel and tourism services are provided,in either large or small part, by a varietyof industries spanning accommodation,transportation, entertainment, and retailsales. Consequently, the value of travel andtourism is not evident in the main system ofaccounts.

To illustrate: the BEA estimates that 75percent of the services provided by theaccommodations industry (e.g., hotels andB&Bs) relate to travel and tourism, while 13percent of gas-station sales stem from

1 In addition to the TTSA, the BEA hasproduced a satellite account on transportation(last updated in May 2000) and is in the midst ofproducing a satellite account on healthcare. For moreinformation, see the References section for BEAsliterature on these accounts.


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travel and tourism. The TTSA teases out theportion of each relevant industrys traveland tourism production to arrive at a totalfor the sectorin 2011, travel and tourismadded $415 billion to the U.S. economy.

A Satellite Account on Arts and CulturalProduction

Arts and cultural production is included inthe GDP and in the BEAs central industryaccounts. However, economic contributionsspeciic to the arts are lost in the aggregatedindustry igures. To draw out these detailsfor the production of arts and cultural goodsand services, therefore, the NEA and theBEA agreed to develop an Arts and CulturalProduction Satellite Account (ACPSA).

This account will ensure, for example,that estimates for the performing arts arereported not only in aggregate, but also forspeciic commodities such as theaters, dancetroupes, and symphony orchestras.

Moreover, there are a number of industrieswhose production is only partly related toarts and culture. To include the entireamounts produced by these industrieswould falsely inlate the economic value of

the arts and culture, while excluding theindustries in their entirety would result inunderestimation.

To rectify this matter, the ACPSA, like theTTSA, includes only the share of productionrelated to the arts. For example, the ACPSAincludes only the percentage of softwarepublishing related to computer games,computer-assisted design (CAD), and otherarts-related software. Similarly, entries for

computer design systems (a professionalservices industry) are restricted toproduction supporting the motion pictureand sound recording industries. The ACPSAalso includes fractional production byadvertising services, educational services(e.g., colleges and universities), and printing,to name a few.

As a satellite account, the ACPSA has thelexibility to comprehensively measurearts and cultural production in the U.S.,providing an unprecedented amount ofdetail about the economic value created bythis sector.


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S 2. W D ACPSA M?

Before addressing the commodities andindustries captured by the ACPSA, it ishelpful to understand some of the innerworkings of the account. This section

summarizes the data sources used togenerate the account. It introduces theconcept of I-O tables and their resultingmeasures such as consumption andvalue added, which are part of the BEAsframework for measuring economic activity.

At the time of producing this white paper, theNEA did not have access to the 2013 ACPSA,then in the inal stages of preparation. Theexamples shown below, consequently, draw

on igures for motion picture and soundrecording industries reported in the BEAsmost recent 2011 annualindustry accounts.

Data Sources

The BEA uses a wide range of data sourcesand methods to prepare the NationalIncome and Product Accounts (NIPAs) andindustry estimates. Data produced by theU.S. Census Bureau and the U.S. Bureau ofLabor Statistics are key data sources, as are

government administrative data such as taxreturns.

Because they do not interfere with the BEAsmain industry estimates, satellite accountscan also draw from less conventional datasources, including data collected by privateindustry.

Below is a partial summary of data sourcesthe BEA used or accessed in preparing the

ACPSA:

Data from the U.S. Census Bureau

Economic Census; Services Annual Survey(SAS); Non-Employer Statistics; Census ofGovernments

Among the most important data sourcesused by the BEA is the Economic Census,

which is conducted by the U.S. CensusBureau in years ending in 2 and 7.The Economic Census provides the mostcomprehensive data available in terms of

industry coverage and in the measurementof the economic units in those industries.

In addition to the ive-year Economic Census,the BEA also draws from the Census Bureausannual surveys of business establishments.The Service Annual Survey (SAS) is sent to72,000 service businesses (both taxable andtax-exempt) with paid employees. Many ofthe industries included in the ACPSA areservice industries, including motion picture

and sound recording, publishing, designerservices, and the performing arts.

Workers in a number of arts and culturaloccupations, however, report high rates ofself-employment. For example, 68 percent ofwriters and authors are self-employed, as are60 percent of photographers, art directors,and craft artists.

The ACPSA measures the production andearnings of the self-employed through the

Census Bureaus non-employer statistics,which are based, in turn, on ScheduleC attachments to IRS Form 1040, U.S.Individual Income Tax Return. The ScheduleC applies to the self-employed if the primarypurpose of the work is to generate income orproit and the work is done regularly. If thesecriteria are met, Schedule C attachmentsare required of self-employed workers withbusiness income of $400 over and aboveexpenses.

The ACPSA also includes arts and culturalproduction by government, includinggovernment-operated libraries andmuseums. Source data for these estimatesincludes the Census of Governments, which,like the Economic Census, is conducted bythe Census Bureau every ive years, for yearsending in 2 and 7.


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Data from the U.S. Bureau of Labor Statisticsand the U.S. Department of Labor

Quarterly Census of Employment and Wages;Consumer Expenditure Survey; LM2 Reports

The Quarterly Census of Employment

and Wages (QCEW) program produces acomprehensive tabulation of employmentand wage information for workers coveredby unemployment insurance programs.2The QCEW program publishes employmentand wage data down to the six-digit NAICSindustry level, if disclosure restrictions aremet.

Conducted by the Census Bureau for theBLS is the Consumer Expenditure Survey(CES), which consists of interview anddiary components. The CES is the onlyfederal survey to provide information on thecomplete range of consumers expendituresand incomes.

The ACPSA includes estimates for arts-related unions such as organizationsrepresenting stage and screen actors. Labororganizations with $250,000 or more intotal annual receipts are required to ile LM-2, the Labor Organization Annual Report,

with the Ofice of Labor-ManagementStandards within the Department of Labor.

Data from Non-Government Sources

The ACPSA also draws on non-governmentsource data. For example, the ACPSAincludes the construction of educational andrecreational buildings such as libraries andmuseums. These estimates were derived,in part, from data supplied by McGraw Hill

Construction, part of McGraw Hill Financial.

As another example, detail within thearchitectural services industry wasestimated using the Work-on-the-Boards

2 Excluded from the QCEW are members ofthe armed forces, the self-employed, proprietors,domestic workers, unpaid family workers,and railroad workers covered by the railroadunemployment insurance system.

Survey and Panel, which is conducted by theAmerican Institute of Architects Economicsand Market Research Group.

NAICS Codes

Central to the workings of the ACPSA is the

North American Industrial ClassiicationSystem (NAICS), a two- through six-digithierarchical classiication system thatgroups business establishments (page 39)into industries according to similarity in theprocess used to produce goods and services.As explained by the U.S. Census Bureau, eachdigit in the NAICS code is part of a series ofprogressively narrower categories: moredigits in the code mean greater classiicationdetail.3

Additionally, NAICS deinitions are revisedand incorporated into the BEAs industryframework on a ive-year basis. The currentiteration of the ACPSA is measured using2002 NAICS deinitions, while the secondwave of the account (planned for release inthe fall of 2014) will relect 2007 revisions.

Revised industry classiications update theaccounts to more accurately portray thedynamic U.S. economy and permit better

international comparisons with economicdata from other countries. For example, theACPSA includes Internet publishing andbroadcasting among its arts and culturalindustries. The 2002 reclassiicationbetter accounted for this industry thandid the previous (1997) classiication,which combined Internet publishing andbroadcasting with other industries, such asnewspapers and periodicals.

Appendix A illustrates the NAICS hierarchyfor performing arts industries.

The Inner Workings of the ACPSA: I-OAccounts

While it is beyond the scope of thisdocument to attempt to fully explain the

3 Please see Appendix A for an illustration ofthe NAICS hierarchy.


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BEAs methods of calculating nationalincome and product accounts (NIPA) andindustry estimates, this section draws onthe agencys annual industry accounts tohighlight the ACPSAs inner workers throughinput-output (I-O) accounts.4

As a satellite account, the ACPSA expandson the BEAs main industry accounts, which,in turn, consist of the input-output (I-O) accounts that trace the low of goodsand services among industries in theproduction process.5 I-O accounts, as theBEA explains, show the interdependenceamong the producers and the consumers inthe U.S. economy. Two main tables in the I-Oaccounts are the standard make and usetables.

The standard make table shows the valueof commodities (e.g., goods, merchandise,or services) produced by each industry in agiven year. For example, virtually all motionpicture and sound recording merchandiseand services are produced by motion pictureand sound recording industries (NAICS512)$102.7 billion in 2011.6

The standard use table, alternatively, is amatrix showing the use of commodities byindustries as intermediate inputs and byinal users in a given year.

4 Readers interested in a full explanation ofthe BEAs methods of calculating NIPAs and industryestimates should refer to the bureaus technicaldocumentation, shown in the references section ofthis document.

5 Because the I-O accounts drive the BEAsindustry estimates, I-O accounts are also released onannual and ive-year benchmark timeframes. Themost recent annual I-O accounts report estimates for2011, while the current benchmark I-O accounts areshown for 2002.

6 The BEAs make table reports that computersystems design industries and miscellaneousprofessional, scientiic, and technical servicesindustries produced $481 million and $156 million,respectively, in motion picture and sound recordingcommodities in 2011.

Intermediate and Final Uses

Of the $102.9 billion in motion picture andsound recording commodities produced in2011, roughly 60 percent were purchasedas intermediate inputsi.e., the goods andservices that are used in the production

process to produce other goods andservices.

The remaining 40 percent of motion pictureand sound recording merchandise andservices produced were bought by inalusers, composed of: U.S. consumers, whomake up a large majority of inal users;U.S. businesses; and foreign purchasers(exports). In 2011, U.S. consumerspurchased $36 billion in motion picture

and sound recording merchandise andservices86 percent of all inal-usepurchases. An additional $11.1 billion wasexported to foreign purchasers, while theU.S. imported $5.2 million.

Change in private inventories shows that,in 2011, $156 million more in motionpicture and sound recording merchandiseand services was sold than producedbusinesses drew down their inventories.Selling more than what was produced in a

given period, a year in this case, is a signthat motion picture and sound recordingindustries may step up production in thenext year.


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Because BEAs 2011 annual tables wereproduced prior to the 2013 revisions tothe national accounts, they do not captureartistic originals (e.g., movies and musicrecordings) as investments.7Consequently,private ixed investment, in 2011, was zero

for motion picture and sound recordingcommodities.

Key Measures of Arts and CulturalProduction

Industry Output and Value Added

Two key measures provided by the ACPSAare industry output, and its closely related

measure, value added.

8

Industry output isthe market value of the goods and servicesproduced by an industry. Value added,alternatively, is gross domestic product byindustry.

7 See the text box on artistic originals in Part I,Section 4.

8 In the BEAs annual industry accounts,industry output is referred to as gross output.

Industry output includes sales or receiptsand other operating income, commoditytaxes (e.g., sales and property taxes), andinventory change.9Value added is industryoutput minus intermediate inputs (i.e.,energy, raw materials, semi-inished goods,and purchased services)i.e., value addedis the industrys contribution to the nationalGDP.

In 2011, industry output for motion pictureand sound recording industries was $103.6billion. This igure, however, includes thegoods and services used by motion picturesand sound recording, but not produced by

9 Inventory change is the difference betweenlast years ending inventory and the current yearsinventory.

The ACPSA measures arts and cultural producon by business establishments. The U.S.Census Bureau denes a business establishment as a single physical locaon where business

is conducted or where services or industrial operaons are performed. An enterprise, on theother hand, may consist of more than one locaon performing the same or dierent typesof economic acvies.

As an illustraon, the Madison Square Garden Company is a sports, media, andentertainment enterprise. Madison Square Garden establishmentsinclude Radio City MusicHall (home to the Rockees), the Beacon Theater, the Chicago Theatre, the Forum, andthe Madison Square Garden Arena. Each of these establishments falls into NAICS 71131,promoters of performing arts, sports, and similar events, with facilies, which is parallyin scope of the ACPSA. (In other words, the ACPSA restricts producon from this industry tothe performing arts.)

The Madison Square Garden Company also owns and operates Fuse, a music televisionnetwork within broadcasng, which is another industry captured by the ACPSA.

Business Establishments vs. Enterprises:

M Sq G E

Industry OutputEnergy Costs, Raw Materials, etc.,

Value Added


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Use of Motion Picture and Sound Recording Commodities, 2011

(Millions of dollars)

T $102,936

Uses:

I $61,167

F $41,771Personal consumpon expenditures $36,014

Change in private inventories $156

Private xed investment

Exports $11,098

Imports $5,185

Source: 2011 Use Table, U.S. Bureau of Economic Analysis

their own labor and capital. The electricityused by the industry was generated by theenergy sector. Camera and sound-recordingequipment and set lighting were made bythe manufacturing sector.

Subtracting these kinds of intermediatecosts from industry output yields $60.2billion in value added by motion picture andsound recording industries. In other words,

using their own labor and capital, motionpicture and sound recording industriescontributed $60.2 billion to U.S. GDP in2011.10

10 Due to disclosure controls, industryoutput and value added reported in the ACPSAare aggregated. For example, industry output andvalue added by motion picture and sound recordingindustries are subsumed within the ACPSAs industryaggregate titled information, electronic. However,industry output and value added for motion puctureand sound recording industries can be calculatedby combining data from the ACPSA with estimatesreported in the Economic Census. For moreinformation, go online to see the NEAs arts dataproile page about the ACPSA.

Employment, Compensation, and Measures ofIndirect Production

As part of the ACPSA, the BEA alsoestimates arts and cultural employmentand employment compensation. In 2011,for example, motion pictures and soundrecording industries staffed 371,000(full- and part-time) employees; theircompensation totaled $28.9 billion.11The ACPSA also includes estimates of

direct and total output, as well as totalcommodity output multipliers. While anin-depth discussion of these measuresis beyond the scope of this document, itis worth noting simply that measures ofdirect and indirect output derive from I-Orequirements tables.

11 Compensation of employees consists ofwages and salaries in cash; wages and salaries inkind (e.g., transit subsidies); and supplements towages and salaries such as employer contributions topension, health, and unemployment insurance funds.

The BEAs structure for measuring employmentdiffers from that used by the BLSs OES program,which is the subject of Part II of this document. Forexample, employment measured by the BEA includesself-employed workers, but it excludes estimates byoccupation. Please see Part II of this document formore information.


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The BEA reports direct and totalrequirements (the sum of direct andindirect requirements). If inal demandfor a commodity increases, there will bean increase in output of that commoditysometimes called the directeffect. Asproducers of this commodity increase their

production, there will also be an increase inthe output of their suppliersthe indirecteffect.

To illustrate direct and total requirements,assume that U.S. consumers (a componentof inal demand) increase their demandfor motion picture and sound recordingmerchandise and services by $1. Inresponse, as reported in the BEAs 2011industry requirements table, motion picture

and sound recording industries increasetheir output by $1.14.

But as motion picture and sound recordingindustries increase output, their suppliersmust increase their production as well.For example, the $1 increase in consumerdemand for motion picture and soundrecording merchandise and services leads toa $0.11 increase in output by miscellaneousprofessional, scientiic, and technical

services (e.g. electronic communicationservices, appraisal services), and nearly$0.02 in production by the legal servicesindustry. The $1 increase in demandcascades through many industries, reaching$1.71 in total industry output requirement.

Using Expenditures to MeasureGross Output of Tax-Exempt Artsand Cultural Industries

Because moon picture and sound

recording industries are predominantlyfor-prot and therefore taxable, measuringtheir industry output and value added canbe accurately measured using revenue orsales. However, relying solely on revenuemay understate the value of nonprottax-exempt business establishments. Theseinstuons typically oer discounted orfree services not captured by revenue orsales.

Consequently, the ACPSA draws onexpenditures in addion to revenue tomeasure industry output and value addedfor educaonal services such as ne artsschools, performing arts companies,museums and historical sites, grant-making services, and business and labororganizaons such as unions.


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S 3. H W ACPSA C IS?

The selection of commodities (i.e., goods andservices) for the ACPSA, and, consequently,

the selection of industries producing artsand cultural commodities, was based onthree factors: (1) an overarching deinitionof arts and cultural commodities; (2) theconstruction of a basic framework for theaccount; and (3) examples of arts and culturalstatistical frameworks formulated by othercountries and international organizations.

This process led to the identiication of 64distinct arts and cultural commodities, shownin Table 3 in this chapter.12In addition to

performing arts and museum commodities,the ACPSA includes goods and servicesthat span sectors as varied as construction,manufacturing, professional services, andgovernment.

The Deinition of Arts and CulturalCommodities

The NEAs Ofice of Research & Analysis

(ORA) collaborated with the BEA to selectthe detailed commodities to be includedin the ACPSA. Commodities, or goods andservices, are strongly linked to the industriesproducing them. For example, motionpictures, as a commodity, were selectedfor inclusion. The motion picture industry,consequently, became an ACPSA industry.

The irst step in selecting commodities andindustries for the ACPSA was to considerORAs proposed deinition:

Artistic and cultural commodities are thoseintended chiely as a function of creativeor cultural engagement, or are intended

primarily to facilitate access to suchcommodities.

12 Commodities are goods and services such asmusical instruments (good) and dance performances(service).

The ACPSA, therefore, includes not onlycommodities whose primary activities are

arts and cultural, but also commoditiesand industries that support the productionof arts and culturei.e., the creativechain. For example, the ACPSA includesestimates for symphony orchestras andchamber music organizations. To relectthe production cycle of music performance,the ACPSA also includes musical instrumentmanufacturing, wholesale distribution ofmusic supplies, and musical instrumentstores.

As an additional example of the ACPSAscreative chain, consider that the accountincludes newspaper, periodical, and bookpublishing. However, printing is oftennecessary for publishing. Consequently,selected printing commodities andindustries are also included as arts andcultural commodities and industries.

Determining the extent of the ACPSAscreative chain was in itself a highly selective,

and to some extent, an idiosyncraticprocess. For example, the ACPSA includesjewelry design and jewelry manufacturing(an industry employing many jewelersand precious stone and metal workers),considered here as craft arts. However,the ties between cultural production andwholesale and retail sales of jewelry werethought to be tenuous and outside the scopeof the account. Consequently, jewelry saleswere excluded from the ACPSA.13

Similarly, the ACPSA includes fashion design,but excludes clothing manufacturing andapparel sales.

13 Wholesale and retail jewelery sales marginsare relected in ACPSA supply, which measurescommodities at the purchasers value.


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ACPSA Framework

The process of selecting arts and culturalcommodities and industries was alsoaided by considering the BEAs provisionalframework for the ACPSA. Not allcommodities it neatly into the framework,

and the reporting of ACPSA estimatesis not organized within its domains.14Nevertheless, the framework served as anearly tool for choosing ACPSA commoditiesand industries.

The ACPSA framework is divided into threedomains: core; applied arts and designservices; and transversal. Each of thesedomains, in turn, is further partitioned intosub-domains.

Core Domains

A wide variety of ACPSA commoditiesit into the following core sub-domains:museums, libraries, and cultural centers;live performance and music; visual arts;written works; and audio-visual andinteractive media.

Core Domains

Museums,libraries, and

cultural centers

Live performanceand music

Visual arts Wrien worksAudio-visual

and interacvemedia

A A D SD

T D

Adversingservices

Other designservices

Educaon

Governance,funding, andprofessional

support services

Infrastructure

14 ACPSA commodities unaligned with theframework include electronic shopping for booksand music and rentals of theatrical costumes andequipment.

Museums, libraries, and cultural centersinclude museums, libraries and archives(including government-operated libraries),botanical gardens and zoos, and natureparks. The transversal ACPSA domaincapturing governance also includesmuseumsspeciically, government-

operated museums.

Commodities falling under live performanceand music include performing artscompanies, such as music, dance, andtheater groups, as well as goods andservices supporting music such as soundrecording, the manufacture of musicalinstruments, and music stores.

The visual arts sub-domain comprises

a number of detailed manufacturingcommodities representing craft arts.Examples include the manufacture ofchina and glass, jewelry and silverware,and custom architectural woodwork. Thevisual arts also contain several retail salescommodities including art dealers, loristshops, and camera and photographic supplystores, as well as commodities supportingthe visual arts (i.e., the creative chain)such as lead pencils and art goods and

photographic equipment.


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Publishing (newspaper, periodical, andbook), along with its supporting printingactivities, make up the core sub-domainlabeled written works; motion pictureproduction and broadcasting featureprominently in audio-visual and interactivemedia.15

Applied Arts and Design Services

The applied arts and design services domainfeatures advertising services. In order toemphasize creative production, advertisingwithin the ACPSA excludes public relations,media buying, distribution, and signpainting.16

This domain also includes architectural

services (including historical restorationservices) related to arts and culturalstructures, as well as all landscapearchitectural services.17

Additionally, this domain includes fourdesign services: interior design services;industrial design services; graphic designservices; and other design services suchas jewelry and fur design. The ACPSA alsoreports estimates for fashion design, a

detailed commodity within other designservices.

Transversal Domains

There are three transversal ACPSA domains:education; governance, funding, andprofessional services; and infrastructure.Education includes educational services,which is restricted to ine arts, performingarts, and media arts (e.g., graphic design)

15 The ACPSA excludes sports from itsestimates of publishing and broadcasting production.

16 Media-buying agencies purchase advertisingtime from media outlets and resell it to advertisingagencies.

17 The irst iteration of the ACPSA restrictsarchitectural services to cultural institutionalprojects, which represent approximately 2 percentof all architectural services. An expanded measureof architectural services will be considered for therevised ACPSA planned for release in the fall of 2014.

departments of colleges and universities(including state colleges and universities),and ine arts schools such as ballet schoolsand music schools (except academic).

Governance, funding, and professionalservices feature art promoters and agents,

arts-related granting organizations andunions, and government-operated museumsand parks. (Non-government museums areincluded in the ACPSAs core domain.)

The accounts transversal domain alsoincludes the construction sectorspeciically, construction related to neweducational facilities such as museums andlibraries, as well as selected amusement andrecreational structures related to the arts

(e.g., theaters, performing arts centers).International Comparisons

Other arts and cultural satellite accountshave been produced by countries includingColombia, Spain, Finland, and, through itsDepartment of Culture, Media & Sport, theUnited Kingdom.

Statistical frameworks (i.e., plans oroutlines) for measuring arts and culture

production have also been undertaken bya number of international organizations,including the World Intellectual PropertyOrganization (WIPO); the Organization forEconomic Cooperation and Development(OECD); and the United Nations Conferenceon Trade and Development (UNCTAD).

By country, or by organization, someaccounts or frameworks emphasize artsand culture, while others accentuatecreativeindustries. (The WIPO model,alternatively, is a copyright-based model.)That distinction, however, is based onperspective. For example, the performingarts, motion picture and sound recording,and publishing are included in moststatistical models, whether framed asarts and cultural production or creativeproduction.


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Differences between models tend rather tobe at the margins. In its seminal document,Creative Economy Report 2010, the UNCTADwrites: There is no right or wrongmodel of the creative industries, simplydifferent ways of interpreting the structuralcharacteristics of creative production.

The design of the ACPSA was guided, inpart, by examples set by internationalmodels, particularly the arts and culturalframeworks designed by Statistics Canada,the Australian Bureau of Statistics, and theUnited Nations Educational, Scientiic andCultural Organization (UNESCO).18There isbroad alignment of the types of productionselected for the ACPSA and those includedin the international models. For example,

the ACPSA and the three internationalmodels considered include performing arts,museums and libraries, motion picturesand sound recording, publishing, andarchitectural and design services.

However, differences tend to appear intheproductioncycles captured by thevarious models. For example, like the threeinternational models considered here, theACPSA includes music performance. As

part of musics creative chain, the ACPSA,along with the Australian and UNESCOmodels, includes the manufacture of musicalinstruments. The Canadian model doesnot. The Canadian framework restricts theproduction of musical instruments to theexpenses incurred when performing musicgroups acquire musical instruments. Inother words, under the Canadian model,the manufacture of musical instrumentsis relected in the expenses borne by

18 As of November 2013, Australian andCanadian satellite accounts were still underdevelopment. The Australian and Canadianframeworksdiscussed in this report may differ fromthe ultimate satellite accounts of each country.

performing music groups.19

Differences also appear in fashion andjewelry production. The ACPSA and theCanadian and UNESCO models includefashion design but exclude the manufactureof clothing and the wholesale and retail

sales of clothes.20The Australian model,however, includes each of these in theirproduction cycle of clothing.

The Australian model also includes thefull production cycle of jewelrydesign,manufacture, and sales. The ACPSA, on theother hand, includes jewelry design andthe manufacture of jewelry, but excludesjewelry sales as a commodity. UNESCOdoes likewise, but the Canadian model is

restricted to jewelry design.21

The inclusion of computer systems designalso varies among the models considered.The ACPSA includes computer systemsdesign, but it is restricted to customweb design and computer applicationsnecessary to support motion picture andsound recording production. The Canadianframework also includes computer systemsdesign, but it is limited to custom webdesign.

Alternatively, the Australian and UNESCOframeworks include all computer systemsdesign production.

19 In the ACPSA, expenses incurred byacquiring musical instruments are also relected inthe total production of performing music groups(e.g., symphony orchestras and chamber groups) .But musical instruments are intermediate inputs toperforming music groups.

20 Fashion and jewelry design are part ofother specialized design within the ACPSA and thethree international models considered.

21 Ibid.


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I S I (Y/N) ACPSA I M

U.S. ACPSA Canada UNESCO Australia

Live performance of music Yes Yes Yes Yes

Manufacture of musical instruments Yes No Yes Yes

Fashion design Yes Yes Yes Yes

Clothing manufacturing No No No Yes

Wholesale/retail sales of clothing No No No Yes

Jewelry design Yes Yes Yes Yes

Jewelry manufacturing Yes No Yes Yes

Jewelry wholesale and retail sales No No No Yes

Computer systems designYes,

parallyin scope1

Yes,parallyin scope2

Yes, fullyin scope

Yes, fullyin scope

1Custom web design and applicaons supporng moon pictures and sound recording.2Custom web design.


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A number of models have been developed to provide a systemac understanding ofthe structural characteriscs of arts and culture industries. Chief among these are theconcentric circles model and the WIPO copyright model. The concentric circles model,authored by Australian economist David Throsby, argues that the more pronounced thecultural content of a parcular good or service, the stronger is the claim for inclusion of theindustry reporng it. Within the ACPSA, for example, moon pictures were selected as anarts and cultural commodity. The moon picture industry, consequently, became an ACPSAindustry.

The WIPO (World Intellectual Property Organizaon) model, alternavely, capturesindustries that produce or distribute copyrighted goods. ACPSA industries matching theWIPO model include adversing, moon pictures, sound recording, publishing, design,and television and radio broadcasng. The ACPSA does not, however, include WIPO-modelindustries such as the manufacture and sales of toys and consumer electronics.

Recently, a new method of classifying creave industries was developed by Nesta, theU.K.s nonprot innovaon foundaon. The Nesta method emphasizes creave intensity,which refers to the share of total employment within an industry that is engaged in creaveoccupaons. Within the Nesta model, occupaons are scored on a grid of ve criteria:(1) process novelty; (2) resistant to mechanizaon; (3) non-repeang output; (4) creavefuncon in process; and (5) interpretaon not transformaon. An occupaons creaveintensity is the composite of these scores.

Compared with the ACPSA and other internaonal models, parcularly the creaveindustries dened by the U.Ks Department of Culture, Media & Sport, which Nesta targetedfor its analysis, the Nesta model results in a dierent set of industries. One dierence isprinng. Because the occupaon of printers did not score highly on Nestas grid, prinngindustries are excluded from its list of creave industries. The ACPSA, alternavely, includesprinng associated with newspapers, periodicals, books, and art reproducons.

A more pointed dierence is the ACPSAs inclusion, and Nestas exclusion, of orist shops.The decision to include retail sales, orists in the ACPSA stemmed from the industrysprincipal occupaonoral designers. Data issued by the U.S. Bureau of Labor Stascsshow that in 2012 nearly half of the workers employed by orist shops were oral designers,an occupaon classied among art and design workers within the Standard OccupaonClassicaon (SOC) system.

However, oral arrangers earned a low score of two on Nestas creave grid. Florist shops,

consequently, are excluded from Nestas denion of creave industries.

Nestas Mapping of the U.K.s Creative Industries


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ACPSA Commodities

Table 3 shows the arts and cultural commodities deined by the ACPSA.

Table 3. Commodities Included in the ACPSA

Commodity Notes

A

Theater

Dance

Opera

Symphonies I b

Circuses

Other

I

( jzz, , y b ) w v

Independent arsts, writers, andperformers

Museums (art)

Museums (botanical and zoological)

Museums (childrens)

Museums (historical sites)

Museums (history)

Museums (natural history)Museums (nature parks)

Museums (science)

Museums (other)

A

Fine arts I

OtherN-v vy

I

Moon picture and video I v , , b; v ;v v

Sound recordingR ; ;

b

Broadcasng R v b

TelecommunicaonsCb TV b;

TV w


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Commodity Notes

Internet publishing and broadcasngWb b; I ; I

Other informaon services Nw y

Publishing:

Newspapers and periodicals

Cards, calendars, and related publishing

Books:

Educaon (K-12)

Higher educaon

Professional

Scholarly

All other professional, technical, andscholarly books, in print

Adult con

Adult noncon

Juvenile con

Juvenile noncon

Religion

All other adult trade books

Childrens books

All other books

Soware publishingI v ; -

w; CAD wP

Interior design services

Industrial design services

Graphic design services

Fashion design services

All other design services I jwy

Architectural services, historic restoraonR

All other architectural services R

Landscape architectural services

Computer systems designR

AdversingEx b ; -

by v; b

(.., ); -

Photography services


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Commodity Notes

Photonishing Ex -

O

Grant-making and giving services A-

Unions A-

O

Manufacturing (prinng)

L, v, ,

z, w, ,

w; b ; ; b

- v

Manufacturing (jewelry and silverware)

Manufacturing (other)

M ; ;

ww;

; bw ww;

- w ; C

Wholesale trade

P q; b, z,

w; ;

Retail tradeA ; y ;

; b ; ; y

; b

ConstruconC w

,

GovernmentS ; ; v; v

libraries

Rental and leasingWb ;

q ; -

v


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S 4. F ACPSA P Fq A Q

The current ACPSA is the irst effort bythe federal government to measure anddocument U.S. arts and cultural productionand its effect on the national economy. In

FY 2014, the ACPSA is subject to furtherrevisions stemming from the NEAs Oficeof Research & Analysis in consultation withvarious stakeholders, including membersof the arts community, cultural researchers,and international colleagues whothemselves are producing satellite accountson arts and culture.

The revised ACPSA estimates are plannedfor release in the fall of 2014.

The Capitalization of Entertainment, Literary, and Other ArtisticOriginals

While the current ACPSA relects 2002NAICS (North American IndustrialClassiication System) codes, the 2014ACPSA will draw on 2007 deinitions of

the NAICS. All revisions to the 2014 ACPSAwill be carried out for the full time series of1998-2012. Additionally, the 2014 estimateswill include investment from artisticoriginals (see text box below).22

Moreover, the revised ACPSA will befeatured in a fall 2014 article in the BEAsSurvey of Current Business.

22 The inclusion of artistic originals asinvestment spending was part of the BEAs recentlyreleased comprehensive revisions to the nationalincome and product accounts. These revisions werenot available for the 2013 iteration of the ACPSA.

Typically conducted at ve-year intervals, comprehensive revisions of the industry economicaccounts allow the BEAs esmates to beer reect the evolving nature of the U.S. economy.These revisions also facilitate internaonal comparisons with economic data available fromother countries. The most recent of these revisions, scheduled for release in December2013, will include the capitalizaon of entertainment, literary, and other arsc originals.Under this new treatment, long-lived artwork produced by arsts, studios, and publishers

will be capitalized; that is, producon of long-lived artwork will be treated as an investment,adding to the U.S. capital stock.

The BEA denes long-lived art works, or arsc originals, as theatrical movies, recordedmusic, books, television programs, and miscellaneous artworks such as play scripts,greeng card designs, and stock photography. Prior to the December 2013 revisions, arscproducon costs were treated as current expenses, much like adversing or shipping costs,and therefore had a limited role in the calculaon of GDP.

However, arsc originals can connue to earn revenue for decades aer producon.(They are, therefore, long-lived.) As noted by the BEA, capitalizing arsc originals is animportant step toward fully recognizing the contribuon of intellectual property products to

economic growth. Recent esmates show that the capitalizaon of entertainment, literary,and arsc originals added $73.8 billion to the U.S. economy in 2011.


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Capitalization of Entertainment, Literary, and Artistic Originals

Additions to Gross Private Domestic Investment, and to GDP

Source: U.S. Bureau of Economic Analysis


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FAQ

What timeframe does the ACPSA reference?

The ACPSA features a full time series ofestimates. For the current iteration of the

ACPSA, estimates are provided for the yearsspanning 1998 to 2011. The revised ACPSA,planned for release in the fall of 2014, willcontain estimates for 1998 through 2012.

Does the ACPSA include work done by self-employed artists?

Yes. Self-employed workers, or soleproprietors, are required to attach aSchedule C (or Schedule C-EZ) to their IRS

Form 1040 individual tax return if theirwork meets certain requirements. First, theprimary purpose for engaging in the activitymust be for the purpose of generatingincome or proit. Second, the self-employedwork must be done regularly.

If these criteria are met, Schedule Cattachments are required of self-employedworkers with business income of $400 overand above expenses.

The Schedule C requires self-employed ilersto indicate the industry of their principalbusiness (self-employed workers engagedin more than one business must attachmultiple Schedules). The industries listed onthe Schedule C are in four-digit NAICS codes.Examples include: independent artists,writers, and performers (NAICS 7115);promoters of performing arts, sports,and similar events (NAICS 7113); andagents and managers for artists, athletes,

entertainers, and other public igures(NAICS 7114).

The U.S. Census Bureau calculates non-employer statistics using IRS Schedule Cilings. In 2011 (the most recent year forwhich non-employer statistics are available),the bureau reported 987,714 individualproprietorships in performing arts,spectator sports, and related industries

(NAICS 711). Of those, 704,356 (more than70 percent) were independent artists,writers, and performers.

The BEA draws on the Census Bureausnon-employer statistics to calculate NIPAsand industry accounts, including the ACPSA.Notably, the BEA adjusts the non-employerdata it uses in its accounts to relect IRSestimates of Schedule C noncompliance.

Does the ACPSA capture independentmusicians who work on contract?

As discussed above, the ACPSA includes

production by self-employed workers,including musicians and other artists.Within the NAICS system, freelancemusicians are included in NAICS 71113,musical groups and artists.

Are there special considerations for tax-exempt arts organizations?

For many of the arts and cultural industriesincluded in the ACPSA, output and valueadded are based on the industries revenues(i.e., sales). However, basing production onthe revenue of tax-exempt organizationswould likely understate that value. Tax-exempt performing arts groups andmuseums, for example, often provide specialdiscounted or free services, resulting,naturally, in lower revenue.

To correct for this potential under-estimation, expenditures in additionto revenues are used to measure the

production of tax-exempt arts and culturalorganizations.

Are there special considerations for museumsand museum workers?

Within NAICS, the museum industry (NAICS71211) excludes college and government-operated museums. Rather, production bycolleges and government are represented


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by their respective sectorseducationalservices (NAICS 61) and government, whichhas no oficial NAICS code.23

What is value added?

The value added of an industry, also

referred to as the industrys gross domesticproduct, is the contribution of a privateindustry or government sector to overallGDP. Value added equals the differencebetween and industrys output and the costof intermediate inputs such as energy costsand the costs of raw materials, semi-inishedgoods, and services.

To illustrate, the output of dance companiesincludes the cost of pointe shoes (the shoes

worn by ballet dancers when dancingen pointe). The value added of dancecompanies excludes the cost of pointe shoes,which were produced by other industriessuch as shoe manufacturers.

What is inal demand?

The ACPSA draws on inter-industry or I-Oanalysis, which, in turn, comprises makeand use tables. The make table shows theproduction of commodities (i.e., goods andservices), while the use table shows the usesof commodities by intermediate and inalusers, or inal demand.

Final demand consists of the transactionsthat make up the inal-expenditurecomponents of GDP: personal consumptionexpenditures; private ixed investment;change in private inventories; exportsand imports; and government. Put simply,inal demand measures the amount of

arts and cultural production purchased byU.S. households (personal consumption);businesses (private ixed investment andchange in private inventories); foreignpurchases (exports); and government.

23 Estimates for the government sector drawheavily from the Census of Governments, which, likethe Economic Census, is conducted by the U.S. CensusBureau every ive years.

Imports are U.S. purchases of foreign-produced arts and cultural commodities,and are subtracted from GDP.

Are the ACPSA estimates adjusted forinlation?

The current ACPSA estimates, and thoseplanned for release in the fall of 2014, arenot adjusted for inlation. Moreover, becausethe BEAs process for generating realestimates is complex, the agency warnsagainst delating ACPSA igures by applyingbroad indexes such as the Gross DomesticProduct Delator or the Consumer PriceIndex. Attempts to delate ACPSA estimateswill likely result in more distortion than ispresent in current-dollar ACPSA estimates.

Can I use the ACPSA to generate measures ofarts and cultural production for my state ormetro area?

Current ACPSA estimates (and the revisedACPSA estimates planned for the fallof 2014) are national calculations anddo not relect regional arts and culturalproduction. Because the BEA has access todata and methodologies unavailable to the

public, national ACPSA estimates cannotbe modiied by users to capture accurateregional production.


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PART II: Accounting for the Nations Arts andCultural Workforce

S 1. A V S A: A N T A C O

A comprehensive measure of arts andcultural production would include not onlycommodities and industries, but also thework done by arts and cultural workers,regardless of the industries employingthem. The ACPSA, for example, measuresemployment in performing arts industries.In 2012, the performing arts employed22,500 musicians and singers. However,the ACPSA excludes religious organizations(e.g., churches, synagogues, missions), anindustry that employed more than 8,000musicians in that year.

This section outlines the occupationaldimension to arts and cultural production

using data from the OccupationalEmployment Survey (OES), produced by theU.S. Bureau of Labor Statistics (BLS). Unlikethe ACPSA, which captures arts and cultural

production by sole proprietors (i.e., non-employers), the OES excludes self-employedworkers. It does, nonetheless, provideemployment and earnings data for detailedoccupations by industry. Consequently, theOES is well-suited to examining arts andcultural workers and the industries in whichthey are employed.

This section presents three tiers of artsand cultural occupations: (1) core arts andcultural occupations; (2) technical andsupporting occupations; and (3) managersworking in arts and cultural industries.Including all three tiers of arts and culturaloccupations reveals the share of the labor

force directly responsible for the productionof arts and cultural goods.

Page 37 lists the data tables that accompanyPart II of this document.

Occupaon Employment Stascs (OES) is a collaborave program between the BLS and

state workforce agencies. The OES surveys 200,000 non-farm establishments every sixmonths, taking three years to fully collect the sample of 1.2 million establishments. OESdata are used to report employment and wage esmates for about 800 occupaons atnaonal, state, metropolitan, and non-metropolitan levels.

The OES also reports employment and wage esmates by industry. At the naonal level,esmates are reported for 450 industries, which are categorized by the North AmericanIndustry Classicaon System (NAICS).

Occupation Employment Statistics


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T 1. C A CO

In accordance with the approach usedby Statistics Canada, the identiicationof U.S. arts and cultural occupationswas guided by asking if the consideredoccupation would cease to exist if thetasks and responsibilities of creative workwere removed. Answering this questionyielded the three tiers of arts and culturaloccupations discussed below.

Workers in core arts and culturaloccupations are responsible for the creativeelement of arts and cultural products,whether produced by an arts and culturalindustry or not. This tier includes 39

distinct occupationsin 2012, employmentin core arts and cultural occupations totaled1.5 million wage and salary workers, whileannual median earnings ranged from$80,880 for art directors to roughly $24,000for loral designers.

Occupations included in Tier 1 span jobs asvaried as architects and designers, reportersand photographers, and multimedia artistsand jewelry makers. Nearly three out of

four occupations on this list are groupedunder the major occupation group labeledarts, design, entertainment, sports, andmedia occupations, or major standardoccupation code 270000.24This majoroccupation group is divided into severalbroad occupation groups comprising corearts and cultural occupations. Drawing onOES data for wage and salary workers in2012, core occupations in the major groupsare summarized below.

As noted above, the OES excludes self-employed workers from its datasets.Therefore, recognizing that self-employedworkers make up a large portion of the U.S.arts workforce, this section uses anotherdata source (the Current Population Survey)

24 Please see Appendix B for a discussion onstandard occupation codes.

to estimate the percentage of self-employedworkers within each occupational categorydescribed below.

Artists and Related Workers (i.e., VisualArtists)

Art directors; craft artists; ine artists;multimedia artists and animators; artists andrelated workers, all others (e.g., calligraphers,tattoo artists)

Main industries: advertising and publicrelations; publishing; independent artists,writers, and performers; motion pictures

Art directors make up the greatest numberof workers in this occupation group

(31,570), while other artists, such ascalligraphers and tattoo artists, are thesmallest (6,850). Art directors are also thebest paid, earning an average annual salaryof $80,880 in 2012; earnings are lowest forcraft artists, whose annual salaries averaged$29,600.

Among core arts and cultural workers,artists and related workers hold some of thehighest rates of self-employment. In 2010,nearly 60 percent of the artists in this groupwere self-employed.

The industries employing the greatestnumbers of salaried artists and relatedworkers include: advertising and publicrelations; independent artists, writers, andperformers; and motion pictures.25In 2012,for example, advertising and public relationsirms employed 11,110 art directorsmorethan one-third of all salaried art directors.Of the 29,270 salaried multimedia artists

and animators, 9,130 (30 percent) workedin the motion picture industry.

25 The U.S. Census Bureau denes independentartists, writers, and performers (NAICS 71151) asfreelance individuals primarily engaged in performingin artistic productions, in creating artistic and culturalworks, or in providing technical expertise necessary forthese productions. The independent artists, writers, and

performers shown here refer to business establishmentswith workers on payrolls.


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Designers

Fashion designers; loral designers; graphicdesigners; interior designers; merchandisedisplayers and window trimmers; set andexhibit designers; designers, all other (e.g.,

jewelry and fur designers)

Main industries: specialized design services;publishing; manufacturing; retail sales

In this group, graphic designers number thelargest. In 2012, 191,440 salaried graphicdesigners were employed. Alternatively,set and exhibit designers and designersclassiied as other, (e.g., jewelry and furdesigners) make up the smallest numberof workers in this grouproughly 8,000employed in both occupations.

Among design professionals, fashiondesigners and industrial designers earnthe highest annual salaries$62,860 and$59,610, respectively, on average, in 2012.

Like visual artists, high percentages ofdesigners are self-employedabout 30percent of each design occupation. However,among salaried workers in this group,industries employing the greatest numbers

vary by type of designer. Specialized designcompanies (companies that specialize ingraphic, industrial, and fashion design),manufacturing, and publishing industriesemploy signiicant numbers of designers.In 2012, for example, publishing industriesstaffed roughly 25,000 graphic designers(nearly the same number staffed byspecialized design companies); loristsshops, under retail sales, employed 31,220loral designersmore than 65 percent of

the salaried workers in that occupation.

Performing Artists

Actors; producers and directors; dancers;choreographers; music directors andcomposers; musicians and singers; otherentertainers (e.g., comedians, jugglers,acrobats)

Main industries: performing arts; motionpictures; educational services; broadcasting

In 2012, salaried actors numbered 70,540,and producers and directors numbered87,010. Employment for salaried dancersand choreographers was lower11,390 and7,400, respectively. Musicians and singerstotaled 42,100, while music directors andcomposers were 24,940 in number. In 2012,16,630 wage and salary workers wereemployed as other entertainers.

Due to disclosure concerns, OES data omitearnings for many of the performing artsoccupations in this group. Of those tracked,however, producers and directors earn thehighest salariesannual median earnings of$71,350 in 2012.

Among performing artists, rates of self-employment range from a high of about 43

percent of musicians and other entertainers,to a low of 9-10 percent of dancers andchoreographers.

Not surprisingly, the performing artsindustry hires many performing artists.However, motion pictures, schools,broadcasting, and even religiousorganizations factor in, too. In 2012, forexample, almost 80 percent of salariedchoreographers were employed by otherprivate schools, an industry that includesine arts and dance schools.

The motion picture industry employs moreproducers and directors than any otherindustrynearly 35,000 in 2012. Rankinga close second, however, is radio andtelevision, which staffed roughly 20,000producers and directors. And of the 42,100salaried musicians in 2012, half were


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employed by performing arts companies,but another 20 percent were on staff atreligious organizations such as churches andsynagogues.

In 2012, motion pictures and the performingarts, combined, employed roughly three

in ive salaried actors. However, a sizablenumber of actors, 15,400 in 2012, areemployed by accounting, tax preparation,bookkeeping, and payroll services. Thisresult, seemingly unusual at irst glance,relects theatrical production concernsforming separate companies to carry outtheir payroll functions, including payingengaged actors.

Announcers

Radio and television announcers; publicaddress system and other public announcers

Main industries: radio and televisionbroadcasting; drinking places (i.e., bars);independent artists, writers, and performers

Although radio and television announcersfar outnumber public address and otherpublic announcers (31,340 vs. 8,120),earnings among workers in theseoccupations are comparable, with radioand television announcers earning anaverage salary of $28,020 in 2012, andpublic address announcers earning $26,230.Additionally, 35 percent of workers in bothoccupations are self-employed.

Differences exist, however, in the industriesemploying the two occupations. Most radioand television broadcasters work in radio,rather than television broadcasting (25,440

announcers in 2012), while most publicaddress system announcers (which includesdisc jockeys at weddings, parties, and otherpublic events) work in drinking places, i.e.,bars (2,590), and in the industry labeledindependent artists, performers, and writers(1,970).

Media Occupations

Broadcast news analysts; reporters andcorrespondents; editors; writers and authors;

photographers

Main industries: newspaper publishers;

television broadcasting; photographicservices

Of the media occupations included in Tier 1,editors number the largest99,000 salariedworkers in 2012. Next in employment rankare photographers (56,140); reportersand correspondents (45,570); writers andauthors (41,990); and broadcast newsanalysts (5,170).

Editors, writers and authors, and broadcast

news analysts all earn roughly $54,000to $55,000, annually, on average, whilephotographers earn an average of $28,490.Photographers also have high self-employment rates (almost 63 percent in2012), compared with self-employmentrates of 14-16 percent of reporters andcorrespondents and of editors.

Among all workers in arts and culturaloccupations, writers and authors have the

highest self-employment rate68 percentin 2012.

Among wage and salary media workers,however, newspaper publishing is amain employer. In 2012, newspaperpublishers staffed 25,980 reporters andcorrespondents and 21,760 editors.Although newspaper publishers hire writersand authors (3,550 in 2012), salariedworkers in this occupation are also likelyto be employed by advertising and publicrelations irms (6,190), motion pictureindustries (3,300), and independent artists,writers, and performers (3,060).

In 2012, newspaper publishers staffed 3,480photographers. However, most salariedphotographers (37,560) work in photo-graphic services, which includes portraitand commercial photography studios.


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Education and Library Occupations

Art, drama, and music teachers,postsecondary; English language andliterature teachers, postsecondary;communications teachers, postsecondary;archivists; curators; audio-visual and

multimedia collection specialists; librarians

Main industries: colleges and universities;elementary and secondary schools;

government; museums and historical sites

Among this group of core arts and culturaloccupations, librarians and postsecondaryart and drama teachers number the largest.In 2012, librarian employment totaled140,280 and college art teachers totaled92,570.26Postsecondary art, drama, andmusic teachers, however, are better paid,earning an annual average of $62,160in 2012 compared with average annualearnings of $55,370 for librarians.

The postsecondary education occupationsincluded here also include English languageand literature teachers and communicationsteachers, and architcture teachers,numbering 72,680, 30,030, and 7,290workers, respectively, in 2012. In that same

year, postsecondary teachers in English andin communications earned between $60,000and $62,000, on average; architectureteachers earned an average annual salary of$71,610.

In 2012, salaried curators numbered 10,370,while archivists numbered roughly half thatnumber (5,640). Employment among audio-visual and multimedia collection specialiststotaled 8,690 in 2012. Average annual

earnings for workers in these occupationsranged from $49,590 for curators and$47,340 for archivists, to $43,350 for audio-visual and multimedia collection specialists.

Few workers in education and libraryoccupations are self-employedvirtually no

26 Includes design and craft teachers and arthistory professors.

librarians and only 2.6 percent of curatorsare self-employed. Rather, governmentsemploy many of the people in theseprofessions. For example, local governments(including public libraries and publicelementary and secondary schools) staffed96,700 librarians, or almost 70 percent of

workers in the occupation. Government,state governments to be speciic, alsoemploys many curators (1,500 in 2012).However, curators are more commonlyemployed by museums and historicalsites5,660 in 2012.

Architects

Architects; landscape architects

Main industries: architectural andengineering services; government

Measuring salaried workers, the OES reports82,720 architects and 15,750 landscapearchitects in 2012. Annual median earningsfor the two occupations were $73,090 and$64,180, respectively.

Roughly one-quarter of workers in bothoccupations are self-employed. Butamong salaried architects and landscapearchitects, most work in architectural andengineering services (an industry thatincludes architectural services irms). In2012, architectural and engineering servicesemployed 71,160 architects (86 percentof the salaried profession) and 9,090landscape architects (58 percent of salariedlandscape architects).

Agents and Business Managers of Artists,

Performers, and Athletes

Main industries: agents and managers forartists, entertainers, athletes, and other

public igures; promoters of performing arts,sports, and similar events

Half of all agents and business managers areself-employed. However, the OES reported11,770 salaried workers in this occupation


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in 2012; their average annual salary was$63,370.

Most salaried agents and managers ofartists, performers, and athletes work in theindustry producing their services, agentsand managers for artists, athletes, and

other public igures, or in promoters ofperforming arts, sports, and similar events.In 2012, these two industries employed7,320 and 1,000 agents and managers,respectively.

Jewelers and Precious Stone and MetalWorkers

Jewelers and precious stone and metalworkers, a specialized type of craft artist,

numbered 22,060 in 2012their averageannual earnings were $35,350.

Most jewelers and precious stone/metalworkers are employed by jewelry, luggage,and leather goods stores (10,700) or bymanufacturers of jewelry and silverware(6,930).27

27 Most OES statistics by occupation are reportedat the four-digit industry level. Jewelry, luggage, andleather goods stores, NAICS 4483, includes the moredetailed industry, jewelry stores, NAICS 44831. Most

jewelers working in this retail trade industry are likelyemployed by jewelry stores, rather than by luggage orleather goods stores.

T 2. T SO

While the occupations listed in Tier 1represent the primary source of artsand cultural creativity, the technical andsupporting occupations in Tier 2 arerequired to assemble and distribute artsand cultural products. This tier comprises23 occupations spanning jobs as variedas library technicians, printers, and forestconservationists. Employment in salariedtechnical and supporting occupationstotaled 715,700 in 2012, and median annualwages for workers in these occupationsranged from a high of $64,450 (theatricaland performance make-up artists) to a lowof $18,750 (models).

Rates of self-employment luctuate amongtechnical and supporting occupations. Forexample, roughly one-third of ilm and videoeditors and camera operators are self-employed. Alternatively, self-employmentrates are virtually zero among librarytechnicians, costume attendants, and printbinders.

The following summarizes the technical and

supporting occupations in Tier 2.

Museum and Library Technicians

Main industries: museums; government

Library technicians100,230 employed in2012largley work in local government(i.e., local government libraries) and in localgovernment schools. Museum techniciansand conservators10,430 employed in2012generally work in the industrylabeled museums, historical sites, andsimilar institutions, and for the federalgovernment.

Workers in both occupations earned medianannual salaries of roughly $30,000 to$38,000; few library or museum techniciansare self-employed.


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Media and Communication EquipmentWorkers

Audio and video equipment technicians;broadcast technicians; radio operators; soundengineering technicians; camera operators,television and motion picture; ilm and video

editors

Main industries: motion pictures;broadcasting

Among media and communicationequipment workers, audio and videotechnicians are the most prevelant54,310salaried workers in this occupation in2012. Broadcast technicians, who set upand operate the electronic equipmentused to transmit radio and televisionprograms, numbered 31,640. Film andvideo editors, though fewer in number, arethe best paid media and communicationequipment workersin 2012, workers inthis occupation earned an annual average of$51,300.

Motion picture and video industries (NAICS5121) are a major employer of media andcommunication equipment workers. In2012, for example, this industry staffed

13,280 ilm and video editors and 7,350audio and video equipment technicians.Broadcasting, too, employs media andcommunication equipment workersthreeout of four salaried broadcast techniciansworks in the radio and televisionbroadcasting industry (NAICS 5151).

Personal Care and Service Occupations

Motion picture projectionists; costume

attendants; makeup artists, theatrical andperformance

Main industries: motion pictures; performingarts

In 2012, employment numbered 8,030motion picture projectionists; 5,660costume attendants; and 1,950 makeupartists. Although small in number, makeup

artists earn the most among the personalcare and service occupations on Tier2$64,450, on average, in 2012; makeupartists are also more likely to be self-employed.

Motion picture and video industries employ

90 percent of motion picture projectionistsand more than 50 percent of theatricaland performance makeup artists. Costumeattendants also work in motion picturesand videos (about 20 percent of wage andsalary attendants), but they are more likelyto work for performing arts companies,who staff more than 35 percent of costumeattendants.

Installation, Repair, and MaintenanceOccupations

Camera and photographic equipmentrepairers; musical instrument repairers andtuners

Main industries: professional and commercialequipment supplies merchant wholesalers;sporting goods, hobbies, and musicalinstrument stores; personal and household

goods repair and maintenance

Wage and salary employment amongcamera and photographic equipmentrepairers and musical instrument repairersand tuners totaled 2,590 and 7,130,respectively, in 2012.

Roughly 13 percent of workers in bothoccupations are self-employed. Amongwage and salary workers, however, cameraand photographic equipment repairersgenerally work in wholesale trade of

commercial equipment and supplies (i.e.,photographic equipment and supplies).Musical instrument repairers and tunerstend to work in music stores (part of theindustry labeled sporting goods, hobbies,and musical instrument stores) andpersonal and household goods repair andmaintenance, an industry that includesmusical instrument repair shops.


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Production Occupations

Printing press operators; print binding andinishing workers; etchers and engravers;pre-press technicians and workers;photographic process workers; molders,shapers, and castors (i.e., manufacturing

potters)

Main industries: printing; manufacturing;warehouse clubs and supercenters

The production occupations included inTier 2 are jobs related to printing, as wellas photographic process workers andmanufacturing potters. By far, printing pressoperators number the largest173,010in 2012and are among the better-paidproduction occupations listed in Tier 2average annual salary of $34,690 in 2012.Other printing-related occupations includedhere are print binding and inishing workers(52,960 employed), etchers and engravers(8,610 employed), and pre-press techniciansand workers (41,420 employed).28

With the exception of etchers and engravers,who have a self-employment rate of about26 percent, few workers in productionoccupations are self-employed. Printing

industries employ many productionworkers. For example, in 2012, 100,810printing press operators (almost 60 percentof the profession) worked in the industrylabeled printing and related supportactivities (NAICS 323100). The percentageworking in printing is even larger (82percent) among print binding and inishingworkers.

Manufacturing potters (i.e., molders,

shapers, and castors) are similarlyconcentrated in the manufacture ofnonmetallic mineral products (e.g.,clay)60 percent of the occupation, whilephotographic processing workers are likelyto be employed in general merchandise

28 Pre-press technicians and workers formatand proof text and images submitted by designersand clients into inished pages that can be printed.Digital and photo type-setting is part of this work.

stores and in photo-inishing shops. Generalmerchandise stores (e.g., warehouseclubs and supercenters) employed 18,630photographic processing workers in 2012.

Other Technical and Supporting Occupations

Forest and conservation technicians; models;desktop publishers

Main industries: government; clothing andclothing accessory stores; publishing

Four other occupations round out the list ofarts and cultural technical and supportingoccupations: forest and conservationworkers, tour guides, models, and desktoppublishers. Forest and conservation

technicians, an occupation category thatincludes forest rangers, predominately workin government, the federal government,in particular. In 2012, there were 31,720employed forest and conservationtechnicians. Of these, 30,220 worked ingovernment23,460 in federal government.In 2012, annual median earnings for forestand conservation technicians was $33,920.

In 2012, tour guides numbered nearly35,500, and many (12,280 in 2012) workedin museums and historical sites.

The OES reports 4,330 employed wage andsalary models in 2012; their average annualearnings were $18,750. Most models workin clothing and clothing accessory stores,though 14.5 percent are self-employed.

Among desktop publishers, 9 percent areself-employed. Salaried desktop publishers,numbering 15,960 in 2012, earned an

annual average of $37,040, and many (5,320in 2012) work in publishing.


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T 3. M O

Not speciic to arts and cultural industries,but required for their production, aremanagement occupations. Using the OES,Tier 3 combines management occupationsand selected industry data to enumerate

arts and cultural managers.29

The OES does not provide the level of detailreported in the ACPSA. For example, theACPSA includes advertising agencies amongits arts and cultural commodities andindustries. The ACPSA, however, excludespublic relations irms, media-buying agents,and direct mail advertising (i.e., couponsand liers). The inest level of industrydetail available from the OES, alternatively,

aggregates each of these industries intoNAICS 5418, advertising, public relations,and related services.

Consequently, the management occupationslisted in Tier 3 relate to 16 broadlydeined arts and cultural industries. TheACPSA, alternatively, delineates roughly69 industries. Even so, Tier 3 provides anample picture of the contributions of artsand cultural managers.

In 2012, the arts and cultural industriespresented in Tier 3 employed nearly153,000 managers. Advertising and publicrelations (and related services) staffed thegreatest number of managers (48,300),followed by newspaper, periodical, book anddirectory publishers, with 32,310 managersin 2012.30Combined, these two industriesstaffed 50 percent of all the managersemployed by the arts and cultural industriescaptured in Tier 3.

Advertising and public relations alsoemploy the best-paid managers includedin Tier 3. Among all management workers

29 The managers reported in Tier 3 arerepresented by SOC code 11-0000, a broad categorythat includes chief executives, marketing managers,and human resource managers.

30 The ACPSA excludes directory publishers.

in advertising and public relations (andrelated services), annual earnings averaged$127,940 in 2012. Notably, this high averagewas propelled by the industrys 4,000marketing managers earning an average of$134,080 in 2012.

Managers working in televisionbroadcasting and motion picture industriesalso earned comparatively high salariesaveraging roughly $118,000 in annualearnings for managers in both industries.Television broadcasting employed 300marketing managers (earning an average of$136,930), and motion picture industriesstaffed 1,090 marketing managers (earningan average of $132,740).

Managers working in the performingarts and in museums and historical sites,alternatively, are among the lowest paid. In2012, management earnings in the arts andmuseums averaged $73,510 and $79,740,respectively.

Training and development managers,though few in number, are among the bestpaid managers working in the performingarts. In 2012, training managers, anoccupation that includes the title ofeducation director, numbered only 30in the performing arts. Their earnings,however, averaged $102,680 in 2012,an amount second only to the earningsreported for the 360 chief executivesworking in the performing arts, and whoearned an average salary of $157,660.

In 2012, the museums and historical sitesindustry employed 1,610 operationsand specialty managers, a management-

occupation group that includes managersof computer and information systems,and of inance. With the exception ofchief executives, computer and inancialmanagers are the industrys best paidmanagement workers, earning anannual average of $95,690 and $92,710,respectively, in 2012.


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S 2. L A O (A N-A) WA C I

Section 1 examined arts and culturaloccupations, and their associated industries,

in core, technical and supporting, andmanagement categories. This section furthersifts through OES data to show the wideroccupational range of workers employedin arts and cultural industries. Thesetabulations show that arts, design, andmedia occupations rank irst in employmentin ma

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