The Factor Sectors
A factor of production is a stock that generates a flow of services used in the production of goods and services. In a SAM, value added is distributed through the factors of production to household owners of factors. The two factors of production have been sectored out for SAM: Labor and all other factors aggregated into “Capital.”
In this SAM, the total value added allocated to Labor is $678.30 billion and to Capital, $488.05billion.
The factor sectors, in turn, pay households and outside of California households the factor income.