Do More Tourists Promote Local Employment?

Libertad Gonzalez and Tetyana Surovtseva ()

No 17518, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We analyze the impact of tourist flows on local labor markets, following a novel identification strategy that uses temporary shocks in alternative international destinations to instrument for tourism flows across Spanish regions. We find that a one standard deviation increase in tourist inflows leads to a 1 percentage-point increase in employment in the tourism industry and in other services, but it does not increase total employment, labor force participation, or wages in local economies. Instead, the positive impact on services is compensated by a fall in employment in other industries, most notably manufacturing.

Keywords: employment; tourism; local labor markets; shift-share; terrorism; Spain (search for similar items in EconPapers)
JEL-codes: J21 (search for similar items in EconPapers)
Pages: 82 pages
Date: 2024-12
New Economics Papers: this item is included in nep-lma, nep-tur and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://docs.iza.org/dp17518.pdf (application/pdf)

Related works:
Working Paper: Do More Tourists Promote Local Employment? (2020)
Working Paper: Do more tourists promote local employment? (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp17518

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().