Do More Tourists Promote Local Employment?

Libertad Gonzalez and Tetyana Surovtseva ()
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Tetyana Surovtseva: University of Barcelona

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
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Related works:
Working Paper: Do More Tourists Promote Local Employment? (2020)
Working Paper: Do more tourists promote local employment? (2020)
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