Tourism and Growth in the Local Labor Market

Laura Conti, Marco Francesconi, Giulio Papini and Michel Serafinelli
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Laura Conti: Bank of Italy
Giulio Papini: Bank of Italy
Michel Serafinelli: King’s College London

No 2532, RFBerlin Discussion Paper Series from Rockwool Foundation Berlin (RF Berlin)

Abstract: This paper documents how the local labor market (LLM) responds to a change in touristic attractiveness. Leveraging largely underutilized data from several sources, we exploit a unique classification of Italian localities based on their main touristic assets and aggregate trends in foreign tourists' choices in a shift-share research design. Looking at all LLMs, we find a positive relationship between changes in attractiveness and changes in the local tourism-related economic activity, with a positive impact on tourism expenditure and tourism employment, but no effect on total employment. In high-unemployment LLMs, however, we find evidence of sizable total employment effects and indirect effects generated through industries related to tourism and firms in the nontradable sector and the manufacturing sector.

Keywords: local economic activity; tourism; job growth; unemployment; heterogeneity; natural resource curse. (search for similar items in EconPapers)
JEL-codes: J21 R11 R12 R23 Z30 (search for similar items in EconPapers)
Date: 2025-07
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Related works:
Working Paper: Tourism and Growth in the Local Labor Market (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:crm:wpaper:2532

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