Do More Tourists Promote Local Employment?

Libertad Gonzalez and Tetyana Surovtseva ()

No 17518, IZA Discussion Papers from IZA Network @ LISER

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: View citations in EconPapers (1)

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

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