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Do More Tourists Promote Local Employment?

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  • González, Libertad

    (Universitat Pompeu Fabra)

  • Surovtseva, Tetyana

    (University of Barcelona)

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.

Suggested Citation

  • González, Libertad & Surovtseva, Tetyana, 2024. "Do More Tourists Promote Local Employment?," IZA Discussion Papers 17518, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17518
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    Cited by:

    1. Ismael Gálvez-Iniesta & José L. Groizard, 2021. "Undocumented Migration and Electoral Support: Evidence From Spain," Politics and Governance, Cogitatio Press, vol. 9(4), pages 196-209.
    2. Ismael Gálvez-Iniesta & José L. Groizard & Ferran Portella-Carbó, 2023. "Sharing my place: the local labor market impact of the P2P technology shock," DEA Working Papers 97, Universitat de les Illes Balears, Departament d'Economía Aplicada.

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    More about this item

    Keywords

    employment; tourism; local labor markets; shift-share; terrorism; Spain;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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