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New Casinos and Local Labor Markets: Evidence from Canada

Author

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  • Humphreys, Brad

    (University of Alberta, Department of Economics)

  • Marchand, Joseph

    (University of Alberta, Department of Economics)

Abstract

The local labor market effects of new casinos are examined by comparing the employment and earnings growth in areas with new casinos to the growth in areas with existing casinos and without casinos, exploiting numerous casino openings across multiple locations in Canada over several time periods. The opening of a new casino directly doubles the employment and earnings of the local gambling industry within five years, while the growth does not appear to continue beyond this period. Indirect positive spillovers are limited to the related local hospitality and entertainment industries. For every job created in the gambling industry, roughly one to two additional hospitality jobs are created. Increased gambling employment does not appear to increase employment in any other local industry.

Suggested Citation

  • Humphreys, Brad & Marchand, Joseph, 2012. "New Casinos and Local Labor Markets: Evidence from Canada," Working Papers 2012-16, University of Alberta, Department of Economics, revised Jun 2013.
    • Handle: RePEc:ris:albaec:2012_016
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    File URL: https://sites.ualberta.ca/~econwps/2012/wp2012-16.pdf
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    References listed on IDEAS

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    Cited by:

    1. Scavette, Adam, 2023. "The economic impact of a casino monopoly: Evidence from Atlantic City," Regional Science and Urban Economics, Elsevier, vol. 103(C).
    2. Charlotte Senftleben-König, "undated". "Public Sector Employment and Local Multipliers," BDPEMS Working Papers 2014010, Berlin School of Economics.
    3. Melisa Bubonya & David P. Byrne, 2020. "Supplying Slot Machines to the Poor," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 1081-1109, January.
    4. Haifang Huang & Brad R. Humphreys & Li Zhou, 2018. "Do urban casinos affect nearby neighbourhoods? Evidence from Canada," Papers in Regional Science, Wiley Blackwell, vol. 97(3), pages 757-784, August.
    5. Chang, Juin-Jen & Fiedler, Ingo & Lai, Ching-Chong & Wang, Ping, 2021. "Cross-border casino competition, Externalities and Optimal Tax Policy: A Unified Theory with Quantitative Analysis," Regional Science and Urban Economics, Elsevier, vol. 88(C).
    6. Brad R. Humphreys & Brian P. Soebbing, 2014. "Access to Legal Gambling and the Incidence of Crime: Evidence from Alberta," Growth and Change, Wiley Blackwell, vol. 45(1), pages 98-120, March.
    7. Chakraborty Avinandan & Doremus Jacqueline & Stith Sarah, 2021. "The effects of recreational cannabis access on labor markets: evidence from Colorado," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-86, January.
    8. Amir Borges Ferreira Neto & Collin D. Hodges & Hyunwoong Pyun, 2016. "Voting Dynamics and the Birth of State-owned Casinos in Kansas," Economics Bulletin, AccessEcon, vol. 36(1), pages 329-336.
    9. Joseph Marchand & Jeremy Weber, 2018. "Local Labor Markets And Natural Resources: A Synthesis Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 469-490, April.
    10. Siew Hoon Lim & Lei Zhang, 2017. "Does Casino Development Have a Positive Effect on Economic Growth?," Growth and Change, Wiley Blackwell, vol. 48(3), pages 409-434, September.
    11. Justus Haucap & Radivoje Nedic & Talha Şimşek, 2023. "Regulatory objectives vs fiscal interests: Are German casino locations motivated by beggar-thy-neighbor policy? An empirical analysis," European Journal of Law and Economics, Springer, vol. 55(2), pages 291-311, April.

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    More about this item

    Keywords

    casinos; gambling; job multipliers; local economic development; local labor markets;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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