The Effect of Casinos on Local Labor Markets: A County Level Analysis
AbstractThe economic outcomes surrounding the dramatic spread of “Las Vegas” style casinos in the United States has become a point of great interest and inquiry both politically and academically. Prior research has tended to focus on regional studies and provided uniform conclusions regardless of differences in the nature of the community. Moreover, much of the previous empirical work fails to account for local level trends during estimation. By using a comprehensive data set on employment and earnings from across the US, and by including county-specific trends, this research hopes to alleviate these earlier concerns, as well as help reconcile differences in the early literature surrounding casino effects on related industrial sectors. Basic findings suggest that counties experience an increase in employment after a casino opens, but there seems to be no measurable effect on average earnings. More detailed analysis reveals that the effect on industries related to casinos is somewhat mixed, but in general mildly positive, as casinos provide a positive employment and earnings spillovers into the surrounding local community. Intertemporal estimation suggests that the casino effect changes over time, but also finds that time effects vary across sectors. Estimates of how overall effects vary across different population sizes find that employment growth is inversely related to county population. Finally, additional estimation finds little impact on employment levels in neighboring counties, although there are some small effects in certain industries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Buckingham Press in its journal Journal of Gambling Business and Economics.
Volume (Year): 2 (2008)
Issue (Month): 2 (September)
Contact details of provider:
Web page: http://www.ubpl.co.uk/
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- 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 01 Nov 2012.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross).
If references are entirely missing, you can add them using this form.