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New Casinos and Local Labor Markets: Evidence from Canada

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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.

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Bibliographic Info

Paper provided by University of Alberta, Department of Economics in its series Working Papers with number 2012-16.

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Length: 42 pages
Date of creation: 01 Jul 2012
Date of revision: 01 Nov 2012
Handle: RePEc:ris:albaec:2012_016

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Keywords: casinos; gambling; job multipliers; local economic development; local labor markets;

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References

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  1. Douglas M. Walker, 2008. "Do Casinos Really Cause Crime?," Econ Journal Watch, Econ Journal Watch, vol. 5(1), pages 4-20, January.
  2. Marchand, Joseph, 2010. "Local Labor Market Impacts of Energy Boom-Bust-Boom in Western Canada," Working Papers 2010-17, University of Alberta, Department of Economics, revised 01 Mar 2011.
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Cited by:
  1. Huang, Haifang & Humphreys, Brad & Zhou, Li, 2014. "Do Urban Casinos Affect Nearby Neighborhoods? Evidence from Canada," Working Papers 2014-2, University of Alberta, Department of Economics, revised 01 Mar 2014.

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  1. Labor Economics (ECON 431)

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