New Casinos and Local Labor Markets: Evidence from Canada
AbstractThe 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.
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 InfoPaper provided by University of Alberta, Department of Economics in its series Working Papers with number 2012-16.
Length: 42 pages
Date of creation: 01 Jul 2012
Date of revision: 01 Nov 2012
casinos; gambling; job multipliers; local economic development; local labor markets;
Other versions of this item:
- Humphreys, Brad R. & Marchand, Joseph, 2013. "New casinos and local labor markets: Evidence from Canada," Labour Economics, Elsevier, vol. 24(C), pages 151-160.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-08-23 (All new papers)
- NEP-LMA-2012-08-23 (Labor Markets - Supply, Demand, & Wages)
- NEP-URE-2012-08-23 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Earl L. Grinols & David B. Mustard, 2005.
"Casinos, Crime, and Community Costs,"
Law and Economics
- Marchand, Joseph, 2010.
"Local Labor Market Impacts of Energy Boom-Bust-Boom in Western Canada,"
2010-17, University of Alberta, Department of Economics, revised 01 Mar 2011.
- Marchand, Joseph, 2012. "Local labor market impacts of energy boom-bust-boom in Western Canada," Journal of Urban Economics, Elsevier, vol. 71(1), pages 165-174.
- Thomas A. Garrett, 2004. "Casino gaming and local employment trends," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 9-22.
- Kearney, Melissa Schettini, 2005. "The Economic Winners and Losers of Legalized Gambling," National Tax Journal, National Tax Association, vol. 58(2), pages 281-302, June Cita.
- William N. Evans & Julie H. Topoleski, 2002. "The Social and Economic Impact of Native American Casinos," NBER Working Papers 9198, National Bureau of Economic Research, Inc.
- Earl L. Grinols & David B. Mustard, 2008. "Correctly Critiquing Casino-Crime Causality," Econ Journal Watch, Econ Journal Watch, vol. 5(1), pages 21-31, January.
- Juin-Jen Chang & Ching-Chong Lai & Ping Wang, 2010. "Casino regulations and economic welfare," Canadian Journal of Economics, Canadian Economics Association, vol. 43(3), pages 1058-1085, August.
- Douglas M. Walker & John D. Jackson, 2007. "Casinos and Economic Growth," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(3), pages 593-607, 07.
- Joshua Angrist & Alan Krueger, 1998.
"Empirical Strategies in Labor Economics,"
98-7, Massachusetts Institute of Technology (MIT), Department of Economics.
- Michael Wenz, 2007. "The Impact of Casino Gambling on Housing Markets: A Hedonic Approach," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 1(2), pages 101-120, June.
- Earl L. Grinols & David B. Mustard, 2008. "Connecting Casinos and Crime: More Corrections of Walker," Econ Journal Watch, Econ Journal Watch, vol. 5(2), pages 156-162, May.
- Guido Imbens & Jeffrey Wooldridge, 2008.
"Recent developments in the econometrics of program evaluation,"
CeMMAP working papers
CWP24/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
- Imbens, Guido W. & Wooldridge, Jeffrey M., 2008. "Recent Developments in the Econometrics of Program Evaluation," IZA Discussion Papers 3640, Institute for the Study of Labor (IZA).
- Imbens, Guido & Wooldridge, Jeffrey M., 2009. "Recent Developments in the Econometrics of Program Evaluation," Scholarly Articles 3043416, Harvard University Department of Economics.
- Guido M. Imbens & Jeffrey M. Wooldridge, 2008. "Recent Developments in the Econometrics of Program Evaluation," NBER Working Papers 14251, National Bureau of Economic Research, Inc.
- Chad Cotti, 2008. "The Effect of Casinos on Local Labor Markets: A County Level Analysis," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 2(2), pages 17-41, September.
- William R. Eadington, 1999. "The Economics of Casino Gambling," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 173-192, Summer.
- Cotti, Chad D. & Walker, Douglas M., 2010. "The impact of casinos on fatal alcohol-related traffic accidents in the United States," Journal of Health Economics, Elsevier, vol. 29(6), pages 788-796, December.
- Melissa S. Kearney, 2005. "The Economic Winners and Losers of Legalized Gambling," NBER Working Papers 11234, National Bureau of Economic Research, Inc.
- Dan Black & Terra McKinnish & Seth Sanders, 2005. "The Economic Impact Of The Coal Boom And Bust," Economic Journal, Royal Economic Society, vol. 115(503), pages 449-476, 04.
- Enrico Moretti, 2010. "Local Multipliers," American Economic Review, American Economic Association, vol. 100(2), pages 373-77, May.
- Walker, Douglas M. & Jackson, John D., 1998. "New Goods and Economic Growth: Evidence from Legalized Gambling," The Review of Regional Studies, Southern Regional Science Association, vol. 28(2), pages 47-70, Fall.
- Douglas M. Walker, 2008. "The Diluted Economics of Casinos and Crime: A Rejoinder to Grinols and Mustardâ€™s Reply," Econ Journal Watch, Econ Journal Watch, vol. 5(2), pages 148-155, May.
- Douglas M. Walker, 2008. "Do Casinos Really Cause Crime?," Econ Journal Watch, Econ Journal Watch, vol. 5(1), pages 4-20, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Brenda Carrier).
If references are entirely missing, you can add them using this form.