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The Impact of College Athletics on Employment in the Restaurant and Accommodations Industries

Author

Listed:
  • Bernard F. Lentz

    (Drexel University)

  • David N. Laband

    (Auburn University)

Abstract

In this paper, we analyze Metropolitan and Micropolitan Statistical Area (MSA)-level data in the U.S. to examine the economic impact of college athletics. Specifically, we examine the relationship between total athletics revenues (aggregated across all colleges in an MSA) and MSA-level employment in the accommodations and food services industries. Controlling for a variety of other factors that might influence hotel/restaurant employment within an MSA, we find that below $40 million (in 2005) in college athletics revenues there is no evidence that college athletics affects MSA employment in the food services and accommodations industries. However, above $40 million we find highly significant impacts on employment in the food services and accommodations industries that climb with college sports revenue generation.

Suggested Citation

  • Bernard F. Lentz & David N. Laband, 2008. "The Impact of College Athletics on Employment in the Restaurant and Accommodations Industries," Working Papers 0803, International Association of Sports Economists;North American Association of Sports Economists.
    • Handle: RePEc:spe:wpaper:0803
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    References listed on IDEAS

    as
    1. Robert Baade & Robert Baumann & Victor Matheson, 2011. "Big Men on Campus: Estimating the Economic Impact of College Sports on Local Economies," Regional Studies, Taylor & Francis Journals, vol. 45(3), pages 371-380.
    2. Marc Lavoie & Gabriel Rodríguez, 2005. "The Economic Impact of Professional Teams on Monthly Hotel Occupancy Rates of Canadian Cities," Journal of Sports Economics, , vol. 6(3), pages 314-324, August.
    3. Siegfried, John J. & Sanderson, Allen R. & McHenry, Peter, 2007. "The economic impact of colleges and universities," Economics of Education Review, Elsevier, vol. 26(5), pages 546-558, October.
    4. John Siegfried & Andrew Zimbalist, 2002. "A Note on the Local Economic Impact of Sports Expenditures," Journal of Sports Economics, , vol. 3(4), pages 361-366, November.
    5. Coates, Dennis & Humphreys, Brad R., 2003. "The effect of professional sports on earnings and employment in the services and retail sectors in US cities," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 175-198, March.
    6. Robert Baade & Robert Baumann & Victor Matheson, 2007. "Down, Set, Hike: The Economic Impact of College Football Games on Local Economies," Working Papers 0702, College of the Holy Cross, Department of Economics.
    7. Franklin Mixon & Rand Ressler, 1995. "An empirical note on the impact of college athletics on tuition revenues," Applied Economics Letters, Taylor & Francis Journals, vol. 2(10), pages 383-387.
    8. Robert A. Baade & Robert W. Baumann & Victor A. Matheson, 2008. "Assessing the Economic Impact of College Football Games on Local Economies," Journal of Sports Economics, , vol. 9(6), pages 628-643, December.
    9. McCormick, Robert E & Tensley, Maurice, 1987. "Athletics versus Academics? Evidence from SAT Scores," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 1103-1116, October.
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    Cited by:

    1. Dennis Coates, 2009. "Hotel Tax Collections and a Local Mega-Event," Working Papers 0901, International Association of Sports Economists;North American Association of Sports Economists.
    2. Daniel I. Rees & Kevin T. Schnepel, 2009. "College Football Games and Crime," Journal of Sports Economics, , vol. 10(1), pages 68-87, February.
    3. Rhodes, M. Taylor, 2013. "Pigskin, Tailgating and Pollution: Estimating the Environmental Impacts of Sporting Events," UNCG Economics Working Papers 13-19, University of North Carolina at Greensboro, Department of Economics.

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    More about this item

    Keywords

    sports; college athletics; economic impact; food services and accommodations; tourism;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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