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The impact of casinos on employment across sectors in Macau


  • Hsiao-Chuan Chang


This paper investigates a contemporary issue of Macau concerning the impact of casinos on other sectors' employment. The long-run and short-run effects are investigated using data-oriented econometric models. In the long-run, the casino boom leads to an employment expansion in other sectors. However, the effect is insignificant in the short-run. Simulations from a theoretical model disclose the pure crowding-out effect of the increased casino employment on other sectors with other things the same as the situation of 2003. During the period 2004-2008, the crowding-out effect is more serious on the non-casino service sector than on the industrial sector. Results from both types of models shed light on policy options.

Suggested Citation

  • Hsiao-Chuan Chang, 2010. "The impact of casinos on employment across sectors in Macau," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 8(4), pages 427-444.
  • Handle: RePEc:taf:jocebs:v:8:y:2010:i:4:p:427-444
    DOI: 10.1080/14765284.2010.513178

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    References listed on IDEAS

    1. 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.
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