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Tourism and Growth in the Local Labor Market

Author

Listed:
  • Conti, Laura
  • Francesconi, Marco
  • Papini, Giulio
  • Serafinelli, Michel

Abstract

This paper shows how the local labor market (LLM) responds to changes in touristic attractiveness, leveraging a unique classification of Italian localities based on their main touristic assets and aggregate trends in foreign tourists' choices in a shift-share research design. Looking at all LLMs, we find a strong positive relationship between changes in attractiveness and changes in the local tourism-related economic activity, tourism expenditure, and tourism employment, but no effect on total employment. In high-unemployment LLMs, however, we find a sizable overall employment effect and large indirect effects generated through industries related to tourism and firms in the nontradable sector.

Suggested Citation

  • Conti, Laura & Francesconi, Marco & Papini, Giulio & Serafinelli, Michel, 2025. "Tourism and Growth in the Local Labor Market," CEPR Discussion Papers 20281, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:20281
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    File URL: https://cepr.org/publications/DP20281
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    Keywords

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Z30 - Other Special Topics - - Tourism Economics - - - General

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