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Tourism Policy, a Big Push to Employment: Evidence from a Multiple Synthetic Control Approach

Author

Listed:
  • Castillo, Victoria
  • Figal Garone, Lucas
  • Maffioli, Alessandro
  • Salazar, Lina

Abstract

This paper investigates the impact of tourism policy on employment, using the Tourism Development Policy (TDP) implemented in the Argentinean province of Salta during the years of 2003 to 2010 as a case study. Following the Synthetic Control Method for comparative case studies, we use a combination of non-treated Argentinean provinces to construct a synthetic control province which resembles relevant characteristics of Salta before the TDP implementation. Given the dual focus of the evaluated policy -one specific sector in one province- we also construct a synthetic control for the tourism sector using a combination of other sectors for Salta, and other sectors from other provinces. This novel approach based on multiple dimensions of the donor pool allows us to test the robustness of the estimated impact. We find that TDP implementation increased tourism employment in Salta by an average of 11 percent per year, for an overall impact of around 112 percent between 2003 and 2013. The analysis also suggests that larger impacts of the TDP occurred from the second to the seventh years after policy implementation. Results are robust across a series of placebo tests and sensitivity checks.

Suggested Citation

  • Castillo, Victoria & Figal Garone, Lucas & Maffioli, Alessandro & Salazar, Lina, 2015. "Tourism Policy, a Big Push to Employment: Evidence from a Multiple Synthetic Control Approach," IDB Publications (Working Papers) 6796, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:6796
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    Citations

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    Cited by:

    1. Casaburi, Gabriel & Crespi, Gustavo & De León, Ignacio L. & Figal Garone, Lucas & Grazzi, Matteo & Guaipatín, Carlos & Katz, Jorge & Llisterri, Juan J. & Maffioli, Alessandro & Navarro, Juan Carlos & , 2016. "La política de innovación en América Latina y el Caribe: Nuevos caminos," IDB Publications (Books), Inter-American Development Bank, number 7705.
    2. Hsu, Pao-Peng, 2017. "Examination of Taiwan's travel and tourism market cycle through a two-period Markov regime-switching model," Tourism Management, Elsevier, vol. 63(C), pages 201-208.
    3. Xiao Cheng & Yanping Pu & Ran Gu, 2020. "Effect of Shanxi pilot emission trading scheme on industrial soot and dust emissions: A synthetic control method," Energy & Environment, , vol. 31(3), pages 461-478, May.

    More about this item

    Keywords

    Tourism industry; Tourism sector; Tourism Development Policy (TDP);
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean

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