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New Casinos and Local Labor Markets: Evidence from Canada

The 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.

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Paper provided by University of Alberta, Department of Economics in its series Working Papers with number 2012-16.

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Length: 42 pages
Date of creation: 01 Jul 2012
Date of revision: 01 Nov 2012
Handle: RePEc:ris:albaec:2012_016
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  1. 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.
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  11. Marchand, Joseph, 2010. "Local Labor Market Impacts of Energy Boom-Bust-Boom in Western Canada," Working Papers 2010-17, University of Alberta, Department of Economics, revised 01 Mar 2011.
  12. 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.
  13. Douglas M. Walker, 2008. "Do Casinos Really Cause Crime?," Econ Journal Watch, Econ Journal Watch, vol. 5(1), pages 4-20, January.
  14. Earl L. Grinols & David B. Mustard, 2005. "Casinos, Crime, and Community Costs," Law and Economics 0501001, EconWPA.
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  18. 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.
  19. 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.
  20. Enrico Moretti, 2010. "Local Multipliers," American Economic Review, American Economic Association, vol. 100(2), pages 373-77, May.
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  24. 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.
  25. Thomas A. Garrett, 2004. "Casino gaming and local employment trends," Review, Federal Reserve Bank of St. Louis, issue Jan, pages 9-22.
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