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New Casinos and Local Labor Markets: Evidence from Canada

Author

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  • Humphreys, Brad

    () (University of Alberta, Department of Economics)

  • Marchand, Joseph

    () (University of Alberta, Department of Economics)

Abstract

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.

Suggested Citation

  • Humphreys, Brad & Marchand, Joseph, 2012. "New Casinos and Local Labor Markets: Evidence from Canada," Working Papers 2012-16, University of Alberta, Department of Economics, revised Jun 2013.
  • Handle: RePEc:ris:albaec:2012_016
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    File URL: https://sites.ualberta.ca/~econwps/2012/wp2012-16.pdf
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    References listed on IDEAS

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    Cited by:

    1. Amir Borges Ferreira Neto & Collin D. Hodges & Hyunwoong Pyun, 2016. "Voting Dynamics and the Birth of State-owned Casinos in Kansas," Economics Bulletin, AccessEcon, vol. 36(1), pages 329-336.
    2. Charlotte Senftleben-König, 2014. "Public Sector Employment and Local Multipliers," Working Papers 2014010, Berlin Doctoral Program in Economics and Management Science (BDPEMS).
    3. repec:bla:growch:v:48:y:2017:i:3:p:409-434 is not listed on IDEAS
    4. Melisa Bubonya & David P. Byrne, 2015. "Supplying Slot Machines to the Poor," Melbourne Institute Working Paper Series wp2015n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. Huang, Haifang & Humphreys, Brad & Zhou, Li, 2014. "Do Urban Casinos Affect Nearby Neighborhoods? Evidence from Canada," Working Papers 2014-2, University of Alberta, Department of Economics, revised 01 Mar 2014.
    6. Brad R. Humphreys & Brian P. Soebbing, 2014. "Access to Legal Gambling and the Incidence of Crime: Evidence from Alberta," Growth and Change, Wiley Blackwell, vol. 45(1), pages 98-120, March.

    More about this item

    Keywords

    casinos; gambling; job multipliers; local economic development; local labor markets;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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