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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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File URL: http://www.ualberta.ca/~econwps/2012/wp2012-16.pdf
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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
Contact details of provider: Postal: 8-14 HM Tory, Edmonton, Alberta, T6G 2H4
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Web page: http://www.economics.ualberta.ca/

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  1. Cotti, Chad D. & Walker, Douglas M., 2010. "The impact of casinos on fatal alcohol-related traffic accidents in the United States," Journal of Health Economics, Elsevier, vol. 29(6), pages 788-796, December.
  2. 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.
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  4. Earl L. Grinols & David B. Mustard, 2008. "Connecting Casinos and Crime: More Corrections of Walker," Econ Journal Watch, Econ Journal Watch, vol. 5(2), pages 156-162, May.
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  8. Earl L. Grinols & David B. Mustard, 2008. "Correctly Critiquing Casino-Crime Causality," Econ Journal Watch, Econ Journal Watch, vol. 5(1), pages 21-31, January.
  9. 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.
  10. John M. Barron & Michael E. Staten & Stephanie M. Wilshusen, 2002. "The Impact Of Casino Gambling On Personal Bankruptcy Filing Rates," Contemporary Economic Policy, Western Economic Association International, vol. 20(4), pages 440-455, October.
  11. 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.
  12. Wooldridge, Jeffrey M. & Imbens, Guido, 2009. "Recent Developments in the Econometrics of Program Evaluation," Scholarly Articles 3043416, Harvard University Department of Economics.
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  16. Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working papers 98-7, Massachusetts Institute of Technology (MIT), Department of Economics.
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  18. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
  19. 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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  21. William R. Eadington, 1999. "The Economics of Casino Gambling," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 173-192, Summer.
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  25. Douglas M. Walker, 2008. "The Diluted Economics of Casinos and Crime: A Rejoinder to Grinols and Mustard’s Reply," Econ Journal Watch, Econ Journal Watch, vol. 5(2), pages 148-155, May.
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