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The Impact of College Athletics on Employment in the Restaurant and Accommodations Industries

  • Bernard F. Lentz


    (Drexel University)

  • David N. Laband


    (Auburn University)

In this paper, we analyze Metropolitan and Micropolitan Statistical Area (MSA)-level data in the U.S. to examine the economic impact of college athletics. Specifically, we examine the relationship between total athletics revenues (aggregated across all colleges in an MSA) and MSA-level employment in the accommodations and food services industries. Controlling for a variety of other factors that might influence hotel/restaurant employment within an MSA, we find that below $40 million (in 2005) in college athletics revenues there is no evidence that college athletics affects MSA employment in the food services and accommodations industries. However, above $40 million we find highly significant impacts on employment in the food services and accommodations industries that climb with college sports revenue generation.

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Paper provided by International Association of Sports Economists & North American Association of Sports Economists in its series Working Papers with number 0803.

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Length: 14 pages
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:spe:wpaper:0803
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  1. Robert Baade & Robert Baumann & Victor Matheson, 2011. "Big Men on Campus: Estimating the Economic Impact of College Sports on Local Economies," Regional Studies, Taylor & Francis Journals, vol. 45(3), pages 371-380.
  2. John Siegfried & Andrew Zimbalist, 2002. "A Note on the Local Economic Impact of Sports Expenditures," Journal of Sports Economics, , vol. 3(4), pages 361-366, November.
  3. McCormick, Robert E & Tensley, Maurice, 1987. "Athletics versus Academics? Evidence from SAT Scores," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 1103-16, October.
  4. Franklin Mixon & Rand Ressler, 1995. "An empirical note on the impact of college athletics on tuition revenues," Applied Economics Letters, Taylor & Francis Journals, vol. 2(10), pages 383-387.
  5. Robert Baade & Robert Baumann & Victor Matheson, 2007. "Down, Set, Hike: The Economic Impact of College Football Games on Local Economies," Working Papers 0702, College of the Holy Cross, Department of Economics.
  6. Coates, Dennis & Humphreys, Brad R., 2003. "The effect of professional sports on earnings and employment in the services and retail sectors in US cities," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 175-198, March.
  7. Siegfried, John J. & Sanderson, Allen R. & McHenry, Peter, 2007. "The economic impact of colleges and universities," Economics of Education Review, Elsevier, vol. 26(5), pages 546-558, October.
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