Inter-Industry Employment Spillovers from Tourism Inflows

29 Pages Posted: 20 Sep 2011 Last revised: 27 Aug 2012

See all articles by Vrinda Kadiyali

Vrinda Kadiyali

Cornell University - Samuel Curtis Johnson Graduate School of Management

Renata Kosova

Imperial College London

Date Written: July 1, 2012

Abstract

How much economic stimulus does tourism provide by generating jobs in various local industry sectors? Using data across 43 U.S. metropolitan statistical areas during 1987-2006, we analyze the impact of tourism inflows - proxied by the number of hotel rooms sold - on the employment in 22 non-hotel industries. We estimate a dynamic labor demand model with inter-industry spillover effects, using various estimators including GMM-based dynamic panel methods. We find statistically and economically significant effects – an additional 100 rooms sold per day during a year in a given MSA generates between 2-5 new jobs per non-hotel industry in that area. Subsample analyses across industries indicate that construction, retail, health care, professional and technical services are among the largest beneficiaries of these spillovers.

Keywords: labor demand, spillovers, tourism, industry-linkages, dynamic panel data models

JEL Classification: J23, O4, L83, C33

Suggested Citation

Kadiyali, Vrinda and Kosova, Renata, Inter-Industry Employment Spillovers from Tourism Inflows (July 1, 2012). Regional Science and Urban Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1931026 or http://dx.doi.org/10.2139/ssrn.1931026

Vrinda Kadiyali

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

Ithaca, NY 14853
United States
607-255-1985 (Phone)
607-254-4590 (Fax)

Renata Kosova (Contact Author)

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

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