Discussion paper
DP20281 Tourism and Growth in the Local Labor Market
This paper shows how the local labor market (LLM) responds to changes in touristic attractiveness, leveraging a unique classification of Italian localities based on their main touristic assets and aggregate trends in foreign tourists' choices in a shift-share research design. Looking at all LLMs, we find a strong positive relationship between changes in attractiveness and changes in the local tourism-related economic activity, tourism expenditure, and tourism employment, but no effect on total employment. In high-unemployment LLMs, however, we find a sizable overall employment effect and large indirect effects generated through industries related to tourism and firms in the nontradable sector.
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