nep-tur New Economics Papers
on Tourism Economics
Issue of 2008‒10‒21
three papers chosen by
Antonello Scorcu
University of Bologna

  1. Working career progress in the tourism industry: Temp-to-perm transitions in Spain By Miguel A. Malo; Fernando Munoz-Bullon
  2. City Beautiful By Gerald A. Carlino; Albert Saiz
  3. The Economic Impact of Olympic Games: Evidence from Stock Markets By Dick, Christian D.; Wang, Qingwei

  1. By: Miguel A. Malo; Fernando Munoz-Bullon
    Abstract: In this article, we analyze the dynamics of temporary workers’ transitions into permanent contracts for workers related to the tourism industry. For this purpose, we use an administrative retrospective dataset from Spanish Social security records. Results show that while individuals with a weaker attachment to the tourism industry achieve open-ended contracts sooner than in most other industries, on the contrary, it takes more time to those with a greater attachment to the tourism industry to exit from the temporary status. In addition, we find that for workers substantially engaged in the tourism industry, it takes more time to reach an open-ended contract when they have held between six and ten contracts in the past (as opposed to holding only one previous contract). On the contrary, for individuals with a weaker attachment to the tourism industry, holding between two and ten previous contracts implies a quicker exit from temporality.
    Keywords: Temporary employment, Temporality trap, Spanish tourism industry
    JEL: L83 J62 J64 C41
    Date: 2008–10
  2. By: Gerald A. Carlino; Albert Saiz
    Abstract: The City Beautiful movement, which in the early 20th century advocated city beautification as a way to improve the living conditions and civic virtues of the urban dweller, had languished by the Great Depression. Today, new urban economic theorists and policymakers are coming to see the provision of consumer leisure amenities as a way to attract population, especially the highly skilled and their employers. However, past studies have provided only indirect evidence of the importance of leisure amenities for urban development. In this paper we propose and validate the number of leisure trips to metropolitan statistical areas (MSAs) as a measure of consumers' revealed preferences for local leisure-oriented amenities. Population and employment growth in the 1990s was about 2 percent higher in an MSA with twice as many leisure visits: the third most important predictor of recent population growth in standardized terms. Moreover, this variable does a good job of forecasting out-of-sample growth for the period 2000-2006. “Beautiful cities” disproportionally attracted highly educated individuals and experienced faster housing price appreciation, especially in supply-inelastic markets. Investment by local government in new public recreational areas within an MSA was positively associated with higher subsequent city attractiveness. In contrast to the generally declining trends in the American central city, neighborhoods that were close to “central recreational districts” have experienced economic growth, albeit at the cost of minority displacement.
    Keywords: Cities and towns
    Date: 2008
  3. By: Dick, Christian D.; Wang, Qingwei
    Abstract: By means of an event study of stock market reactions to the announcement of the Olympic Games host cities, we find a significant and positive announcement effect of hosting the Summer Games, with a cumulative abnormal return of about 2% within a few days. We do not find any significant results for the Winter Games. Neither do we detect a significant impact when bidders lose the competition. Our results differ from those of a similar study by Mirman and Sharma (2008), who find that the Winter Games are subject to a significantly negative announcement impact, while the Summer Games are not. Our results, however, rely on a larger sample of 15 Olympic events and are obtained by assessing the abnormal returns after the announcement against a “business–as–usual" situation (instead of testing the difference between winner group and loser group). Our findings are in line with economic intuition, since the Summer Games represent a larger event and are thus more likely to have a significant impact. We also find that among the winners, small economies tend to have greater cumulative abnormal returns than their large peers.
    Keywords: Olympic Games, economic impact, event study, stock markets
    JEL: G14 L83
    Date: 2008

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