Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320527 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17933
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper documents how the local labor market (LLM) responds to a change in touristic attractiveness. Leveraging largely underutilized data from several sources, we exploit 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, with a positive impact on tourism expenditure and tourism employment, but no effect on total employment. In high-unemployment LLMs, however, we find evidence of sizable total employment effects and large indirect effects generated through industries related to tourism and firms in the nontradable sector. We observe no effects on wage growth. We discuss our results in the context of the current policy debate on the role of tourism in the development of the local economy.
Subjects: 
local spillovers
unemployment
job growth
tourism
heterogeneity
JEL: 
J21
R11
R12
R23
Z30
Document Type: 
Working Paper

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