How local are labour markets? A look at the London Olympics
Alan Manning, Barbara Petrongolo 03 August 2012
Will the London Olympics provide a major boost for employment in Stratford, as promised? This column presents evidence from a study in the UK, which, if applied to the Olympics, suggests that we shouldn’t count on it – many of the jobs will go to other Londoners.
How local are labour markets? A number of important questions in labour economics hinge on the answer.
In recent years there has been a resurgence of interest in the consequences of localisation of economic activity for workers' welfare (see Moretti 2011, for a recent overview) and in policies aimed to improve labour market outcomes in disadvantaged areas (Glaeser and Gottlieb 2008).
unemployment, Olympics, jobs, local labour markets
Why bid for the Olympic Games?
Andrew K Rose 16 April 2009
Hosting “mega-events” like the Olympics or World Cup is very costly and seems to yield few tangible benefits. But this column presents evidence suggesting that hosting such events has a positive impact on national exports – trade is around 30% higher for countries that have hosted the Olympics. It suggests that bidding to host the Olympics or World Cup may signal trade liberalisation.
Economists are usually sceptical of arguments about the public provision of infrastructure for sporting events, and rightly so (Siegfried and Zimbalist 2000). Agents that endorse the construction of new sports stadia or the staging of mega-events usually do so out of naivety or self-interest. In practice, these events are expensive – when London won the right to host the 2012 games, the Olympics were estimated to cost over $5.5 billion. Staggering as this sum was in 2005, it has since almost trebled (with years yet to go)!
trade liberalisation, Olympics, World Cup