Is Tourism Good for Locals? Evidence from Barcelona
Wednesday, December 2, 8:00PM (New Delhi)
Speaker: Dr. Rocio Madera
Assistant Professor (Economics)
Southern Methodist University
Is tourism good for locals? We embed a Ricardo-Viner framework into a rich urban geography and show that the welfare impact of shocks depends only on (1) the spatial patterns of consumption and income; and (2) the price and wage effects of the shock throughout the city. We use spatially disaggregated consumption and income data to estimate the price and wage effects of Barcelona’s tourist boom. We identify these effects using an identification strategy based on monthly variation in the aggregate composition of tourists’ origin. We find that, on average, local workers suffer slightly from tourism, but these average effects mask substantial heterogeneity across space, ranging from a -19 to a +4 percent welfare change between low and high tourist seasons. The inner-city residents bear the largest price changes but enjoy the largest income gains, whereas peripheric neighborhoods suffer lower but sizable price changes with none to moderate income benefits.
About the speaker:
Rocio Madera is an Assistant Professor in Economics at Southern Methodist University, in Dallas, Texas. She received her Ph.D. in Economics from the University of Minnesota. Prior to that, she studied at CEMFI and Universidad Carlos III de Madrid. Dr. Rocio Madera’s research interests lie at the intersection of Macroeconomics, Household Finance, and Labor Economics. More specifically, she combines quantitative models of household choice with micro-data to measure the exposure of households to unexpected income changes, generally as a result of unemployment or wage cuts, by looking at decisions on both durable and non-durable consumption. Her agenda also studies the ability of government policy to insure against earnings drops that happen during recessions; self-employment incentives; and the implications of employment protection legislation on workers’ careers.
Moderator: Suganya Balakumar, Lecturer, JGBS