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Individual labor market effects of local public expenditures on sports

Author

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  • Pawlowski, Tim
  • Steckenleiter, Carina
  • Wallrafen, Tim
  • Lechner, Michael
Abstract
By merging administrative data on public finances of all municipalities in Germany with individual data from the German Socio-Economic Panel, we explore whether local public expenditures on sports facilities influences individual labor market outcomes. Our identification strategy follows a selection-on-observables approach and exploits the panel structure of the data covering 12 years between 2001 and 2012. The results of our matching estimations suggest that both women and men living in municipalities with high expenditure levels benefit, exhibiting approximately 7 percent of additional household net income on average. However, this income effect is fully captured by earning gains for men rather than women living in the household. Additional analysis suggests, that these gender differences, which can also be observed in terms of working time, hourly wage and employment status, appear plausible since women in the age cohort under consideration are less likely than men to engage in sports in general and in any of the publicly funded sports facilities in particular. Moreover, improved well-being and health are possible mechanisms that determine how the positive labor market effects for men may unfold.

Suggested Citation

  • Pawlowski, Tim & Steckenleiter, Carina & Wallrafen, Tim & Lechner, Michael, 2019. "Individual labor market effects of local public expenditures on sports," Economics Working Paper Series 1906, University of St. Gallen, School of Economics and Political Science.
    • Handle: RePEc:usg:econwp:2019:06
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    File URL: http://ux-tauri.unisg.ch/RePEc/usg/econwp/EWP-1906.pdf
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    Cited by:

    1. Steckenleiter, Carina & Lechner, Michael & Pawlowski, Tim & Schüttoff, Ute, 2019. "Do local public expenditures on sports facilities affect sports participation in Germany?," Economics Working Paper Series 1905, University of St. Gallen, School of Economics and Political Science.
    2. Carina Steckenleiter & Michael Lechner & Tim Pawlowski & Ute Schüttoff, 2023. "Do local expenditures on sports facilities affect sports participation?," Economic Inquiry, Western Economic Association International, vol. 61(4), pages 1103-1128, October.

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    More about this item

    Keywords

    Labor market effects; public expenditures; sports; health; well-being;
    All these keywords.

    JEL classification:

    • Z20 - Other Special Topics - - Sports Economics - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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