Can tourism activity stabilize cyclical employment?

Abstract

Being the most interesting component of total employment, directly related to the business cycle, cyclical employment is a frequent topic of macroeconomic analysis. It is generally acknowledged and empirically proven that cyclical employment related to many economic activities, such as trade or construction, is highly synchronized with the fluctuation of GDP. The aim of this paper is to explore whether the same conclusion is valid in the case of tourism. Our results show that cyclical employment related to tourism activity acts slightly different and has a potential to stabilize the overall cyclical employment during the different phases of business cycle. It contributes to a better understanding of the role of tourism activity on labor market.

Keywords

• Business cycle
• Cyclical employment
• Tourism