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ABSTRACT:Using a standard differences-in-differences (DD) technique and a modified DD in the slopes this paper determines that hosting the 1996 Summer Olympic Games boosted employment by 17 percent in the counties of Georgia affiliated with and close to Olympic activity, relative to employment increases in other counties in Georgia (the rate of growth increased 0.002 percentage points per quarter). Estimation of a random-growth model confirms a positive impact of the Olympics on employment. In addition, the employment impact is shown to not merely be a "MSA effect;" employment in the northern Olympic venue areas was found to increase 11 percent more post-versus pre-Olympics, compared with other similar Southern MSAs. The evidence of an Olympic impact on wages is weak.

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Making use of performance data for baseball players, this article provides empirical evidence in support of Lazear's (1998) theoretical predictions that (1) risky workers will earn a premium for their upside potential, (2) this risk premium will be higher the longer a worker's work life, and (3) firms must enjoy some comparative advantage in the labor market to be willing to pay a premium to risky workers. The validity of Lazear's predictions carries implications for wage differentials between young and old workers and between men and women.