Impact of the 1996 Summer Olympic Games on Employment and Wages in Georgia

Abstract

Using a standard differences‐in‐differences (DD) technique and a modified DD technique in the slopes, this paper determines that hosting the 1996 Summer Olympic Games boosted employment by 17% 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 not to be merely a “metropolitan statistical area (MSA) effect”; employment in the northern Olympic venue areas was found to increase 11% more post‐ versus pre‐Olympics than it did in other, similar southern MSAs. The evidence of an Olympic impact on wages is weak.

Sports Mega-Events and Economic Growth: A Synthetic Control Approach

“…The effects of sports mega-events on employment were subject to a certain scientific debate. According to Hotchkiss et al (2003) the 1996 Olympics in Atlanta had a significant positive effect on employment in the counties that hosted Olympic events. Feddersen & Maennig (2013a, 2013b) questioned these findings.…”

“…Feddersen & Maennig (2013a, 2013b) questioned these findings. After modifying the methodological approach employed by Hotchkiss et al (2003), they rejected the hypothesis of a long-term and persistent employment boost, observing a far more modest job increase, only in the month of the Games in Fulton County (Feddersen & Maennig, 2013a). Hotchkiss et al (2015) responded, claiming the positive employment impact persisted.…”

The Supply Constraint Problem in Economic Impact Analysis: An Arts/Sports Disparity

“…o The Hotchkiss et al (2003) empirical findings that the 1996 Atlanta Summer Olympics did have a noteworthy effect on job creation (not merely very short term), and that this effect exceeded that predicted by standard economic impact studies is either a total anomaly or a warning that careful empirical analysis of the actual experience of regions with large tourist events need not always generate "negative" findings. The subsequent findings by Skinner (2006) of significant job creation effects of blockbuster museum exhibits in Mississippi (nearly identical to what might have been projected using standard ex ante economic impact methods) is additional evidence, although such studies remain too rare in the arts case to draw any firm conclusions.…”

“…In this context, the positive employment findings of Hotchkiss et al (2003) regarding the 1996 Atlanta Summer Olympics based on sophisticated empirical techniques is important in preventing any rush to judgment that empirical analysis will inevitably invalidate the major findings of economic impact studies. Even more remarkably, their finding that such job gains were as high as 293,000 is a seemingly rare case of the ex post economic impact exceeding that predicted by an economic impact study.…”

Collective benefits in traffic during mega events via the use of information technologies

“…These popular events attract massive of participants or tourists traveling to one destination, thereby produce great opportunities also huge pressures to transportation and the environment, especially for cities with high population [17,18]. Past research has tried to estimate the impact of events to the economy and air quality of the host city [19][20][21]. In the context of traffic management during large-scale events, previous efforts focus on ensuring the travel of participants efficient and unimpeded.…”