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Abstract:
With the aim of conducting economic research on relevant policy-related topics, this dissertation contains empirical research and analysis of three contemporary policy issues. In particular, the studies exam the effect of smoking bans on bars and restaurants, how economic restructuring affected labor market match efficiency, and how casino introduction effects local communities. Each study has been broken up into its own chapter and is summarized below. Chapter I. Many communities and several states prohibit smoking in bars and/or restaurants. Using data on employment from across the US, this study finds that counties where smoking is banned experience reductions in bar employment compared with counties that allow smoking. The relative effect on restaurant employment is neutral or mildly positive, as is the impact on number of establishments. The positive effects on restaurants are only observed in warmer areas, suggesting that the increased likelihood of outdoor seating might influence the policy's effect. Finally, smoking bans have a larger detrimental impact on bars in geographic areas with a high prevalence of smokers. The positive effect on restaurant employment is concentrated in areas with fewer smokers. Chapter II. The latest U.S. business cycle has featured both a relatively stagnant labor market and substantial structural change, leading some to ponder the 'sectoral shift hypothesis,' whereby restructuring purportedly creates labor market inefficiencies. Previous studies of the hypothesis have analyzed aggregate time series, but new data permit a direct comparison between changes in sectors' matching efficiency and employment. This paper develops an estimation method, documents intersectoral heterogeneity in matching efficiency, and quantifies substantial increases in inefficiency during this period. However, contrary to the hypothesis, there is little relationship between the extent of sectors' structural change and their reductions in matching efficiency. Chapter III. There has been a dramatic increase and spread of 'Las Vegas' style casinos in the United States over the last 25 years. Using data on employment and wages from across the US, I find that counties where casinos open, in general, experience an increase in employment compared with counties without casinos. The relative effect on industries related to casinos is also mildly positive, which suggests that casinos provide a positive spillover into the surrounding community. Intertemporal estimation suggests that the casino effect grows over time. Estimates on how these effects vary across different population densities show that low-density communities benefit much more than more densely populated areas. Finally, additional estimation shows little impact on employment levels in neighboring counties, although there are some small effects in certain sectors.
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