Sectoral labour market effects of the 2006 FIFA World Cup

Using the case of the 2006 FIFA World Cup, this study is the first to test the employment effects of a mega-sporting event on the basis of data that combines both regional and sectoral data. It is also the first study of sporting events to use a semi-parametric test method. Earlier studies on the World Cup could hardly identify any employment effects. In contrast, we find a small but significant positive employment effect on the hospitality sector.

► We analyse the regional economic impact of the 2006 FIFA World Cup in Germany.
► The analysis is based on combined regionally and sectorally disaggregated data.
► A propensity score matched difference-in-difference approach is employed.
► We find no general economic impact of the 2006 World Cup.
► Only the hospitality sector shows a significantly positive short-term effect.