The Impact of College Athletics on Employment in the Restaurant and Accommodations Industries

In this paper, we analyze Metropolitan and Micropolitan Statistical Area (MSA)-level data in the U.S. to examine the economic impact of college athletics. Specifically, we examine the relationship between total athletics revenues (aggregated across all colleges in an MSA) and MSA-level employment in the accommodations and food services industries. Controlling for a variety of other factors that might influence hotel/restaurant employment within an MSA, we find that below $40 million (in 2005) in college athletics revenues there is no evidence that college athletics affects MSA employment in the food services and accommodations industries. However, above $40 million we find highly significant impacts on employment in the food services and accommodations industries that climb with college sports revenue generation.