Cruising Through School: General Equilibrium Effects of Cruise Ship Arrivals on Employment and Education

Abstract

Cruise tourism is the fastest-growing branch of the tourism sector, and many have turned to it as a development strategy despite little systematic evidence of its equilibrium effects. I match 10.6 million automatic identification system (AIS) locations from 517 cruise ships arriving in 265 port destinations to 355,463 Demographic and Health Survey (DHS) women’s surveys in 23 countries to estimate cruise tourism’s relationship with women’s labor market participation and educational attainment. Using fixed effects to identify changes in tourism over time, I estimate that doubling cruise ship arrivals is associated with a 4.9-percentage point increase in labor participation and one-quarter more years of education. These results would be consistent with port cities offering more job opportunities for older women and increased opportunity and available income for education, possibly in anticipation of improved employment prospects. JEL Classifications : D50, I00, J21, O12, Z32