Tourism, labour migration, and wage inequality

An empirical analysis of Macau's casino-driven economy

Datos Bibliográficos

ID21699382
AutoresLiye Xu (0009-0001-9700-474X, Zhuhai College of Science and Technology), Maoshan Tian (0000-0002-6267-6538, Macau University of Science and Technology), Hongru Zhang (0009-0004-8377-4155, Macau University of Science and Technology, autor de correspondencia)
Año2026
Volumen29
Número12
Páginas2503-2524
Fecha de publicación2026-06-18
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaCurrent Issues in Tourism (JOURNAL)
Identificadores de la revistaISSN: 1368-3500 • E-ISSN: 1747-7603
EditorialInforma UK Limited (PUBLISHER • GB)
DOI10.1080/13683500.2025.2514829
OpenAlexW4411034303
IdiomaEN
Citas recibidas2
Referencias citadas77

This paper examines wage inequality in Macau, focusing on the effects of shocks from inbound casino tourism and non-resident workers (NRWs) inflows since the liberalisation of its gaming sector. Using a structural vector autoregressive (SVAR) model, we analyse how tourism indicators, NRWs, inflation, and wage inequality interact. Findings show that increases in casino tourism boost demand for foreign labour, particularly in gaming and tourism, improving wage inequality for lower-income workers. Shocks to NRWs also reduce wage inequality, with stronger effects in the hospitality sector, enhancing service quality and easing inflation. Decomposition of mean and median wages reveals that middle-income earners benefit more, suggesting more inclusive wage growth. Forecast error variance decomposition (FEVD) highlights tourism shocks as the primary driver of long-term wage inequality changes. These insights offer valuable guidance for policymakers addressing wage inequality in tourism-driven economies like Macau

Economic inequality · Economics · Economy · Geography · Inequality · Labour economics · Minimum wage · Tourism · Wage · Wage Inequality · Cuban History and Society · Migration and Labor Dynamics · Migration, Ethnicity, and Economy

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