The impact of the FIFA World Cup 2010 on unemployment in South Africa

Abstract

Using a difference-in-difference technique this study examines the unemployment effects of the FIFA World Cup in the host municipalities of South Africa. It is the first multivariate analysis of the unemployment effects of a FIFA World Cup in a developing country. The results demonstrate that hosting the FIFA World Cup increased unemployment by 6.6% in host municipalities relative to other municipalities. Therefore, this study enlarges the list for ex post studies that are not able to find positive significant results on mega-events.