Temporary residents and permanent jobs? Second-home tourism and job creation in the construction sector

Tourism is widely recognised as a significant source of economic growth and employment, but its effects on employment in sectors beyond the traditional tourism industry is under-researched. Our study explores this research gap by examining the relationship between second-home tourism and employment in the construction industry. Using a combination of registry data and official tax records, the study explores the labour market effects of second-home owners investing in these homes. We find evidence of a positive and significant correlation between the number of second homes and the size of the construction sector within local economies. In particular, the effect stems from second homes owned by non-locals. In addition, we find striking spatial patterns of money flowing into construction firms from outside the local economy–considerable net flows of investments from urban to rural areas, from centre to periphery. This research contributes to the understanding of how tourism affects labour markets beyond the tourism industry. It emphasises the spatial aspects of second-home tourism, particularly in relation to the construction industry. The findings have implications for policymakers, planners, and tourism stakeholders, providing valuable insights into the economic significance of second-home tourism and its impact on local labour markets.