The impact of the FIFA World Cup 2010 on unemployment in
South Africa
Michiel Antoine Oosterbaan
Student Number: 3282740
Email: michieloosterbaan@gmail.com
Johannes Vijghstraat 52, 6524 BV Nijmegen, The Netherlands
Master Thesis in International Economics and Business, Globalization and Development
Utrecht University School of Economics
Utrecht, The Netherlands, June 26, 2013
Supervisors: Dr. Marc Schramm and Dr. Julia Swart
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.
Keywords: Unemployment, Sport Economics, Infrastructure, Regional Economics
JEL classification: E24, L83, R53, R58
Acknowledgements: I want to thank Elton Roupa and David Wilson from IHS Global Insight
South Africa, who helped me to attain my data after a long quest. Furthermore, I want to
thank Marc Schramm for pointing me in the right direction.