Wage Premium and Rent Sharing of a Dominant Sector: The Gaming of Macao estudo

 jul 26


Chi-shing Chan1 | Jie He2 | Fung Kwan3 | Ziang Qiu4 | Yang Zhang5

1

Centre for Macau Studies, University of Macau, Macao, China | 2Department of Economics, University of Macau, Macao, China | 3Department of

Economics, Asia-Pacific Academy of Economics & Management, Centre for Macau Studies, University of Macau, Macao, China | 4Faculty of Business

Administration, University of Macau, Macao, China | 5Department of Finance and Business Economics, University of Macau, Macao, China

Correspondence: Fung Kwan (fungkwan@umac.mo)

Received: 30 January 2026 | Revised: 13 May 2026 | Accepted: 14 June 2026

Keywords: gaming sector | inter-industry wage differential | Macao | rent sharing | wage premium

ABSTRACT


We examined the hidden wage differences between gaming, a dominant sector of the small open economy, Macao, and non-

gaming. The findings reveal significant and persistent wage gaps between the gaming industry and other sectors of the economy,


even after accounting for labour-market differences. Croupiers earned the highest wage premium among occupations. This is

consistent with rent sharing and labour supply restrictions. Casino concessionaires are well-capitalized and licensed, possessing

strong market power that generates substantial profits. They share these profits with their employees through higher salaries, a

practice endorsed by both the local government and the public. Additionally, croupier positions are limited to residents, allowing

them to enjoy the largest wage premia among professions. The wage premia for gaming workers may have decreased as a result

of casino businesses' operating surpluses declining sharply during COVID-19.

JEL Classification: J31, J71

Comments

Post a Comment

Popular posts from this blog

2022-2024 reforms corrected Macau’s casino industry imbalance

Image
 ab25 The new regulatory framework overhaul that was implemented through reforms in 2022 and 2024 led to “major corrections” in the  Macau  casino industry rather than routine updates, aimed at fixing what had become a dangerously unbalanced system after two decades of breakneck expansion, gaming law expert Jorge Godinho argues in a recent study. “There were too many gaming promoters and VIP rooms, too much credit for gaming, and too much money moving out of China,” Godinho writes in his  study ,  The Macau SAR Regulation of Casino Gaming: Structural Features After the Reforms of 2022–2024 . Jorge Godinho, Gaming Law Expert “Numerous casinos were built, but not that many non-gaming services were developed.” The reforms come after years of unsustainable growth, followed by sharp decline during the COVID-19 pandemic. The gaming industry peaked in 2013/14 but entered what Godinho describes as “a bumpy ride that became a freefall.” Macau’s reliance on high-rolling V...
Read more

new Tiger Baccarat side bets

jul24 A fresh side bet option for baccarat play introduced to the Macau market –  known as ‘Small 6/Big 6’   – is now prevalent in all key properties promoted by the city’s six casino operators across Cotai and downtown Macau, based on GGRAsia’s recent site checks. Small 6/Big 6 – a variant of  the ‘Lucky Six’   found in Macau casinos – pays 22 to 1, if the winning ‘banker’ hand with a face value of six is composed of two cards. The side bet pays 50 to 1 for a winning ‘banker’ hand with a face value of six, composed of three cards. Macau casino operators Galaxy Entertainment Group Ltd and Sands China Ltd had been the earliest adopters of this fresh side bet option. Both companies had already launched the offer at their respective properties  by early May , coinciding with the Labour Day holiday period. In  late May , MGM China Holdings Ltd and Wynn Macau Ltd also started offering the Small 6/Big 6 bet option at the mass and high-limit gaming areas of t...
Read more

Gaming operators finish over 20 pct of pledged projects, study finds

 set25 Over one fifth of the investment projects pledged by casino operators have been completed, as per the Asia Pacific Association for Gambling Studies. The estimate comes in a fresh update from the group of scholars and experts on the gaming sector, which they believe generated MOP70.8 billion (US$8.84 billion) in non-gaming revenue between 2023 and 2024. The association is headed by Zeng Zhonglu, an emeritus professor at the Macao Polytechnic University. It is believed that last year alone, non-casino revenue exceeded 2019 levels by 12 per cent. When it came to contributions to public finances, 2023–2024 tax revenue from these casino operators reached MOP164 billion, accounting for 76 per cent of current revenue and capital income. On local employment, the group estimates that these gaming companies hired 77,951 locals between 2023 and 2024 — or approximately 27.3 per cent of the city’s entire workforce. Other positive contributions outlined by the group included these compani...
Read more