Is Wal-Mart a Monopsony? Evidence from Local Labor Markets
AbstractThis paper measures the degree of monopsony power exerted by Wal-Mart over retail workers using a dominant-firm model and data in the 48 contiguous U.S. states for counties where the company operates, presenting for the first time a measure of the company’s anticompetitive behavior. Empirical results show that Wal-Mart’s monopsony power over workers varies significantly across the country, being higher in non-metro and rural counties, particularly in the south. For instance, Wal-Mart’s buying power index in labor markets in rural southern and central states is estimated to be 5% or higher while the impact on northeastern states’ retail wages is negligible.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51289.
Date of creation: Aug 2009
Date of revision:
Wal-Mart; monopsony power; wages; labor; retailing; Community/Rural/Urban Development; Industrial Organization; Labor and Human Capital; Research Methods/ Statistical Methods; J42; L13; L81;
Find related papers by JEL classification:
- J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
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