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The Impact of Wal-Mart on Employment Andwage Differentials in Alabama

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Author Info

  • Stanley R. Keil

    ()
    (Department of Economics, Ball State University)

  • Lee C. Spector

    ()
    (Department of Economics, Ball State University)

Abstract

Using Alabama county data from 1980 and 1990 censuses and store opening dates, this paper presents an econometric study of the impact of the presence of Wal-Mart's on black-white income and unemployment differentials. It is posited that Wal-Mart changes the competitive nature of the labor market in a way that is beneficial to blacks. After establishing baseline relationships between unemployment and income with respect to demographic and economic variables, the impact of a Wal-Mart is tested by using a dummy variable and a cumulative years variable. Wal-Mart is found to have significantly lowered the relative unemployment rates of blacks in those counties where it is present, but to have had no significant impact on relative incomes after the influences of other social-economic variables are taken into account.

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Bibliographic Info

Paper provided by Ball State University, Department of Economics in its series Working Papers with number 200508.

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Length: 32 pages
Date of creation: Dec 2005
Date of revision: Dec 2005
Publication status: Published in Review of Regional Studies 35 (3): 336-355.
Handle: RePEc:bsu:wpaper:200508

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  1. John S. Heywood, 1987. "Wage Discrimination and Market Structure," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 9(4), pages 617-628, July.
  2. Holzer, Harry J, 1991. "Employment, Unemployment and Demand Shifts in Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 25-32, February.
  3. Judith K. Hellerstein & David Neumark & Kenneth R. Troske, 2002. "Market Forces and Sex Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 37(2), pages 353-380.
  4. Kahn, Lawrence M, 1991. "Customer Discrimination and Affirmative Action," Economic Inquiry, Western Economic Association International, vol. 29(3), pages 555-71, July.
  5. repec:rus:hseeco:9982 is not listed on IDEAS
  6. Nardinelli, Clark & Simon, Curtis, 1990. "Customer Racial Discrimination in the Market for Memorabilia: The Case of Baseball," The Quarterly Journal of Economics, MIT Press, vol. 105(3), pages 575-95, August.
  7. Berik, Gunseli & Van der Meulen Rodgers, Yana & Zveglich, Joseph E., 2003. "International trade and wage discrimination : evidence from East Asia," Policy Research Working Paper Series 3111, The World Bank.
  8. Gordon H. Hanson & Ann Harrison, 1999. "Trade liberalization and wage inequality in Mexico," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(2), pages 271-288, January.
  9. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
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