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Job Creation or Destruction? Labor-Market Effects of Wal-Mart Expansion Author info | Abstract | Publisher info | Download info | Related research | Statistics Emek Basker (University of Missouri)
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This paper estimates the effect of Wal-Mart expansion on retail employment at the county level. Using an instrumental-variables approach to correct for both measurement error in entry dates and endogeneity of the timing of entry, I find that Wal-Mart entry increases retail employment by 100 jobs in the year of entry. Half of this gain disappears over the next five years as other retail establishments exit and contract, leaving a long-run statistically significant net gain of 50 jobs. Wholesale employment declines by approximately 20 jobs due to Wal-Mart's vertical integration. No spillover effect is detected in retail sectors in which Wal-Mart does not compete directly, suggesting Wal-Mart does not create agglomeration economies in retail trade at the county level.
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Paper provided by EconWPA in its series Labor and Demography with number
0303002.
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Length: 46 pages
Date of creation: 13 Mar 2003Date of revision:
11 Mar 2005Handle: RePEc:wpa:wuwpla:0303002Note: Type of Document - pdf; prepared on IBM PC - PC-TEX; to print on PostScript; pages: 46 ; figures: included. University of Missouri Working Paper 02-15Contact details of provider: Web page: http://129.3.20.41
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Keywords: Wal-Mart retail employment Other versions of this item:
Find related papers by JEL classification: O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
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