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Has Wal-Mart Buried Mom and Pop?: The Impact of Wal-Mart on Self Employment and Small Establishments in the United States

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Author Info
Russell S. Sobel (Department of Economics, West Virginia University)
Andrea M. Dean (Department of Economics and Entrepreneurship Center, West Virginia University)
Abstract

Saving traditional small ‘mom and pop’ businesses has been a justification for political and court decisions preventing Wal-Mart from opening new stores virtually everywhere across the United States. We present the first rigorous econometric investigation of how Wal-Mart actually impacts the small business sector. We examine the rate of self-employment and the number of smallemployer establishments using both time-series and cross-sectional data. Contrary to popular belief, our results suggest that the process of creative destruction unleashed by Wal-Mart has had no statistically significant long-run impact on the overall size and profitability of the small business sector in the United States.

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File URL: http://www.be.wvu.edu/div/econ//work/pdf_files/06-05.pdf
File Format: application/pdf
File Function: First version, 2006
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Publisher Info
Paper provided by Department of Economics, West Virginia University in its series Working Papers with number 06-05.

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Length: 35 pages
Date of creation: 2006
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Handle: RePEc:wvu:wpaper:06-05

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Find related papers by JEL classification:
L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
D59 - Microeconomics - - General Equilibrium and Disequilibrium - - - Other
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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  1. Hicks, Michael, 2006. "Transportation and Infrastructure, Retail Clustering, and Local Public Finance: Evidence from Wal-Mart's Expansion," MPRA Paper 52, University Library of Munich, Germany. [Downloadable!]
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