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Is walmart the same as ten years ago? A non-parametric difference-in-differences analysis of walmart development

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  • Wang, Bingbing

Abstract

Walmart experienced tremendous growth and changes from 1962 when the first store opened. This study examines the temporal variation in Walmart's effects on neighboring house prices and local labor markets employing a new non-parametric difference-in-differences method to address concerns that areas immediately around a Walmart and comparison areas nearby may have different trends prior to a store opening. The results show that the prices of homes located within 0.5 miles of Walmart increased at a maximum rate of 2.97% due to store openings from 1990 to 2000. Conversely, store openings in 2002–2007 resulted in approximately zero effects on neighboring house prices, and stores that opened in 2008–2013 experienced house price declines of roughly 3% within 0.5 miles of the store. Explorations of the underlying mechanisms suggest that Walmart openings had led to deteriorating shopping convenience but increasing negative spillovers from the early to the late 2000s. Government subsidies and zoning policies targeting these issues might help mitigate the negative spillovers from Walmart.

Suggested Citation

  • Wang, Bingbing, 2023. "Is walmart the same as ten years ago? A non-parametric difference-in-differences analysis of walmart development," Regional Science and Urban Economics, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:regeco:v:99:y:2023:i:c:s0166046222001016
    DOI: 10.1016/j.regsciurbeco.2022.103863
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    References listed on IDEAS

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    1. Neumark, David & Zhang, Junfu & Ciccarella, Stephen, 2008. "The effects of Wal-Mart on local labor markets," Journal of Urban Economics, Elsevier, vol. 63(2), pages 405-430, March.
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    4. Emek Basker, 2005. "Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 174-183, February.
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    6. Pope, Devin G. & Pope, Jaren C., 2015. "When Walmart comes to town: Always low housing prices? Always?," Journal of Urban Economics, Elsevier, vol. 87(C), pages 1-13.
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