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The Impact of Wal-Mart on Income and Unemployment Differentials in Alabama

Listed author(s):
  • Keil, Stanley R.

    (Ball State U)

  • Spector, Lee C.

    (Ball State U)

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 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 a list of demographic and economic variables that affect unemployment and income, the impact of a Wal-Mart is tested by using a dummy variable and a cumulative-years variable. Wal-Mart is found to have substantially lowered the relative unemployment rates of blacks in those counties where it is present, but to have had only a limited impact on relative incomes after the influences of other social-economic variables are taken into account.

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File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/105/55
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Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

Volume (Year): 35 (2005)
Issue (Month): 3 ()
Pages: 336-355

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Handle: RePEc:rre:publsh:v:35:y:2005:i:3:p:336-55
Contact details of provider: Web page: http://www.srsa.org

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  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
  2. Caroline M. Hoxby, 2003. "The Economics of School Choice," NBER Books, National Bureau of Economic Research, Inc, number hox03-1.
  3. repec:hoo:wpaper:e-95-4 is not listed on IDEAS
  4. George M. Holmes, "undated". "Does school choice increase school quality?," Working Papers 0106, East Carolina University, Department of Economics.
  5. Hoxby, Caroline M. (ed.), 2003. "The Economics of School Choice," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226355337.
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  7. Robert J. Barro & Xavier Sala-I-Martin, 1992. "Public Finance in Models of Economic Growth," Review of Economic Studies, Oxford University Press, vol. 59(4), pages 645-661.
  8. Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
  9. Caroline Minter Hoxby, 2003. "Introduction to "The Economics of School Choice"," NBER Chapters,in: The Economics of School Choice, pages 1-22 National Bureau of Economic Research, Inc.
  10. Cecilia Elena Rouse, 1998. "Private School Vouchers and Student Achievement: An Evaluation of the Milwaukee Parental Choice Program," The Quarterly Journal of Economics, Oxford University Press, vol. 113(2), pages 553-602.
  11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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