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

Author

Listed:
  • 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.

Suggested Citation

  • Stanley R. Keil & Lee C. Spector, 2005. "The Impact of Wal-Mart on Employment Andwage Differentials in Alabama," Working Papers 200508, Ball State University, Department of Economics, revised Dec 2005.
    • Handle: RePEc:bsu:wpaper:200508
    as

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    File URL: http://econfac.bsu.edu/research/workingpapers/bsuecwp200508keil.pdf
    File Function: First version, 2005
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    References listed on IDEAS

    as
    1. Kahn, Lawrence M, 1991. "Customer Discrimination and Affirmative Action," Economic Inquiry, Western Economic Association International, vol. 29(3), pages 555-571, July.
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    4. 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.
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    6. 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.
    7. 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.
    8. Gordon H. Hanson & Ann Harrison, 1999. "Trade Liberalization and Wage Inequality in Mexico," ILR Review, Cornell University, ILR School, vol. 52(2), pages 271-288, January.
    9. repec:rus:hseeco:9982 is not listed on IDEAS
    10. John S. Heywood, 1987. "Wage Discrimination and Market Structure," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 9(4), pages 617-628, July.
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    Cited by:

    1. Peralta, Denis & Kim, Man-Keun, 2016. "Big-Box Retailers and Personal Income Growth in the U.S," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235216, Agricultural and Applied Economics Association.

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