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Effects of e-commerce on local labor markets

Author

Listed:
  • Anahid Bauer

    (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - DEFI - Département Data analytics, Économie et Finances - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

  • Guerrico Sofia Fernández

    (IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics, ULB - Université libre de Bruxelles = Free University of Brussels)

Abstract

This paper studies the effect of e-commerce on local labor markets. We exploit cross-market variation in e-commerce price advantage stemming from the enactment of the Amazon Tax-state-level legislation that mandates state sales taxes collection to out-of-state online retailers. Introducing out-of-state sales taxes lowered employment and reduced wages in transportation and warehousing, industries complementary to e-commerce. Within the in-state retail sector, the decline in brick-and-mortar employment is somewhat offset by an increase in employment in warehouse clubs and supercenters. Our results are consistent with a general equilibrium model in which consumers substitute e-commerce for big-box purchases, crowding out brick-and-mortar retail.

Suggested Citation

  • Anahid Bauer & Guerrico Sofia Fernández, 2023. "Effects of e-commerce on local labor markets," Working Papers hal-05465368, HAL.
    • Handle: RePEc:hal:wpaper:hal-05465368
    Note: View the original document on HAL open archive server: https://hal.science/hal-05465368v1
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