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Job Creation or Destruction? Labor-Market Effects of Wal-Mart Expansion (2002)
| Citations: | 47 - 6 self |
BibTeX
@MISC{Basker02jobcreation,
author = {Emek Basker},
title = {Job Creation or Destruction? Labor-Market Effects of Wal-Mart Expansion},
year = {2002}
}
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Abstract
The phenomenal expansion of Wal-Mart provides a clean case for studying the labor-market effects of increased efficiency. I estimate the effect of Wal-Mart entry on retail employment at the county level. Using an instrumental-variables approach to correct for both measurement error in entry dates and possible endogeneity of the timing of entry, I find that Wal-Mart entry increases retail employment by 100 jobs in the year of entry. Half of this gain disappears over the next five years, leaving a statistically significant net gain of 50 jobs at the five-year horizon. The decline in retail employment in the years immediately following entry is associated with the closing of both small and large retail establishments. At the same time, retail employment in neighboring counties declines by approximately 30 jobs, and wholesale employment in the entered county declines by a similar number.
Keyphrases
labor-market effect retail employment job creation wal-mart expansion phenomenal expansion wholesale employment entered county decline clean case county level instrumental-variables approach entry date significant net gain county decline increased efficiency possible endogeneity measurement error wal-mart entry increase retail employment similar number large retail establishment wal-mart entry five-year horizon
