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Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion

Basker, Emek·2005·Review of Economics and Statistics

Abstract

This paper estimates the effect of Wal-Mart expansion on retail employment at the county level. Using an instrumental variables approach to correct for both measurement error in entry dates and 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 as other retail establishments exit and contract, leaving a long-run statistically significant net gain of 50 jobs. Wholesale employment declines by approximately 20 jobs due to Wal-Mart's vertical integration. No spillover effect is detected in retail sectors in which Wal-Mart does not compete directly, suggesting Wal-Mart does not create agglomeration economies in retail trade at the county level.

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Metadata

Authors
Basker, E.
Venue
Review of Economics and Statistics
Published
2005-02
Volume
87
Issue
1
Pages
174-183
ISSN
  • 0034-6535 (ISSN-L)
  • 1530-9142
OpenAlex
W2275845557
Cited by
338
References
0
FWCI
75.03
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion. https://app.cochat.ai/papers/10.1162/0034653053327568
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Basker, E. (2005). Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion. Review of Economics and Statistics. https://doi.org/10.1162/0034653053327568

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