The Impact Of Wal Mart On The Labor Market

1863 Words8 Pages

A meta-analysis of the impact of Wal-Mart on the labor market

A county wise analysis

Nachiket Thakkar


This paper is a meta-analysis of five different papers on the effect of Wal-Mart stores in urban and rural counties of USA. It also tries to find some valuable information about the wage and employment level in those counties and also in the adjacent and non-adjacent counties. Also, the paper discusses about the increase and decrease in the number of small retail stores in the counties where Wal-Mart is having its discount or super store.

1) Introduction
2) Impact of Walmart on Small Businesses
3) Impact of Walmart on local
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This eventually forces the local small retailers to go out of business or to move their business where there is no competition from big box retail stores such as Walmart.
The employees of the small retail stores, who got unemployed because of the closing of the stores, will be able to find jobs at the newly opened Walmart. But, the data does suggest that the employment do increase in the first year of the opening of Walmart but it starts declining in the subsequent years. Also, the retail space that will be left by the outgoing stores will now be available to other business and industries in which Walmart doesn’t compete directly such as automobile dealerships, restaurant business, etc.
Also, the employees that will be hired by the newly opened Walmart will be working on an average of 28 hours per week. So, they will be working part-time job where as previously they were able to work full time in small retail stores. Also, there is a lot of criticism that Walmart doesn’t pay good wages to its employees and according to some research it comes out to be between $7-8 per hour which is in range of other competing big box retail stores like K-mart, Target, etc.
There is also criticism that entry of Walmart in a particular community increases the poverty rate as well. Because, of the closing of the small retail businesses, the unemployed workers will be relying on the government to provide them with the necessary monetary support
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