FAIR TRADER

Through Mindful Spending, we aim to slowly harness a small portion of the world's collective purchase power to support Fair Trade companies.

Wednesday, February 01, 2006

How Wal-Mart Affects Local Jobs and Wages

New working paper, from the Public Policy Institute of California:

The authors find that a eight years Wal-Mart presence reduces local employment by 2% to 4%. There is also evidence that workers’ payroll in the retail sector declines, and that the earnings of businesses fall. Looking at the overall impact of Wal-Mart on the local economy, there is evidence of a slight increase in employment and of a decrease in retail prices. At the same time total payrolls - per worker and per person - decline by about 2% and 5%, respectively. These results imply that residents of a local labor market earn less after the opening of Wal-Mart stores, but that their purchasing power increases.

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