The Effects of Wal-Mart on Local Labor Markets

In response to a policy debate, this report finds that the opening of a Walmart store in a county leads to a reduction in county-level retail employment by approximately 150 workers, implying that each Walmart worker replaces around 1.4 retail workers, resulting in a 2.7 percent decrease in average retail employment. However, it is noted that these effects should be understood relative to a counterfactual scenario, and other factors such as lower prices and potential shifts in labor markets also need to be considered when assessing the overall impact of Walmart on local economies.