(Translated by https://www.hiragana.jp/)
A Quasi-Experimental Test of Large Retail Store Impacts on Regional Labor Markets: The Case of Cabela's Retail Outlets
IDEAS home Printed from https://ideas.repec.org/a/ags/jrapmc/132412.html
   My bibliography  Save this article

A Quasi-Experimental Test of Large Retail Store Impacts on Regional Labor Markets: The Case of Cabela's Retail Outlets

Author

Listed:
  • Hicks, Michael J.

Abstract

This study applies a quasi-experimental method for performing economic impact analy-sis of a firm‟s entrance on regional labor markets. The impact studied is the entrance of a Ca-bela‟s retail outlet in seven U.S. counties from 1998 through 2003. Using a time-space dynamic model in a monthly panel data setting, this paper evaluates the impact of new firm entrance on employment, unemployment rates and labor forces in 7 control and 7 treatment counties. I include an endogeneity test, rejecting growth and labor market endogeneity in the entrance of Cabela‟s. The findings suggest that the entrance of a large-scale specialty retail store has no persistent impact on employment in the effected or surrounding counties. These findings suggest labor market constraints. More simply retail wages are not sufficient to increase labor market participation or alter economic migration patterns in the affected counties. This paper recommends that benefit cost analysis be performed when public resources are dedicated to infrastructure or tax incentive efforts.

Suggested Citation

  • Hicks, Michael J., 2007. "A Quasi-Experimental Test of Large Retail Store Impacts on Regional Labor Markets: The Case of Cabela's Retail Outlets," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-7.
    • Handle: RePEc:ags:jrapmc:132412
    DOI: 10.22004/ag.econ.132412
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/132412/files/07-2-4.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.132412?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Neumark, David & Zhang, Junfu & Ciccarella, Stephen, 2008. "The effects of Wal-Mart on local labor markets," Journal of Urban Economics, Elsevier, vol. 63(2), pages 405-430, March.
    2. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    3. Stone, Kenneth E. & Deller, Steven C. & McConnon, James C. Jr., 1992. "The New Retail Environment in Maine," Staff General Research Papers Archive 11255, Iowa State University, Department of Economics.
    4. Emek Basker, 2005. "Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 174-183, February.
    5. Michael J. Hicks & Kristy Wilburn, 2005. "The Locational Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," Urban/Regional 0511011, University Library of Munich, Germany.
    6. Isserman, Andrew M. & Merrifield, John, 1982. "The use of control groups in evaluating regional economic policy," Regional Science and Urban Economics, Elsevier, vol. 12(1), pages 43-58, February.
    7. Todd M. Gabe & David S. Kraybill, 2002. "The Effect of State Economic Development Incentives on Employment Growth of Establishments," Journal of Regional Science, Wiley Blackwell, vol. 42(4), pages 703-730.
    8. Stone, Kenneth E., 1995. "Competing With the Retail Giants," Staff General Research Papers Archive 5307, Iowa State University, Department of Economics.
    9. Barnes, Nora Ganim & Connell, Allison & Hermenegildo, Lisa & Mattson, Lucinda, 1996. "Regional differences in the economic impact of Wal-Mart," Business Horizons, Elsevier, vol. 39(4), pages 21-25.
    10. Hicks, Michael J. & Wilburn, Kristy L., 2001. "The Regional Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 305-313, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael J. Hicks, 2014. "Do Good Fences Make Good Neighbors? The Cross Border Impact of Casino Entrance," Growth and Change, Wiley Blackwell, vol. 45(1), pages 5-20, March.
    2. Juan Tomas Sayago-Gomez & Gianfranco Piras & Donald Lacombe & Randall Jackson, 2015. "Impact Evaluation of Investments in the Appalachian Region: A Reappraisal," Working Papers Working Paper 2015-06, Regional Research Institute, West Virginia University.
    3. Zhang, Chuanchuan, 2011. "大型おおがた外がい资零售商的てき进入对中国ちゅうごく地区ちく劳动力りょく市し场的影かげ响 [Impact of Entry of Large Foreign Retailers on Local Labor Markets in China]," MPRA Paper 43912, University Library of Munich, Germany, revised Apr 2012.
    4. Michael J. Hicks & Michael LaFaive, 2011. "The Influence of Targeted Economic Development Tax Incentives on County Economic Growth: Evidence From Michigan’s MEGA Credits," Economic Development Quarterly, , vol. 25(2), pages 193-205, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Hicks, 2007. "Wal-Mart’s Impact on Local Revenue and Expenditure Instruments in Ohio, 1988–2003," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(1), pages 77-95, March.
    2. Michael J. Hicks, 2006. "Transportation and infrastructure, retail clustering, and local public finance: evidence from Wal-Mart's expansion," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 100-114.
    3. Michael J. Hicks, 2005. "The Impact of Wal-Mart on Local Fiscal Health: Evidence from a Panel of Ohio Counties," Public Economics 0511016, University Library of Munich, Germany.
    4. Michael J. Hicks & Stanley R. Keil & Lee C. Spector, 2012. "Mom-and-Pops or Big Box Stores," Economic Development Quarterly, , vol. 26(4), pages 311-320, November.
    5. Michael J. Hicks, 2007. "Job Turnover and Wages in the Retail Sector: The Influence of Wal-Mart," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 22(Spring 20), pages 137-160.
    6. Michael Hicks, 2015. "Does Wal-Mart Cause an Increase in Anti-Poverty Expenditures?," Social Science Quarterly, Southwestern Social Science Association, vol. 96(4), pages 1136-1152, December.
    7. Michael J. Hicks, 2005. "Does Wal-Mart Cause an Increase in Anti-Poverty Program Expenditures?," Public Economics 0511015, University Library of Munich, Germany.
    8. Dube, Arindrajit & Lester, T. William & Eidlin, Barry, 2007. "Firm Entry and Wages: Impact of Wal-Mart Growth on Earnings Throughout the Retail Sector," Institute for Research on Labor and Employment, Working Paper Series qt22s5k4pv, Institute of Industrial Relations, UC Berkeley.
    9. repec:rre:publsh:v:39:y:2009:i:1:p:73-83 is not listed on IDEAS
    10. Neumark, David & Zhang, Junfu & Ciccarella, Stephen, 2008. "The effects of Wal-Mart on local labor markets," Journal of Urban Economics, Elsevier, vol. 63(2), pages 405-430, March.
    11. Vandegrift, Donald & Loyer, John & Kababik, David, 2011. "The effect of Walmart on the tax base: evidence from New Jersey," MPRA Paper 30937, University Library of Munich, Germany.
    12. Rudholm, Niklas & Li, Yuijao & Kenneth, Carling, 2018. "How Does Big-Box Entry Affect Labor Productivity in Durable Goods Retailing? A Synthetic Control Approach," HUI Working Papers 130, HUI Research.
    13. Freedman, Emily A. & McConnon Jr., James C. & Hunt, Gary L. & Gabe, Todd M., 2016. "An Analysis of the Economic Impacts of Big-Box Stores on a Community’s Retail Sector: Evidence from Maine," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(2), December.
    14. Sven-Olov Daunfeldt & Oana Mihaescu & Helena Nilsson & Niklas Rudholm, 2017. "What happens when IKEA comes to town?," Regional Studies, Taylor & Francis Journals, vol. 51(2), pages 313-323, February.
    15. Bonanno, Alessandro & Lopez, Rigoberto A., 2012. "Wal-Mart's monopsony power in metro and non-metro labor markets," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 569-579.
    16. Stapp, Jacob, 2014. "The Walmart Effect: Labor Market Implications in Rural and Urban Counties," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 2014, pages 1-17.
    17. Goetz, Stephan J. & Swaminathan, Hema, 2004. "Wal-Mart and Rural Poverty," 2004 Annual meeting, August 1-4, Denver, CO 20149, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Michael J. Hicks, 2005. "What Do Quarterly Workforce Dynamics Tell Us About Wal-Mart? Evidence from New Stores in Pennsylvania," Urban/Regional 0511010, University Library of Munich, Germany.
    19. Donald Vandegrift, 2016. "The effect of Walmart and Target on property tax rates," Letters in Spatial and Resource Sciences, Springer, vol. 9(3), pages 309-327, October.
    20. Peralta, Denis & Kim, Man-Keun, 2016. "Big-Box Retailers and Personal Income Growth in the U.S," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235216, Agricultural and Applied Economics Association.
    21. Martens, Bobby J. & Florax, Raymond J.G.M. & Dooley, Frank J., 2005. "The Effect of Entry by Supercenter and Warehouse Club Retailers on Grocery Sales and Small Supermarkets: A Spatial Analysis," 2005 Annual meeting, July 24-27, Providence, RI 19176, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    Labor and Human Capital;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jrapmc:132412. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/mcrsaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.