Abstract

http://ssrn.com/abstract=986362
 
 

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Has Wal-Mart Buried Mom and Pop?: The Impact of Wal-Mart on Self Employment and Small Establishments in the United States


Russell S. Sobel


The Citadel - School of Business Administration

Andrea M. Dean


West Virginia University - College of Business & Economics

Spring 2008

Regulation, Vol. 31, No. 1, pp. 38-45, Spring 2008

Abstract:     
This paper explores the widely-accepted view that Wal-Mart causes significant harm to the traditional, small 'mom and pop' business sector of the U.S. economy. We present the first rigorous econometric investigation of this issue by examining the rate of self-employment and the number of small-employer establishments using both time-series and cross-sectional data. We also examine alternative measures and empirical techniques for robustness. Contrary to popular belief, our results suggest that the process of creative destruction unleashed by Wal-Mart has had no statistically significant long-run impact on the overall size and profitability of the small business sector in the United States.

Number of Pages in PDF File: 8

Keywords: Wal-Mart, Walmart, mom and pop, creative destruction, spatial econometrics

JEL Classification: L81, D59, C21

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Date posted: May 16, 2007  

Suggested Citation

Sobel, Russell S. and Dean, Andrea M., Has Wal-Mart Buried Mom and Pop?: The Impact of Wal-Mart on Self Employment and Small Establishments in the United States (Spring 2008). Regulation, Vol. 31, No. 1, pp. 38-45, Spring 2008 . Available at SSRN: http://ssrn.com/abstract=986362

Contact Information

Russell S. Sobel (Contact Author)
The Citadel - School of Business Administration ( email )
Charleston, SC 29409
United States
Andrea M. Dean
West Virginia University - College of Business & Economics ( email )
P.O. Box 6025
Morgantown, WV 26506
United States
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