Has Wal-Mart Buried Mom and Pop?: The Impact of Wal-Mart on Self Employment and Small Establishments in the United States
Regulation, Vol. 31, No. 1, pp. 38-45, Spring 2008
8 Pages Posted: 16 May 2007
Date Written: Spring 2008
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.
Keywords: Wal-Mart, Walmart, mom and pop, creative destruction, spatial econometrics
JEL Classification: L81, D59, C21
Suggested Citation: Suggested Citation