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Title: Effects of E-Commerce on Local Labor Markets

Citation Type: Miscellaneous

Publication Year: 2023

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Abstract: This paper studies how the expansion of e-commerce over the past decade affected labor markets. Utilizing the variation of state legislation on e-commerce sales tax collection-the Amazon Tax-which reduced out-of-state e-commerce retailers' price advantage, this paper finds declines in employment and wages in sectors complementary to e-commerce, such as warehousing and last-mile transportation. In the retail sector, there are observed declines in local employment and the number of establishments. Effects in retail are heterogeneous by sub-sector. While big box retail employment increases, other brick-and-mortar retail employment decreases. As the Amazon Tax may induce brick-and-mortar retailers to incorporate online channels, this paper analyzes changes in retail occupational structure. In non-urban areas, this paper finds an increase in the share of office and service occupations and a decrease in the share of sales and related occupations. Through a general equilibrium model, this paper finds that these results are consistent with an economy in which consumers substitute e-commerce purchases for big box purchases, which leads to the crowding out of other brick-and-mortar retail.

Url: https://anahid-bauer.github.io/assets/E-commerce_LLM.pdf

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Authors: Bauer, Anahid; Fernández Guerrico, Sofía

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Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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