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Effects of E-Commerce on Local Labor Markets

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2023

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https://doi.org/10.2139/ssrn.4526271
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This paper studies the effect of e-commerce on local labor markets. We exploit cross-market variation in e-commerce price advantage stemming from the enactment of the Amazon Tax-state-level legislation that mandates state sales taxes collection to out-of-state online retailers. Introducing out-of-state sales taxes lowered employment and reduced wages in transportation and warehousing, industries complementary to e-commerce. Within the in-state retail sector, the decline in brick-and-mortar employment is somewhat offset by an increase in employment in warehouse clubs and supercenters. Our results are consistent with a general equilibrium model in which consumers substitute e-commerce for big-box purchases, crowding out brick-and-mortar retail.

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330 Wirtschaft

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e-commerce, retail, employment, Amazon Tax

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ISO 690BAUER, Anahid, Sofia FERNANDEZ GUERRICO, 2023. Effects of E-Commerce on Local Labor Markets
BibTex
@techreport{Bauer2023Effec-68674,
  year={2023},
  doi={10.2139/ssrn.4526271},
  title={Effects of E-Commerce on Local Labor Markets},
  author={Bauer, Anahid and Fernandez Guerrico, Sofia}
}
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