Effects of E-commerce on Local Labor Markets

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 16345

Classification and Topics

• Classification: Wirtschaft ; State and Local Taxation, Subsidies, and Revenue ; Retail and Wholesale Trade; e-Commerce ; Technological Change: Choices and Consequences; Diffusion Processes
• Subject: e-commerce ; retail ; employment ; Amazon Tax

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bauer, Anahid ; Fernández Guerrico, Sofía
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/279043
• Last update: 10.03.2025, 11:45 AM CET