Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279043 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16345
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
e-commerce
retail
employment
Amazon Tax
JEL: 
H71
J2
L81
O33
Document Type: 
Working Paper

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