@TechReport{iza:izadps:dp16345, author={Bauer, Anahid and Guerrico, Sofía Fernández}, title={Effects of E-commerce on Local Labor Markets}, year={2023}, month={Jul}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={16345}, url={https://www.iza.org/publications/dp16345}, 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.}, keywords={e-commerce;retail;employment;Amazon Tax}, }